Robinhood App Review 2020

Robinhood Review

Value For Investors

5/5

Value For Active Investors

1/5

Fees

5/5

Customer Service

4/5

Mobile Trading

3/5

Summary

Robinhood offers a great solution for passive investors looking for no commission trades. Unfortunately it’s not ideal for active day traders as it’s missing many tools day traders need such as short locates and fast routing. 

3.4

3.4/5

The whole idea of stock trading sounds a lot better when you can trade for free with no extra hassles or charges added to the whole process. This is what the Robinhood app offers. 

The Robinhood app is the perfect choice for anyone who wants to go through a seamless stock trading procedure while running a 100% free commission. 

Whatever trade you want to make in whatever capacity, all can be done without paying any fee or any commission.

There are usually some needless costs that are known to be associated with investing in stock trading, this usually increases whatever amount you intend to spend on the whole process.

So, a situation where you can get your maximum trading experience as you should without having to pay these needless commissions or extra charges to the platform through which your trading is done is truly a relief.

However, this app comes with some limitations that you would most certainly like to do without. 

About Robinhood

With over 5 million users since its inception in 2015, the Robinhood app is one that certainly hit the market with a force and its major selling point then (and now) was its free trading feature. 

On the Robinhood platform, you are allowed to trade- stocks, ETFs, options and, American Depositary Receipts for a lot of companies globally reaching up to 250 and more.

It works as a web-based platform, but it is designed to meet properly the needs of the investors without hassles. 

The platform is rather bland and empty with just a few important data, which is a problem, but it works, if you are into that kind of things, that is.

Its mobile trading platform allows you to trade on-the-go, listen in on live earning calls, provides you news update on everything trading, comes with alerts that you can customize to suit your needs as well. 

While there is research data available on the site, it will be important to note that this is highly limited and in most cases not enough for the investor searching, so an investor might have to do a wider search away from the Robinhood platform to get in-depth information on whatever trade they intend to carry out on the platform. 

In 2018, the company took the initiative to step into the cryptocurrency waters and introduced their cryptocurrency called the Robinhood crypto, which is exchangeable in trade with other cryptocurrencies we are used to.

However, not a lot of people are keen on the idea of using the Robinhood crypto because of the security issue surrounding it, as Robinhood is not a member of the Financial Industry Regulatory Authority (FIRA) or a member of the Securities Investor Protection Corporation (SIPC), so you are not sure of the safety of your investment.

When you cannot put money and security comfortably positively in one sentence, there is a problem  

Features of Robinhood

  • There are no minimum investments 
  • The stock trading is free 
  • The option trading is free
  • You are allowed to trade in Stocks, ETFs, Cryptocurrency…
  • The website is simple and easy to access 
  • Promos; if you refer a friend to use the app, both of you will be given a free stock. 
  • You are allowed to schedule your deposits to be delivered monthly, weekly, quarterly or biweekly. On the set time, an automatic transfer would be made 
  • For deposits under $1000, you can skip the three-day wait and instantly access your deposits. This feature is called the Robinhood instant. 
  • The Robinhood gold feature, which offers the option of making larger than the usual amount of instant deposits, trading which can be done after-hours, and line of credit. 

While the Robinhood gold is seemingly a dream come true, it is important to note that it is not free. You will have to subscribe for this feature because let us face it, they are not Santa-Claus. 

It also comes with some terms and conditions as well, which are according to the regulation of the Financial Industry Regulatory Authority. In that, you need at least $2000 minimum balance, to open a margin account. 

You will pay $5 monthly to access this margin account and this $5 makes you eligible for up to $1000 in the margin.

 If you were wondering how Robinhood, with all the freebies they offer, make their money, this right here is your answer—the gold feature. 

The gold feature also gives you access to research and data about your chosen trade. 

Pros 

Cost-effective: This remains the biggest selling point of the Robinhood app. Their freebies have endeared a lot of users to them, and even when you want to make use of the gold option where you will have to let go of some dollars, it is obvious that it is still not as much as you would have been charged on other platforms. 

Easy-to-use platform: With an easily accessible site, and a user-friendly interface, navigating through the Robinhood app platform is not at all a hard task to carry out. 

Cons: 

Poor research data: To make a trade of whatever nature, you need the proper knowledge, which means deep research. This is something the Robinhood app does not have. It is very poor in the research area unless you are signed up to the gold.

The customer service is not 24/7: While you can reach them via an email, you cannot call them. There are thousands of emails reaching them each day, so there is a chance that your issue might not be answered right on time. This might pose a problem as you might need a customer service that runs every day and all day in case you have an issue that needs resolving by the weekend. 

When you look at it, it is not exactly as free as it prides, if most of the important features come with the Robinhood Gold. 

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