Robinhood Review 2019 – (Free Stock)!
- Robinhood is a great choice for complete beginners.
- Robinhood offers $0 Stock, ETF, Options & Crypto Buys & Sells.
- Robinhood Does not offer retirement accounts.
- Robinhood offers new users a FREE stock if they sign up here.
What Is Robinhood?
Robinhood is a unique brokerage firm established in 2013, that was released for one purpose, bring commission free trading to the masses. They have been constantly changing and are currently offering Stocks, ETFs, Options, and Crypto all for FREE. Robinhood was designed for the newer investor, so it was designed to be the simplest trading platform out there. This in turn is one of their downfalls as advanced traders find the simplicity lacking when it comes to technical indicators, graphs, stock data, order types and research tools. Still, if you are looking for a simple platform where you can trade for $0, it’s the perfect option.
Robinhood allows users to trade Stocks, ETFs, Options and Cryptocurrency completely free. There are no strings attached or hidden fees of any kind.
First off you can begin investing with 0, if you sign up through my referral link HERE you get a chance of getting a share of stock valued between $3 and $150 – the average is $10!
- ~80% chance the stock has a value of $3-$10;
- ~18% chance the stock has a value of $10-$50;
- ~2% chance the stock has a value of $50-$150.
Robinhood Minimum Req & Fees
Robinhood is a 100% free trading platform. They do not charge any hidden account or trading fees. They have no minimum balance to open an account, but if you want to open a margin account you do need to have $2,000.
Robinhood Gold allows you to have a number of additional features;
- If you need to have at least $2,000 in your account, you can open a margin account.
- Robinhood extends you a loan to purchase stocks relative to your account value.
- This will increase your buying power, (Margin trading is very risky, and beginner investors should not be using it.)
- You can have instant deposits from your bank.
- Access to Professional research reports from Morningstar on most, but not all stocks (mainly penny stocks).
Robinhood continues to have the most simple user interface of any investing app I’ve tested. For beginners this can make it easy to pick up and use, plus new users receive a free stock when signing up.
Robinhood is fully legal and they use Apex Clearing Corporation to clear trades and are registered with the SEC to operate in all 50 states (and 2 territories). They have Securities Investor Protection Corporation (SIPC) insurance, so your balance is protected up to $500,000 (with a $250,000 limit on cash). This is to protect against fraud, not loss of value.
There are PROS of course otherwise I would not recommend this to new investors.
- FEE FREE TRADES, Where other firms would charge you $4.95 per trade on $100 cutting your initial loss at already 4.95% Robinhood does not do that savings hundreds if not thousands of dollars when investing through them long term.
- Ability to trade Stocks, ETFs, Crypto & Options
- Their interface is simply so that new investors looking at it for the first time would not feel confused (also a con, but to more senior investors)
- They allow margin and it’s not expensive
- They do provide monthly reports that can be opened in the app and send via email to be downloaded in PDF form
- Their history is very easy to see (Buy/Sell’s & Upcoming Dividend Payouts up to a month out)
- It’s on Mobile and PC so easy to access via phone, you can essentially be buy/selling stock while in a meeting or on the go.
There are of course some cons I will point out they are very sleek and minimalist so they do provide basics (account value, historical charters, stories)
- Only basic order types are supported.
- Do not offer retirement accounts.
- Very limited research tools and data available.
- No DRIP (Automatic Dividend Reinvestment)
- No trading simulator.
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