Robinhood is becoming more and more popular among young adults and no wonder why it is doing so well. Offering free commision on trading, ability to trade options & even cryptocurrency, and now Robinhood welcomed ability for users to have checking and savings account with rather high yield when compared to the industry. Best part of all is everything I have used so far has been absolutely FREE! With their free stock option for just signing up, makes it even more worthwhile!
Before I dive in, instead of going straight into what it is, how to sign-up, and whether you should have Robinhood or not I wanted to instead start from my great experience with Robinhood and point out my amazing experience with using Robinhood that I believe you will also find interesting as I did.
Robinhood Interface (App)
Talk about an app! Robinhood has really mastered this aspect in both friendly website and an incredibly simple and easy to use app. I admit, at first everything seems to be all over the place, but it is like that with everything you try for the first time. After spending some time on either the website or app, you will find it very user-friendly yourself like I did.
Robinhood claims it takes about 4 minutes to create your account and it is true, all you need is to fill out your profile information, verify your identity with SSN, fund the account, and download Robinhood app.
Just wanted to mention again that you get a FREE Stock valued up to $500 for signing up through my link!
Stay Informed with Everything
Currently majoring in finance I found Robinhood very informative not just on market news, but also on news all over the world. I find myself using Robinhood on almost bihourly basis and it really has become my favorite go-to app.
Free Stock Valued Up To $500 for Signing-Up!
Robinhood has a very strategic way of members inviting other members or in other terms, they have a great referral program. For signing up through referrals you get a free stock valued up-to $500! Even if you are not interested in using Robinhood, right now it is worth getting a free stock because you don’t know what stock you will get and you could get free hundreds of dollars just for signing up! I don’t know about you, but I would jump on it right away here.
You could then refer your friends and family members to get free stocks yourself and it could turn into one lucrative side income! If you need some more ideas to make money, check out my archives page or posts below!
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With that said, let’s jump right into fundamentals about Robinhood from here
What is Robinhood
Robinhood is a free-trading app that is mostly targeting people that are either new to investing or want to learn how to invest in an easiest way possible with its simple to use application. It allows an investor to trade stocks, options, cryptocurrencies, and exchange-traded funds without paying any commissions or fees.
The services that Robinhood offers is very innovative with the industry and by it cutting the costs to zero, Robinhood becomes very competitive by all means.
If you are a heavy investor, Robinhood might not be for you and you should check out other alternatives like M1 Finance or read my review found here. CIT Bank is another great option if you are a heavy investor and looking for a long term growth.
Where Does Robinhood Stand Out?
Commissions: There are absolutely no commissions as I mentioned in the beginning of this post. Robinhood stands behind offering 100% commission-free stock, ETF, options, and cryptocurrency trades. Savings on commissions really does make the trading more lucrative if you are a beginner or simply you want to gain knowledge of trading. With free commissions, you are saving $5+ dollars per trade that it used to be. ***They will even make your funds available while money is getting transferred from your bank account, yep… you can start trading before your funds even arrive to your Robinhood account, that is amazing!
No Account Minimums: This one might sound familiar because almost anything you open these days that has to do with money will require some kind of minimum to start with. Well, not with Robinhood, you don’t need a minimum amount of money to start with. So, even a $1 deposit will do. There are some regulations though if you decide to open a portfolio with Robinhood which is required by FIRA, but I won’t go there because this is for serious investors.
Simplicity: I need to touch on this again and make sure that you understand what I’m talking about. If you know how to use your smartphone, you will find Robinhood as simple as that. There are not many options on the menu and everything is just perfectly user-interfaced for anybody. It will take minutes to get everything set up and figure out most basic functions.
Robinhood Premium Option: I mean they have to make money! But the features that come with it are pretty great! There is a Robinhood Gold where any user can sign up for which will allow you to trade on margins. The fee varies on how much buying power you have. *** If you are a newbie, I would not recommend trading on margins until you get familiar with the trading industry. Trading on margins has a high risk. Other features include Pre & After Market Hours Trading, and larger instant deposits.
Robinhood is up-to-date: Robinhood is up to date at all times! The company constantly seeks and implements ways on improving their user interface and honestly I believe they are way on top of their game and competition.
Robinhood Cash: Recently introduced is their Robinhood Cash which allows cash management with currently 2.05% APY which is rather high for the industry. Account has no minimum requirements, no monthly fees, no overdraft fees, and comes with Mastercard debit card to use.
Bottom Line
I have found Robinhood very innovative, well-established, informative, as well as being something I was looking for. Another thing I found is that Robinhood is more focused on <30 years old because you will find yourself much better off enjoying it than older generations due to its user interface more toward younger people because of no fee commissions and limited availability of what you can do and for me at this point it is everything I need.
Give them a try yourself if you are looking to learn about stocks and how markets work. Don’t forget to get your free stock because who knows and you might get $500 stock!
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Richard Barnett is a student majoring in finance, entrepreneur, marketer, content writer, budget traveler, and financial blog “Student Money Adviser” owner. You can read more about me here.