Robinhood Review
Everyone these days is looking for opportunities to earn with ease. Some are investing in physical products while others are focused more on digital products and services. However, there is also a group of people who are smart enough to let others make money for them. This is where stock trading and cryptocurrencies come into play.
There are a lot of people in the world who trade shares, stocks, and crypto to earn a living. In the older times, this was done all offline with the help of calls. With all the advancements that digitalization and technology have brought, now it is possible to do all that you need to do right from your home. All you need is a device that can be your mobile phone or a computer with an internet connection.
In This Guide
How does it work?
The main methodology of working for Robinhood is pretty much similar to all other stock trading online platforms. You invest, you earn, you withdraw! However, there are some things about Robinhood that make it special and unique. It is made to democratize finances for everyone making sure that you can invest regardless of your bank balance and the amount that you can invest.
It makes it possible for everyone to become a part of the financial markets. Interestingly, it not only allows everyone to be a part of the financial markets but the features like a variety of choices to invest and investment specifications make things even better. So, Robinhood brings a very understandable, and investment-friendly approach for everyone.
What are key Features of Robinhood?
The long list of features that Robinhood brings for all its users makes it one of the best platforms for everyone. However, some special features make it even more attractive for the newcomers who are not ready to invest huge amounts. Below are the detailed features that you can get from Robinhood.
No minimum balance or investment requirements
A lot of youngsters are willing to invest to make a living and they have amazing knowledge about trading as well. The issue is that most of the trading platforms do not let them trade. Why? Because they do not simply meet the trading requirements of those platforms. This is not the case with Robinhood.
When you select Robinhood you can enjoy trading like no other platform because there are no minimum balance requirements. At the same time, there are no investment requirements as well making it an amazing choice for bingers.
Invest even before the stocks go public
Getting shares in companies can be an amazing way to earn when the company grows. However, there are a lot of companies with potential in them, but their shares are not for sale publicly. When Robinhood is at your side you can earn well by requesting shares from companies that are not even publicly selling them.
In this way, you can buy shares for cheap and when they go public you can sell them for more making good money in a short time.
Reduced risk because of variety
Have you ever thought about how you invested in something and lost all your money? Well, there are huge chances of this happening but only in the case when you invest all of your savings on one thing. Robinhood understands this and provides you with a platform where the risk is pretty low.
If you invest in multiple things, there will be fewer chances that all of them go down. So, with Robinhood, your risk of loss will be low because you can invest in a variety of options.
Real-time trading
Trading is not as simple as it seems. There are some critical things that you must care for and the most important of them is time. Even if there is a slight lag in time then you will place a trade and when it is placed in the market the actual stats might have changed. So, the experience will not be amazing in this way.
However, the thing with Robinhood is that it provides you the option of Real-time trading. It means that every trade that you place in the market will be placed at the stats of exact time. It will make sure that your trade gets the exact price no matter what.
Trading and learning for everyone
While the experienced trades do not have a lot of issues regarding learning to use any new platform or trading with a new option. The new ones in the market have to face a lot of issues. Robinhood takes care of this issue for you as well. When you select to go with Robinhood you do not have to worry about making mistakes.
The interface has a lot of instructions and tutorials that will make you learn to trade as you keep going. In this way earning will be more fun and educational for you.
Do it all from the palm of your hand
Trading with Robinhood will never need you to manage things from a full-fledged desktop system. You are not bound to sit at a specific place for a specific time. All that you need to do can be done right from the palm of your hand. Whether you need to manage your portfolio or you need to manage some of your online assets, you can do that all from your application.
Customizations available to make you the boss
With Robinhood, you do not have to adapt to things. You can set the things according to your liking. Here you can keep tabs on all of your money by customizing the news and notifications. You can customize things as you like so that you stay up to date about everything.
At the same time, the customizations will filter out the things that you do not like, making the experience better.
3-minute newsletter
Newsletters are either too short or too long. Robinhood provides you with its 3-minute newsletter. It will be your perfect way to start the day by knowing all the stats right from the beginning of the day without costing you a lot of time.
How Robinhood can help you in multiple ways?
The long list of features already makes Robinhood a highly valuable platform but there is more. There are certain benefits of using some trading platforms and Robinhood ensures to bring the best of the best for you. Here are some amazing benefits that you can enjoy when using Robinhood as your main trading platform.
Easy to use platform
Whether you talk about the mobile application or the website, altogether it is a very easy-to-use platform. In this way, Robinhood becomes very easy to navigate through even if you are a beginner with no experience before.
Low costs and commissions
One of the biggest problems with the trading platforms is that there are high costs and fees for trading. Even when you earn big amounts, most of your earnings go to the platforms in terms of fees, commissions, and other charges. Neither of them will be a problem with Robinhood. It provides a transparent business model.
In this way, it is mentioned which options are free to trade. Similarly, all the charges are mentioned as well making the whole thing easily manageable.
Variety of options for investment available
Unlike most of the trading platforms that are either focused on stocks, or shares, or crypto Robinhood brings a centralized trading experience. If you are looking to make an investment you can get as many options from all domains of investment.
Instant access to the deposited cash
Robinhood makes sure to follow all the ways to bring a better experience for you whatever the case is. This benefit is about making sure that you never have to wait for your money to become usable. Most trading platforms ask for some time before they allow you to access your deposited cash.
It is not the case with Robinhood as you can instantly access all your deposited cash.
Margin investing options are available
Margin investment is the need of any person who does not have all the funds required. The main idea here is that you borrow some amount from the brokerage platform and add your investment amount to make the complete transaction.
Robinhood provides this margin investment feature so that you never have to miss a trade that you would otherwise have made.
Feature-rich website available
Some people want the experience of a website for trading. It is because the website provides more information in all aspects.
There is more screen real-estate so you can get to know about a lot of information with ease. Robinhood cares for such users as well and provides an amazing website platform that is full of all the necessary features.
Cash management accounts are available
If you find it difficult to manage all your money when you are trading, then you will be amazed to hear that Robinhood has got you covered. You do not need any third-party service provider for this simple feature as all of the things are present within the platform. So, with Robinhood at your side, you can easily do all of the cash management with its cash management account.
What makes it better than others?
If we take a look at the world of investors, we will see that most of them are not too young. Most of the investors can meet the requirements after they have already earned a lot in their younger days of life. However, the fact that everyone can invest using Robinhood makes it better for younger individuals
Taking a look at the current user base of Robinhood you can see that more than 13 million users are currently using it as their trading platform and the average age of users is 31 meaning that the public is amazingly adapting to it. Apart from this unique valuable feature of Robinhood, there are a lot of benefits and features that it brings.
Easy to use platform with a combination of better approaches for investment makes the trading experience even better.
Robinhood at a single glance
| Robinhood Offerings and Features | How it brings value for you |
| Account minimum requirements | $0 for Gold Account and Brokerage account |
| Annual Fee | $0 |
| Outgoing Fee | $75 for ACAT Outgoing |
| Cryptocurrencies | 7 coins available in 48 states |
| Platforms | Website and Mobile application |
| Educational assistance | Regular news from newsletter. Additional premium news services available for $5 |
| Customer support | In app, email, 24/7 call service on request |
Some Potential Cons to look at.
While Robinhood comes with a lot of amazing features and benefits, it comes along with some cons as well. So, some of the cons that you may face using Robinhood are:
- Some payment fees and commissions are not as transparent
- Robinhood does not bring a lot of educational and training resources in its platform like some other platforms do
- There are no options available for bonds
- There are no options available for mutual funds
- The customer support here is not that good
- No retirement accounts
These cons might be less in the count but for some users, they are so critical that they cannot go for Robinhood. So, when you are planning to select a trading platform for yourself make sure to go with the one that meets your requirements in the best manner.
Final Verdict
Different trading platforms bring value to different types of clients. Robinhood is a platform that targets a lot of different types of clients. Its features and set of requirements make it a perfect choice for a lot of users. Meanwhile, it is also not the best choice for some people.
So, depending on your experience and balance, if you are a newbie and want to learn more and risk or lose less then Robinhood is your place to go. On the other hand, if you have a lot of experience then you can find some competitors to be better. However, in that case, you might have to let go of some amazing features that you get from Robinhood.
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