One of my favorite investment apps is Robinhood. Since its introduction in December 2014, the app has attracted two million users and over $30 billion in trades.
The app is characterized by some unbeatable features:
Robinhood app allows users to buy and sell stocks without paying a brokerage fee.
Most discount brokerages (Ameritrade, Etrade, Schwab, etc) charge $5-$10 for individual stock trades. That means as we are buying and selling stock shares, we lose a significant part of our returns because of the commission.
Robinhood does NOT charge a single penny for brokerage fee.
NO Minimum Deposit Requirement
Unlike many online brokers that require $1,000 or more for opening an account, Robinhood has no minimum deposit requirement. Therefore, you don’t have to accumulate a fortune to make an investment. It is totally fine to start small, with a few hundred dollars, even just a few bucks.
The only exception is when you open a margin account (such as Robinhood Gold), you need to have a minimum portfolio value of $2,000, as required by Financial Industry Regulatory Authority.
NO Maintenance Fees
Since Robinhood does not have a minimum account value threshold, you never need to worry about maintenance fees that are typically charged to other brokerages when a balance is lower than the required threshold.
It employs a streamlined easy-to-use interface that is very easy to navigate. Users can access straightforward pricing fees and real-time market data.
Get Free Stock When Open a New Account
Robinhood is offering free stock promotion – a free share of stock for new accounts. It generally just takes you less than 10 minutes to create a new account and to get approved. Then you get a free share of stock, with a value anywhere between $3 and $150.
Once you have an account (you can do so using a computer), you can refer a friend. When the friend opens an account, both of you will receive one share of stock. The free stock will be awarded when a new account is funded.
Of course, there are certain limitations with Robinhood, such as currently offering brokerage accounts only, no IRA, HAS, or 401K account; the transaction only available from an app (not from their website).
Overall, the strength and benefits far outweigh its limitations. Check Robinhood help center for more details.
Robinhood is legitimate, not scam. It is a registered brokerage with SEC in all 50 states in the U.S. and a member of Financial Industry Regulatory Authority (FINRA). It is insured under Securities Investor Protection Corporation (SIPC) insurance to protect against fraud up to $500,000.
Last, but not least–a fun fact. Why is it called Robinhood? As the Founders explained, their goal is to make investing accessible to everyone, not just the wealthy people. Isn’t that great?