What is Robinhood?
Robinhood is a mobile app for iOS and Andriod users that allows you to buy, sell, and trade stocks for free. The Robinhood founders wanted to “democratize the financial markets” and provide an avenue for many to begin investing. Robinhood is registered with the SEC, a member of FINRA and has Securities Investor Protection Corporation (SIPC) insurance.
How does Robinhood work?
Robinhood is a mobile app which focuses on simple tasks. It does not have all the features you may find with a traditional discount brokerage. The streamlined app can actually be a benefit for the beginner or more seasoned investor seeking simplicity and ease of use. Robinhood trades are not self-clearing and use Apex for its trades.
- Streamlined interface for easy trades
- Trade stocks or exchange-traded funds (ETFs)
- No commission or fees for trades
- No minimum investment requirements
What are the fees?
Absolutely no fees.
Curious how Robinhood makes money? In their FAQ we found Robinhood may earn from margin lending interest and interest on any uninvested customer cash deposits. Additionally, the Robinhood Gold service with a monthly fee is another source of revenue.
How to get started with Robinhood?
There are no account minimum balance requirements, nor will they charge a fee for an account with a zero balance.
- Download the app. It takes 4 minutes to setup your account.
- Confirm your identity
- Connect a bank account and fund your Robinhood account
- Start investing
By using this our affiliate link, Robinhood will give you a free share of stock. Your share is random but can come from Apple, Ford, or Zynga.
Extra Robinhood Feature
Robinhood Gold is the premium service offers investors access to additional features and services.
- Credit Line – Get up to 2x buying power without depositing a dime. This is otherwise known as a margin account. The amount of credit line you receive depends on a number of factors and your investing experience.
- After-Hours Trading — Get access to pre-and-after market trading. Robinhood will extend trading 30 minutes before the market opens and 2 hours after it closes. You get two full hours of market access every single day.
- Instant Settlement — You get Instant Deposits so you can use cash from back transfers immediately giving you an opportunity to purchase more than you have currently in your cash. Additionally, you will give Instant Reinvesting which means you can use proceeds from selling shares to buy other shares.
My Smile Lifestyle Summary
Robinhood is a very good mobile investing app that can help you enter the stock market with a simple interface. It’s absolutely free so you don’t have to worry about any buried fees. If you decide to upgrade to Robinhood Gold, you unlock additional features that may be useful once you’ve managed to learn more about investing.
With Robinhood, you may not have all the features you’d expect with a discount online brokerage website, but it does a pretty solid job of helping you get into the financial markets.
Get started with Robinhood today won’t cost you a dime and well worth the time and effort.