top of page

ROBINHOOD REVIEW: PROS & CONS

Have you come across this financial app and wonder what it is all about? In this review, we will walk you through the key points to consider when evaluating its features and benefits.

Last Update:

27.6.24

  • X
  • LinkedIn

BASIC INFO

Robinhood is an online brokerage platform that has gained popularity for its commission-free investment approach. Founded in 2013, Robinhood has stood out for its ease of use and accessibility for retail investors in the United States.

Year

2013

HeadQuarters

United States

Service

TRADING

Website

PROS & CONS

PROS

Regulated by a Credible Government Agency

This platform is regulated by a credible government agency, ensuring that it operates in compliance with industry standards and regulations. Regulation provides a level of security and protection for traders, as it requires the platform to adhere to specific rules and guidelines designed to safeguard the interests of market participants. Trading on a regulated platform can enhance trust and confidence in the trading environment.

+1000 Stocks/ETFs Available

This platform offers a wide selection of over 1000 stocks and ETFs for traders to choose from, providing ample opportunities for diversification and investment.

Fast Registration Process

This platform offers a simple and straightforward registration process, allowing users to quickly create an account and start trading without unnecessary complications.

Multi-Asset Trading

This platform allows traders to engage in multi-asset trading, enabling them to trade various financial instruments, including stocks, ETFs, forex, and more.

Advanced Order Types

This platform supports advanced order types, providing traders with additional flexibility in managing their trades and implementing various trading strategies.

CONS

Poor Customer Support

This trading platform offers limited customer support, leading to delays in resolving issues or inadequate assistance for traders. With subpar customer support, traders may face challenges in getting timely responses to their inquiries, resolving technical difficulties, or receiving necessary guidance.

Poor Track Record

This broker has had fines or significant regulatory incidents in the past, indicating a history of regulatory issues and penalties, which may raise concerns about their compliance and ethical business practices.

Lack of Educational Resources

This trading platform lacks comprehensive educational resources, making it challenging for traders to access valuable learning materials and enhance their trading knowledge. Without access to educational resources, traders may struggle to understand complex trading concepts, strategies, or market analysis, limiting their ability to make informed trading decisions.

APPS

ROBINHOOD

Internally developed trading app.

Trading App

The image shows the user interface of the mobile trading application, highlighted by its intuitive and easy-to-navigate design.

The main screen presents a clear and concise view of the market, with quick access to a diverse range of assets, including stocks, forex, and indices.

ACCOUNT OPENING

How to Open a Trading Account with Robinhood


Opening a trading account is a process that involves several key steps to ensure both your trading needs and the broker's regulatory requirements are met. Below, we describe the process in detailed steps:


  1. Visit the Broker's Website: Access the official website (found in the index of this review). Look for the option to open a new trading account, which is usually clearly indicated on the main page.

  2. Complete the Registration Form: Provide your personal details, such as name, address, email, and phone number. Depending on the broker's need to know you better as a client, additional information about your trading experience, employment, and financial situation may be requested.
    Identity Verification: Upload documents to verify your identity and residence. This generally includes a photo ID (passport or identification document) and a proof of address (utility bill or bank statement).

  3. Set Up Your Trading Account: Configure aspects of your account, such as currency type, leverage, and, in some cases, trading preferences.

  4. Deposit Funds: Make an initial deposit using one of the payment methods accepted by the broker (We detail the alternatives later).

  5. Access the Trading Platform: Download and install the trading platform. Log in with your account details.
    Practice with a Demo Account (Optional): Practicing trading with virtual funds before risking real money means you won't be surprised when using real money.
    Start Trading: Once your account is set up and funded, you can start trading.



How to Deposit


Once you have decided how much to deposit and which method to use, making the deposit is simple and quick. Just follow these steps:


  1. Log in to your newly created account.

  2. Click on "Deposit Funds".

  3. Enter the amount and select the currency.

  4. Finally, select your chosen deposit method. Don't worry, it's a  secure and private process. Transactions are communicated using Secure Socket Layer (SSL) technology.


Below we show you the available alternatives.

Deposit & Withdrawal Methods

Bank Transfer
Wise

ASSETS & SERVICES

Key features of Robinhood include:


  • Stock Trading Costs: $0.

  • Options Trades: $0. (Not available in IRAs).

  • Account Fees: No annual, inactivity, or ACH transfer fees. $100 ACAT outgoing transfer fee. (Robinhood Gold costs $5 per month).

  • Interest Rate on Uninvested Cash: 1.5% for free accounts, 5% for Gold accounts.

  • Tradable Securities: Stocks, ETFs, Options (Not available in IRAs), Cryptocurrency (Not available in IRAs), American Depositary Receipts for over 650 global companies, Fractional shares, Bonds only available in the form of bond ETFs.


In terms of the asset offering:


  • Options Trading: Commission-free options trading, including a variety of strategies such as calls, puts, and spreads.

  • Cryptocurrencies: Access to buying and selling popular cryptocurrencies like Bitcoin, Ethereum, Ripple, and Litecoin, with 24/7 trading availability.

  • American Depositary Receipts (ADR): Enables investors to participate in international markets, providing access to over 650 global companies.

  • Cash Management Service: Accounts with an attractive interest rate on uninvested cash, enhancing returns on cash balances.

  • Bond ETFs: Investment in the bond market through ETFs, offering a way to diversify and lower risk compared to individual stocks.

REGULATION

bottom of page