Robinhood Reviews - What Is It?
WARNING: DO NOT BUY Robinhood Until You Read This Review!
Is it a Scam? Does It Really Work?
Robinhood is a free-trading app that can be a perfect solution for investors who are looking for the ability to buy a wide range of options, stocks, and ETFs without paying fees or commissions. This application has no full-service online trading platform even though in 2018 it added free options trading. Some investors may not find such assets as mutual funds. In any case, Robinhood is suitable for options, frequent stock, or ETF traders, as well as mobile users, margin accounts and individual taxable accounts. This discount stock broker was created in 2015 and has become extremely popular lately. At present, the platform has more than five million users, which is more than the number of people who use E-TRADE, a popular brokerage. In the middle of 2018, Robinhood's platform has hosted over $150 billion in transactions. Recently, the company has been valued at $5.6 billion. In 2018 the company has built up its Options Trading service, expanded its web version, and rolled out Robinhood Crypto, which allows you to trade cyber currencies. Let us discuss how this fee-free brokerage works.
When it comes to Stock Trading, you will have to hop into the Robinhood app on your phone with your fingerprint or password to access your account. The menu has no "trade" option, which may seem confusing at first. In order to trade a stock, you will need to click on the "search" icon and look for the stock you want. It is free and simple once you pull up the page with major details about the company and price. The process is as easy as advertised and you will like the fee-free experience. The platform supports limit orders, market orders, stop orders and stop-limit orders with good-till-cancelled or good-for-the-day parameters. Trades are free, so you may want to dive into the field of day trading. The account screen will show you the variety of day trades, so you may want to give it a try. Let us take a look at the other features of Robinhood, as well as at the real users' reviews available online.
Customer Reviews - Does Robinhood Really Work?
Options is a new product for the broker, which allows you to get access to no-fee contracts. It is completely free as it includes no per-contract fee, commissions, exercise fee or assignment fees. Robinhood's Options Trading includes advanced trade strategies and useful filters. It means that you can trade multi-leg options strategies in one order and monitor these contracts too. Trading options is recommended to experienced investors who can increase their margins successfully. Robinhood offers a new cryptocurrency trading service that allows buying and selling six popular currencies: Ethereum, Ethereum Classic, Bitcoin, Bitcoin Cash, Dogecoin and Litecoin. Even if you cannot buy and sell, you will have access to market and price data for sixteen popular cryptocurrencies. The advantage of Robinhood is that it extends its no-fee trading to cryptocurrencies. Besides, you can trade 24/7.
Robinhood has a mainly positive online reputation among users. The latter appreciate several features about this company. The first one is that this application is completely free? Robinhood provides 100% commission-free options, stock, and ETF trades, which promotes significant savings for investors who trade often. Every dollar you save on fees and commissions is a dollar in your returns. Today the company continues to expand its free offerings. For example, multi-leg options were added in December 2017 and in June 2018, which allowed traders to use less capital to set up these trades. Robinhood has no account minimum, which means that investors can get started immediately. In order to invest, you'll need enough to buy at least one share of the stock or ETF, though. But it is not much when compared to $1,000 required by many other online brokers. It should be taken into account, though, that Robinhood requires a $2,000 minimum portfolio balance to open a margin account, according to the regulation of the Financial Industry Regulatory Authority. To be involved in cryptocurrency trading, you will need an account with Robinhood Crypto. The minimum amount necessary for orders is $0.01 for ethereum and $0.10 for bitcoin.
Another feature of the app most users highly appreciate is its ease of use. Most people find the sign-up and account funding process painless and really fast. It happens within a few minutes, where you just need to answer several questions about your personal information, Social Security number, contact details, and means of funding your account. Approved customers are notified within an hour; after which they can initiate bank transfers. The app uses instant verification with different banks. Bank transfers usually take from four to five days to complete. They can also be set up to occur automatically each week, month or quarter. Bank transfers of up to $1,000 from new customer are available instantly for investing. Streamlined interface is another positive feature, especially for investors who know what they want. The app supports limit orders, market orders, stop limit stop orders and robinhood-pricing orders. The web version has a waiting list and features collections of research, stocks, earnings, analyst ratings, news, and tools to discover new stocks. The app offers Robinhood Gold, a premium service that provides access to extended-hours trading from 9 a.m. to 6 p.m. New investors should know that margin trading may be risky and they can lose more than they invest. Let us take a look at the actual users' testimonials found online.
"I have an account at Vanguard, Fidelity, and Robinhood. The latter is a free broker. I love its simplicity. My Fidelity app freezes up often and from time to time I have to restart the app to see my portfolio. It is very inconvenient and they don't seem to fix it. Besides, Fidelity cannot link my account to my bank account for me to be able to add funds, so I opened the second IRA at Vanguard. Robinhood works just fine. To my mind, it is great for people with lower income. You can make smaller trades."
"I love Robinhood. I always wanted to become a day trader and this app allows me to do this. There are no trade fees. I have been trading with this broker since November making only a $50 deposit, and adding what I could. I have invested $1000 of my own money and I am 20%+ on my trades now. I have a special trading method but I will keep it in secret. I believe every person should find their own methods too. But I will say that it is beneficial to take full advantage of the stop loss/limit and limit buys. I am ready to give this broker five stars."
"Robinhood is a perfect application. I have been using it for almost four months and I have already learned how to use it correctly. At first, though, I used to have minor issues. I had bought about 14,000 of a stock already. I would certainly recommend this broker to others."
My Final Summary
Taking into account everything we have learnt about Robinhood, this app seems to be worth your attention. There are many reasons for such conclusion. It offers free trades. The application is easy to use when signing up for the service and when making trades. This broker has recently introduced Options at no cost. You will be able to receive a notification on your mobile phone for major news on stocks in your portfolio and earnings announcements. Crypto is good for those who want to trade or just track cryptocurrencies. ACH Transfers have no fee. Robinhood doesn't have minimum deposit for most accounts either. The official website of the broker is very intuitive and is easy to use. Most users report that they are pleased with the customer service too. Summing up, it is important to conclude that Robinhood is a great way to invest money without fees. The platform adds new features regularly and works well for your stock trading account. It is a great value, so I do recommend Robinhood.