Robinhood Review

In this Robinhood review, you’ll discover the pros, cons–plus, how you can get a free stock like Apple, Ford, or Sprint–from leading stock trading app Robinhood. Robinhood allows you to invest in stocks, options, ETFs, and cryptos, commission-free, with a $0 minimum deposit.

We’ll start with a brief overview before you sign up to get your free stock. Then we’ll go through the upsides (and few downsides) before closing out our Robinhood review.

A Quick Overview of Robinhood

Here are some quick facts about Robinhood you should know:

  • Perfect if you manage stocks and options or trade ETFs frequently
  • It gives you on-the-go trading via the app
  • You can set up multiple taxable accounts.
  • You can set up multiple margin accounts.
  • The app is perfect for cryptocurrency trading.
  • The mobile app is available for iOS and Android.

Robinhood Review: Pros

There are several features of Robinhood that make it a great app including:

  • You pay zero commissions and no trading fees.
  • Investment fees and costs are impressively low.
  • Get your account opened and approved in 60 minutes or less.
  • There is no investment minimum deposit to get started (except the investment itself).
  • The app is known for its ease of use with a clean, streamlined interface.
  • You can upgrade to Robinhood Gold and take advantage of more features.
  • Recent upgrades make the research and resource tools more usable.

Commission-Free Trades

Robinhood’s best feature is commission-free trading for stocks, options, ETF, or cryptocurrency. Commission-free trades will save you money if you are a frequent trader. Robinhood also saves you money in fees and other investor costs that plague competitor apps.

Related: Best Investing Apps For Beginners

No Account Minimum

Many investor apps require an account minimum amount to start an investor account. Robinhood does not.

Rare Find: With Robinhood you don’t pay extra for commissions or fees on trades you make.

You purchase your first trading options and start managing your account. If you want to open a margin account, the starting point is $2,000 in accordance with industry regulations.

Fast, Clean Interface

While you may miss some of the features available on other apps, what you will not miss is the cluttered interface. You can quickly execute multiple day trading functions. You can also access stock market orders and limit orders.

Easy-To-Use Investing

Robinhood provides an easy-to-use app that gives you instant access. Simply sign up, fund your Robinhood account, and start investing. The entire process only takes a few minutes to complete. Robinhood sends you an approval notification in 60 minutes or less. It is also easy to set up as a day trader with your bank account.

Other Benefits

Robinhood also allows you to instantly stop orders from processing if you change your mind. There are numerous other features including:

  • Organized individual stocks sectors and categories
  • In-depth, updated information on many companies
  • Fully customizable side-by-side options trading comparison charts
  • The quick access tab bar shows portfolio values, watch lists, transactions, and account statements.

If you want to upgrade to Robinhood Gold, you can expand your investment possibilities with more features. Both the free version and the paid version offer advanced research tools. Furthermore, you can stay updated on current trading news and trends from your smartphone.

Related: Top Tax Apps To Organize and File Taxes in 2019

Robinhood has made significant strides in improving this feature, making it worth your time to explore the app.

Robinhood Review: Cons

If you are a beginner investor, then Robinhood offers a great low-cost platform to launch an investment portfolio. However, if you are a more advanced investor, you may find Robinhood to be inadequate. The app is limited in the following ways:

  • It does not support mutual funds or bonds.
  • You can only set up individual taxable accounts (brokerage accounts).
  • There is no call-in customer support – only email or online support (i.e. a robo-advisor)
  • Compared to other money making apps, Robinhood has limited features and tools.

One of the first things you may notice about Robinhood is that it does not support mutual funds and bonds. Therefore, old and new investors cannot set up an automatic dividend reinvestment program. Instead, you get cash credit for your dividends in your account.

While the company has promised to add this feature down the road, it does not exist at the present time.

Pro investors will also be disappointed to discover that Robinhood only supports individual taxable account types (brokerage accounts). As a result, you will have to invest for retirement on another app or platform.

Ideally, you want to invest for retirement before you start trading, not after. Consequently, this is a huge downside to the Robinhood trading platform.

Another miss is the lack of telephone customer support. True, you can get quick answers to your questions online or by sending a quick email.

But, in the world of trading, phone support is a highly valued commodity. Robinhood should consider adding phone support in the near future.

The Bottom Line

Robinhood is a best-in-class trading app.

Commission-free trades, no monthly fee and an easy to the user interface make it an A+

Plus, it is a quick go-to app for frequent investors due to its ease of use.

However, it ranks low for not supporting key investments or offering limited features (and is not one of the savings accounts). The lack of phone support may also turn some investors away.

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