Robinhood review: Robinhood is a popular commission-free trading platform that aims to democratize investing and make it accessible to a wider audience. The platform was founded in 2013 and has since gained significant popularity, particularly among young and novice investors.
One of the key features of Robinhood is its commission-free trading model. This means that users can buy and sell stocks, exchange-traded funds (ETFs), options, and cryptocurrencies without paying any trading commissions. This has been a game-changer for many investors, as it eliminates a significant barrier to entry and makes investing more affordable.
In terms of security and regulation, Robinhood is a registered brokerage firm and is regulated by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The platform takes security seriously and offers features such as two-factor authentication and account protection measures.
| 💵 Currency: | USD, with limited support for EUR and RUB |
| 💰 Min deposit | From $10 |
| ⚖️ Leverage | |
| 💱 Spread | |
| 💹 Markets | Stocks, Indices, ETFs, Commodities, Cryptocurrencies |
| 📱 Mobile apps | iOS, Android |
| 🗺️ Headquarters | Menlo Park, California, United States |
Overall Robinhood Review
Overall, Robinhood has gained popularity for its user-friendly interface, commission-free trading model, and accessibility. It has attracted a large user base, particularly among younger investors who are drawn to its simplicity and affordability. However, it's important for users to consider their individual needs, investment goals, and the limitations of the platform before deciding to invest through Robinhood.
Go to Robinhood website
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Geographic Distribution
Geography of clients (traders) of Robinhood
Top Reviews
Best customer reviews of Robinhood
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Robinhood is a fantastic platform for beginner investors who want to start their investing journey. The commission-free trading model is a game-changer, allowing users to invest in stocks, ETFs, options, and cryptocurrencies without worrying about trading fees. The user-friendly interface and intuitive design make it easy to navigate and execute trades. The fractional shares feature is also a great advantage, as it allows users to invest in high-priced stocks with smaller amounts of capital. Overall, Robinhood provides a convenient and accessible platform for individuals looking to enter the world of investing.
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Robinhood offers a commission-free trading experience, which can be appealing for cost-conscious investors. The platform's simplicity and user-friendly interface make it easy for beginners to navigate and place trades. However, it is important to note that Robinhood has a limited product offering compared to other brokerage firms. Advanced investors may find the lack of research tools and advanced trading features limiting. Additionally, the customer support options are limited, with no phone support available. While Robinhood provides a good entry point for new investors, more experienced traders may require additional features and resources.
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While Robinhood's commission-free trading model is attractive, there are some drawbacks to consider. The platform has faced criticism for its lack of transparency regarding its revenue streams, such as payment for order flow. This has raised concerns about potential conflicts of interest and whether users are truly getting the best execution for their trades. Additionally, the limited customer support options, particularly the absence of phone support, can be frustrating for users who need immediate assistance. Lastly, the research and analysis tools offered by Robinhood are basic, making it difficult for users to conduct in-depth research and make informed investment decisions.
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Expert Review
Expert Review of Robinhood Review
Reviewing the reliability of the Robinhood exchange requires a careful examination of its features and performance. As a financial expert, it is important to consider several factors.
Robinhood has gained popularity for its commission-free trading model, which has attracted a large user base, particularly among young and novice investors. However, it's essential to note that the platform has experienced technical issues in the past, leading to service outages and trade execution problems. These incidents have raised concerns about the reliability of the platform during periods of high market volatility.
Another aspect to consider is the platform's limited product offering. While Robinhood provides access to stocks, ETFs, options, and cryptocurrencies, it lacks access to other investment vehicles like mutual funds and bonds. This limited offering may not meet the diverse investment needs of more experienced and sophisticated investors.
Additionally, Robinhood has faced scrutiny regarding its revenue model, particularly the practice of payment for order flow. Critics argue that this arrangement may present conflicts of interest and potentially compromise the best execution of trades.
Furthermore, the research and analysis tools provided by Robinhood are basic, which can be a disadvantage for traders who rely heavily on in-depth market analysis and advanced charting capabilities. The platform may not meet the needs of experienced traders who require robust research resources to make informed investment decisions.
Considering these factors, it is crucial for traders and investors to carefully evaluate their risk tolerance and investment goals before relying solely on Robinhood as their primary trading platform. Seeking alternative platforms that offer more comprehensive features and a track record of reliability may be advisable for those with advanced trading needs or a preference for a more robust trading experience.
Financial expert and analyst at TradersHero.com
Risk Warning! Trading on Robinhood, like any other financial platform, involves certain risks that users should be aware of. One of the key risks is market volatility, which can lead to significant fluctuations in the prices of stocks, options, and cryptocurrencies. These price movements can result in potential losses, especially if trades are executed without careful consideration or risk management strategies. Additionally, users should be cautious of the potential for technical glitches or system outages that may disrupt trading activities. It's important for traders to conduct thorough research, understand the risks associated with different investment products, and consider their financial goals and risk tolerance before engaging in trading activities on Robinhood or any other trading platform.
Copy Trading
Investment Programs
On Robinhood, users can engage in various programs and strategies to potentially earn money. Here are a few options to consider:
- Stock Trading: The company provides access to a wide range of stocks listed on major exchanges. By researching and investing in individual stocks, users can aim to profit from price appreciation and dividends.
- Options Trading: Robinhood allows users to trade options, which offer the opportunity to profit from price movements and volatility of underlying assets. Options trading involves careful analysis and understanding of market trends and risk management strategies.
- Cryptocurrency Trading: The company offers a selection of cryptocurrencies for trading. Users can potentially profit from price fluctuations in popular cryptocurrencies like Bitcoin, Ethereum, and others.
- Dividend Investing: Some stocks listed on Robinhood pay dividends to shareholders. By investing in dividend-paying stocks, users can earn passive income in the form of regular dividend payments.
- Long-Term Investing: Robinhood can be used for long-term investing strategies. Users can build a diversified portfolio of stocks, ETFs, and other investment vehicles with a focus on long-term growth and potential returns.
- Dollar-Cost Averaging: This strategy involves regularly investing a fixed amount of money in specific stocks or ETFs over time. By consistently investing, users can potentially benefit from the average cost of their investments and mitigate the impact of short-term market fluctuations.
It's important to note that investing and trading always carry risks, and there are no guarantees of earning profits. It's crucial for users to educate themselves, conduct thorough research, and consider their risk tolerance and investment goals before participating in any program or strategy on Robinhood or any other investment platform.
Copy trading, which involves replicating the trades of successful investors or traders, is not a feature directly offered by Robinhood. Unlike some other platforms, Robinhood does not have a built-in copy trading functionality where users can automatically copy the trades of other investors.
However, users can still manually observe and learn from the trading strategies of successful investors on Robinhood. The platform allows users to view the portfolios of other users who have chosen to make their holdings public. This can provide insights into the investment choices and allocation strategies of experienced traders.
While manual observation and learning from other investors can be valuable, it's important to note that copying trades does not guarantee profitability. Each investor has different risk tolerances, investment goals, and market conditions that may not align with your own. It's crucial to conduct your own research, develop your own trading strategies, and consider your individual financial situation before making any investment decisions.
If copy trading is an important feature for your trading strategy, there are alternative platforms that specialize in social trading and offer dedicated copy trading functionalities. These platforms allow users to automatically replicate the trades of successful traders or engage in social trading communities where investors can share insights and strategies.
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Conditions
Trading Conditions for Robinhood Traders
Robinhood is known for its user-friendly trading conditions that cater to the needs of traders. One of the key advantages of trading on Robinhood is its commission-free model, allowing users to buy and sell stocks, ETFs, options, and cryptocurrencies without incurring trading fees. This eliminates the burden of transaction costs and makes trading more accessible for investors.
Another notable feature of Robinhood is the ability to trade fractional shares. This means that users can invest in stocks and ETFs with smaller amounts of capital, enabling them to diversify their portfolios and access high-priced stocks that may have been out of reach otherwise.
When it comes to order types, Robinhood offers basic options such as market orders, limit orders, stop orders, and stop-limit orders. These order types allow traders to execute trades at different price levels and implement specific trading strategies to optimize their positions.
While Robinhood operates during regular market hours, it does not support after-hours or pre-market trading. Traders should be aware of these limited trading hours when planning their trading activities.
The company provides access to a variety of markets, including major U.S. stock exchanges, options exchanges, and cryptocurrency exchanges. This allows users to trade a wide range of stocks, ETFs, options contracts, and popular cryptocurrencies.
In terms of research and analysis, Robinhood offers basic market data, news updates, and a simple charting interface. However, it may not provide the same level of in-depth research tools and analysis capabilities as more advanced brokerage platforms. Traders who require extensive research may need to rely on external sources for comprehensive market analysis.
Customer support on Robinhood is primarily available through email and their Help Center. However, phone support is not provided, which may be a limitation for traders seeking immediate assistance or have urgent inquiries.
In summary, Robinhood's trading conditions provide users with commission-free trading, access to fractional shares, basic order types, market access to various exchanges, and basic research tools. However, traders should be aware of the limited trading hours, reliance on external research sources, and the absence of phone support. Consider your individual trading needs, goals, and preferences before choosing Robinhood as your primary trading platform.
| 💵 Currency | USD, limited support for EUR and RUB |
| 💰 Min deposit | From $10 |
| ⚖️ Leverage | |
| 💱 Spread | |
| 💹 Markets | Stocks, Indices, ETFs, Commodities, Cryptocurrencies |
| 📱 Mobile apps | iOS, Android |
| 💵 Replenishment / Withdrawal: | Visa/Mastercard, Bank transfer, Electronic payments |
| 🏦 Broker Type: | ECN, STP |
| 📞 Customer Service | Phone, Chat, Email |
| 👩💼 Support | Multilingual |
| 👨💼 Personal Account Manager | ✅ |
| 🔁 Copy Trading | |
| 🔓 Demo account | ✅ |
| 🗺️ Headquarters | Menlo Park, California, United States |
Risk Warning
Comparison
Comparison of Robinhood with other FOREX Brokers
Broker comparison table of trading instruments
Commissions
Robinhood Accounts, Commissions & Fees
Robinhood offers a simplified fee structure and account options to its users:
- Account Types: Robinhood offers individual brokerage accounts for individual investors. It does not offer joint accounts, custodial accounts, or retirement accounts like IRAs.
- Commission Fees: Robinhood introduced commission-free trading for stocks, ETFs, options, and cryptocurrencies. However, it's important to note that certain regulatory and self-regulatory fees may still apply to certain transactions.
- Deposit and Withdrawal Fees: Robinhood does not charge fees for deposits or withdrawals via standard ACH bank transfers. However, it's important to note that some third-party banks or financial institutions may impose fees for specific transaction types. Users are advised to review their bank's terms and conditions for any potential fees.
- Margin Trading Fees: For users who choose to utilize margin trading, Robinhood charges interest on borrowed funds based on the amount borrowed and the prevailing interest rates.
- Other Fees: While Robinhood does not charge account maintenance fees, inactivity fees, or fees for closing an account, there may be regulatory and self-regulatory fees associated with certain transactions.
It's important to review the official Robinhood website or contact their customer support for the most up-to-date and accurate information regarding commissions and fees, as they may be subject to change.
| Account Type | Robinhood Standard Account | Robinhood Gold Account |
|---|---|---|
| Commission Fees | Commission-free | Commission-free |
| Market Data Access | Basic market data | Level II market data |
| Trading Hours | Regular trading hours | Extended trading hours |
| Margin Trading | Not available | Available with borrowing power |
| Additional Features | Fractional shares, Cash management features | Extended trading hours, Level II market data, Professional research, Instant deposits, Priority customer support |
Please note that the table above provides a general overview, and it's important to review the official Robinhood website or contact their customer support for the most accurate and up-to-date information regarding the different account types and their specific features, fees, and limitations.
Risk Warning
Final review
Detailed review of Robinhood
Robinhood is a popular online brokerage platform that has gained significant attention in the financial industry. One of the key features that sets Robinhood apart is its commission-free trading model. This means that users can buy and sell stocks, ETFs, options, and cryptocurrencies without incurring any trading fees. This makes it an attractive option for cost-conscious traders who want to minimize their expenses.
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The platform boasts a user-friendly interface that is intuitive and easy to navigate, making it accessible for both beginner and experienced traders. With a sleek design and straightforward functionality, Robinhood allows users to execute trades quickly and efficiently. The mobile trading app further enhances convenience, enabling users to trade on the go and stay connected to the markets at all times.
While Robinhood provides a wide range of tradable assets, including stocks, ETFs, options, and cryptocurrencies, it should be noted that the platform has a relatively limited selection compared to some other brokerage platforms. Additionally, the research tools provided by Robinhood are basic in nature. While it offers market data, news updates, and simple charting capabilities, more advanced research and analysis may require the use of external resources.
Overall, Robinhood's commission-free trading model, user-friendly interface, and access to fractional shares make it an appealing choice for many traders. However, its limited asset selection, basic research tools, and customer support may not meet the needs of more advanced or demanding traders. It is important for individuals to carefully consider their trading goals and preferences before choosing Robinhood as their primary brokerage platform.
Advantages:
Robinhood Regulator
Financial Industry Regulatory Authority (FINRA)
Financial Industry Regulatory Authority (FINRA): FINRA is a self-regulatory organization that oversees brokerage firms and registered brokers in the United States. They set rules and regulations for member firms and enforce compliance to protect investors' interests. FINRA monitors and regulates aspects such as sales practices, trade execution, and market integrity.
Regulator website: Financial Industry Regulatory Authority (FINRA)
Securities Investor Protection Corporation (SIPC)
Securities Investor Protection Corporation (SIPC): SIPC is a nonprofit corporation that provides limited protection to customers of brokerage firms in case of broker-dealer failure or insolvency. It helps to recover assets held by the broker-dealer and provides coverage for up to $500,000 per customer, including up to $250,000 in cash.
Securities and Exchange Commission (SEC)
Securities and Exchange Commission (SEC): The SEC is the primary regulatory body overseeing the securities industry in the United States. They enforce securities laws and regulations to protect investors and maintain fair and orderly markets. While Robinhood is not a registered exchange, the SEC may still have oversight over certain aspects of its operations.
Risk Warning
Promotions
Bonuses Paid by the Robinhood
While Robinhood does not currently offer explicit welcome bonuses or promotional offers, they do have a referral program available for users. With the referral program, existing users can invite friends to join Robinhood, and both parties have the opportunity to earn a free stock when the referred friend's new account is approved.
It's important to note that bonus programs and promotional offers can vary over time, and the availability of such programs may change. Therefore, it's always recommended to keep an eye on the official Robinhood website or contact their customer support for the most up-to-date information on any current bonus programs, promotions, or special offers that may be available.
By regularly checking the official website, users can stay informed about any new features, programs, or promotional opportunities that Robinhood may introduce in the future.
Education
Review of the Robinhood Education Program
Robinhood provides a limited educational program designed to help users understand investing basics and navigate their platform. The educational resources offered by Robinhood include:
While these educational resources can provide a basic understanding of investing concepts, they may not offer in-depth analysis or comprehensive educational material suitable for advanced traders or investors. Traders and investors seeking more detailed education may need to rely on external sources, books, courses, or professional advice to enhance their knowledge and skills.
It's important to note that the educational resources provided by Robinhood should serve as a starting point for beginners and not a substitute for thorough research and understanding of the risks and complexities of investing. Users are encouraged to conduct their own due diligence and seek additional educational resources to develop a well-rounded investment knowledge base.
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Rating and Comments
Robinhood Users Reviews 2024
Authors:
Roman Mukhin
Financial expert, analyst and author
Jane Emberg
Financial analyst and editor
One of Robinhood’s main drawbacks is its limited customer support. While the platform provides a help center and email support, the lack of phone support can be frustrating, especially when urgent help is needed. In my experience, email responses have sometimes been slow, which can be inconvenient when dealing with urgent questions. Improved customer support capabilities would greatly improve the overall user experience.
Robinhood’s limited selection of investment options is both a positive and negative aspect. On the one hand, it simplifies and simplifies the platform, especially for new investors. On the other hand, more experienced traders may find the lack of advanced features and sophisticated investment products a limiting factor. While this platform cannot offer the same level of sophistication as some other platforms, it satisfies those looking for simplicity.
I must say that their user-friendly interface is the main advantage. The app is intuitive and easy to navigate, allowing even beginners to start investing. In addition, the commission-free transactions are spot on. Being able to buy and sell stocks, ETFs and cryptocurrencies without any trading fees has greatly reduced my overall costs.
The fractional share feature at Robinhood is a particular benefit. It allows me to invest in expensive stocks that would not otherwise be available. With fractional stocks, I can diversify my portfolio and invest smaller amounts in companies I believe in. This feature has given me the ability to build a well-balanced portfolio even with limited funds.