Robinhood Review
Broker: Robinhood
Regulation: SEC
Min. Deposit: 0 US$
HQ: USA
Platforms: Robinhood Platform
Found In: 2013
Website: eightcap.com
Robinhoodrobinhood.com Licences
Robinhood Securities, LLC is authorized by SEC (USA), registration number 8-69916
Who is Robinhood?
The broker was established in 2013, and has been a leading provider of trading services in the US. Robinhood is only available in the US. However, Robinhood plans to open branches abroad and attract more investors.
This is a great trading opportunity. Previously, most Americans could only trade with offshore entities. We don't recommend them because they lack reliability and regulation.
Overview
Robinhood, a US-based broker is very popular. It has a fresh approach to trading and a new vision on user experience. Robinhood has also developed a strong brand.
Pros
Free US stock and ETF trading
Great mobile and web trading platforms
Fast and fully digital account opening
Cons
Limited product range
Weak customer support
Few educational materials
Rating of the company overall
Reliability ⭐⭐⭐⭐⭐
Platform ⭐⭐⭐⭐
Commissions ⭐⭐⭐⭐
Support ⭐⭐⭐⭐
Financial instruments ⭐⭐⭐⭐⭐
RATING: 4.4
Is Robinhood a scam or safe?
Before deciding to put any money in the broker's account or whether to trade with them, this is the first question that any trader needs. Safety is always the top priority. In fact, only the regulatory status of the broker can guarantee you a safe trading environment.
This means that the broker licensed by the relevant authority in the jurisdiction has been checked on time before it launches, observed how trading is conducted and overall service delivered. If the company fails to follow safety guidelines, they can be fined.
Robinhood will have all of the operational standards mentioned above. Robinhood is a trading term used by Robinhood Securities LLC. It is regulated by both the U.S. Securities and Exchange Commission (The Securities and Exchange Commission) and the self-regulatory organization FINRA.
What can you do to be protected?
We recommend only trading on regulated exchanges. Robinhood operations are strictly monitored and adhere to international safety standards.
Robinhood LLC is a member of FINRA and falls under the US investor protection program, The Securities Investor Protection Corporation (The SIPC). The SIPC compensation limit is $500,000, with a $250,000 cash limit.
The broker doesn't offer negative balance protection.
Types of accounts
There are many account types available to the broker. First, you'll be given a standard Robinhood instant account. You can upgrade to Robinhood Gold and Robinhood Cash accounts once you have enrolled.
Robinhood Gold
Robinhood Gold offers a powerful suite of tools, data and features that will help you take your investing to the next step. You can access four premium features with Gold: larger Instant Deposits, professional Morningstar research, Level II market data, and margin investing. Gold can be tried for free within the first 30 days. The $5 monthly fee is waived.
Cash management
Cash Management is a service that you can access through your brokerage account. You'll be issued a debit card2 by Sutton Bank. Your debit card, routing, and account numbers can be used to pay bills, buy groceries, send checks and many other things. Uninvested brokerage cash goes to the broker's network banks, where it begins earning 1.00% annual percentage yield.
Cash Management does not accept new customers at the moment.
Trade Instruments
Robinhood has many products that can be traded so every trader can find the right instrument for them. These include stocks, options, ETFs and cryptocurrencies. All assets mentioned are available without commission to investors and traders professionals.
Robinhood is one broker that allows crypto trading without commissions. This trading opportunity certainly earns you extra points. Robinhood traders have the option to buy cryptos from their stock trading accounts. This allows them to get competitive pricing.
Fees
Robinhood is a broker that offers commission-free US stock trading and ETF trading. It also does not charge per-contract fees for options trading. You don't have to open an account, withdraw money, or be inactive.
Robinhood is charged a small commission for orders sold by self-regulatory organisations (SROs), such as the Financial Industry Regulatory Authority. These fees are charged for all sales orders regardless of brokerage. Robinhood charges these fees to its customers, and then remits them the appropriate SROs.
Withdrawals and deposits
Robinhood traders can only deposit via bank wire transfer. The only deposit method available to Robinhood traders is bank wire transfer. Instant Deposit made things a lot easier and quicker for the broker. Instant Deposit gives traders instant access to $1,000 once they make a deposit.
Robinhood Gold allows them to make even larger Instant Deposits, up to $50,000, depending on their brokerage account balances and status.
Robinhood minimum deposit
Robinhood offers a variety of tailored solutions that allow you to make no minimum deposit.
Robinhood Minimum Deposit vs Other Brokers
Robinhood withdrawal fees
Broker doesn't charge withdrawal fees. Robinhood only offers Bank Wire. The broker also mentions that clients are responsible for any charges incurred upon money transfers, which typically run between $25 and $50.
Trade Platforms
Web Platform
Robinhood is a powerful but easy-to-use, yet simple-to-use web trading platform that includes research and discovery tools. Every trader will benefit from the extensive research and discovery tools. The web platform offers many advanced features, such as Analyst Ratings, News and Fundamentals, and Collections of Stocks.
Mobile platform
The mobile trading platform also has many features such as customizable alerts and news feeds. You can also listen to earnings calls live from your smartphone. This feature is available on both Android and iOS devices.
Broker's offer does not include a desktop trading platform.
Customer Support
Robinhood's customer service options are very limited, and many users consider it a disadvantage. Email and social media are the main channels of communication. You can also make in-app requests, but they are not available 24/7. The support team is quick to respond and very helpful.
Education
The Education section is only for beginners. Robinhood claims that education is key to financial empowerment. However, it doesn't provide enough material. The Robinhood Learning section offers hundreds of articles about investing basics, market trends, and investing lingo. This is all there is to it in terms of education on the platform.
Conclusion
Robinhood Review revealed a company with a solid background that offers a competitive trading platform. However, readers need to consider the drawbacks and the trader experience. The lack of educational materials makes it difficult for beginners to use the broker. Some experienced brokers may find that the platform lacks important analytical tools. For curious investors, however, the unusual vision and nature of the broker can be a benefit.