Robinhood: Review, Analysis and Complete Guide
In the last decade, new online brokers have emerged, among which Robinhood has stood out in a notorious way. Since its inception in 2013, the broker continues to increase its flow of clients day after day (reaching ten million) and gathering very good opinions.
Although it is a new broker, Robinhood is leaving other brokers with more experience by the way. In its beginnings, the platform stood out for not charging commissions on ETFs, options and shares operations.
However, when new brokers began to imitate this modality of not charging commissions, Robinhood decided to go one step further. In this way, the company decided to stand out above the others by offering operations in bitcoins and other cryptocurrencies for free.
In the following article you will find everything about this innovative broker. You will find not only the pros and cons, the products it offers, but also how the platform works . It is important to note before reading that Robinhood does not allow Forex trading.
Robinhood Review Reddit
Pros and cons of Robinhood
Pros
- The broker's platform is fully transparent and regulated.
- Possibility of trading with cryptocurrencies (Bitcoins, Ethereum and Dogecoins).
- By inviting a friend to the broker you both earn a free share.
- Trading platform specially designed for mobile devices.
- You do not need to make a minimum deposit to open an account.
Cons
- You cannot trade bonds, mutual funds, or Forex.
- Customer service is exclusively by email.
Robinhood Financial Products
- Depository Receipts: Through Robinhood it is possible to invest in depository receipts in the United States for 250 international companies.
- Options: with Robinhood you can trade options without any commission. You can invest through the platform, choosing the company that you consider most appropriate. If you are an experienced trader, you can also choose which strategy to use.
- ETFs: The great attraction of investing in Robinhood is that it does not charge any commission for available ETFs. You will be able to invest in the exchange-traded funds of a large number of US companies.
- Stocks: Robinhood allows you to invest in the most important companies worldwide, without charging commissions. Through this broker you can invest in Amazon, Tesla, Apple, Microsoft Corp., Eastman Kodak Co, Pfizer and Moderna, among others.
Robinhood allows you to invest online Cryptocurrencies
Robinhood is one of the brokers most recommended by users who trade cryptocurrencies. The great advantage that this broker offers over others is that it does not charge any commission to operate with Bitcoins and Ethereum, among others.
The other great advantage that Robinhood has, is that it is possible to operate with very low amounts of Bitcoins or Ethereum.
This is a radical difference with other brokers that establish a minimum amount to operate with cryptocurrencies.
In addition, Robinhood has a special program called “Robinhood Crypto”. Through it, you can buy and sell Bitcoins , Dogecoins and Ethereum every day of the week, 24 hours a day. Always in a transparent and secure way.
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Types of Trading Accounts
Robinhood offers the public only two accounts. Whether with the standard or premium account, all transactions remain commission-free. The main difference is that the premium account called “Robinhood Gold” has more tools and benefits.
The “Gold” account costs nothing more and nothing less than 5USD per month. For this modest price, the user has access to the Morningstar, to operations with a margin of 5% annual interest and to NASDAQ level II quotes.
How to Open an Account at Robinhood
To start trading at Robinhood it is necessary to open an account in the client's name. It is a truly simple process, in which you simply have to provide your personal information and wait for the broker to confirm it.
One of the great advantages that Robinhood offers is that it is not necessary to make a minimum transfer to open the account. However, if you later want to move to Robinhood Gold, you will need to place the transfer order and start paying $ 5 per month.
Requirements and Verification
To open an account at Robinhood, the first step is to download the mobile application . It can be found for iOS and Android operating systems. Once the app is downloaded, you simply have to send a request to open an account.
Once the application for account opening has been sent, it is necessary to wait one business day to receive confirmation of the approval of the application.
In the absence of certain data in the request, Robinhood may request more information from the user by email.
In the event that the broker requires an identity document, they will send the user instructions to be able to upload the documents in a secure way.
Based on customer feedback, the broker requires approximately five to seven days to complete the identity verification.
On the other hand, Robinhood demands certain requirements to be fulfilled by its future clients. You must be 18 years old and have a valid social security number. You must also be a legal resident of the United States.
Demo account
Currently there are many brokers that offer a demo account so that the user can experience the trading platform.
This is not the case with Robinhood, since it allows you to open an account for free and does not charge commissions on transactions, not even for bitcoins.
While it is always advisable to start with a demo account, Robinhood offers many advantages.
By not demanding a minimum initial transfer, or charging commissions, you can start investing in this broker in a safe and simple way as in a demo account.
Robinhood Available Countries
In order to invest in bitcoins and trade stocks and ETFs at Robinhood, you must be a legal resident of the United States or Puerto Rico. The only way to operate Robinhood in other countries is by being an active US military living abroad.
The broker had set out to expand its clientele to the United Kingdom, although unfortunately this purpose could not be carried out. Although it is not yet known when this project will be able to continue, the truth is that it is a pending task.
How to Use Robinhood Broker
Robinhood is a broker that is committed to bringing a young sector of the world's population into the world of trading. In this sense, it is a very simple and intuitive platform to operate, without the need for great knowledge.
In order to invest through Robinhood, it is only necessary to have access to the Internet . It is possible to operate both from the desktop computer and from smartphones and tablets. However, the mobile application has greater advantages.
Desktop Platform
For those who wish to trade Robinhood from a desktop computer, they simply have to access the broker's website . Unlike other brokers, Robinhood does not use the classic trading platforms.
Robinhood Trading Platforms
Although Robinhood does not have a special platform for desktop computers, user reviews indicate that it adapts very well to the needs. Easy and efficient when investing, with the Robinhood web interface you can carry out all your transactions.
Mobile Platform
Robinhood is a broker that emphasizes new technologies, as it targets an audience born in the nineties.
For this reason, the broker has a much more sophisticated application for smartphones and tablets than the online platform for computers.
The Robinhood application for trading is available for both the iOS and Android operating systems . It is very easy to use since it is designed to be able to operate from anywhere in the world and at any time.
In this way, with the Robinhood mobile application it is possible to switch from one screen to the other, while placing orders and researching stocks.
You will be able to obtain all the details of the actions without delay and without problems , as well as buy and sell bitcoins.
Research and Visualization Tools
Although Robinhood is a broker for young people with little training, user opinions agree that it should upload more educational content. However, the broker's website has a lot of written information and useful tutorials.
The platform with which Robinhood operates is really easy to use. According to some opinions, it could have more sophisticated graphics. However, its intuitive and simple design is intended to give the user the ability to execute investments quickly , without wasting time.
Robinhood analysis and research tools
It is important to note that Robinhood is a broker created for young people. This means that the platform is oriented to be used from smartphones and tablets. The ability to create customizable alerts and access live earnings calls only exists through the app.
Regarding the research section, Robinhood Snacks is the informative section that is updated every three minutes, so that you are up to date with the latest news. In this way, you can buy and sell at the most appropriate time, and thus protect your investments.
On the other hand, Robinhood offers the option of contracting its premium service . By purchasing Robinhood Gold for just $5 per month, the client will have access to NASDAQ Level II Market data and Morningstar Research Reports.
Robinhood Deposits, Withdrawals, Fees and Limits
Deposit Methods and Minimum Deposit
The avenues to get money into Robinhood are still very limited. Unlike other brokers that offer the client various modes of deposit, Robinhood only accepts bank transfers.
While it is possible to trade bitcoins, digital wallets are not yet incorporated by the company.
However, the advantage of this trading broker is that it is not necessary to make a minimum deposit to open an account. That's right, as strange as it may sound, Robinhood does not require its clients to make a minimum transfer to start investing.
Withdrawal Methods
As to deposit money in the broker, the withdrawal of money can only be carried out by bank transfer. Unfortunately they have not yet incorporated other methods. However, the bank transfer continues to be treated in a safe and reliable way for any customer.
Fees and Commissions
Robinhood is a broker that stood out in its origins precisely for not charging fees or commissions . The only thing that has to be paid when using this platform is the “Robinhood Gold” account service, for only 5 USD per month.
While Robinhood does not charge fees for transactions in ETFs, options and stocks, it does charge for trading on margin. This is a 5% annual commission on stocks and options.
Limits
Robinhood has a limit for both entry and withdrawal of funds. In both cases, the limit set by the broker is $50,000 per business day.
Is Robinhood Safe?
Regulation
Before you start investing in a broker, it is essential to be sure that it is a secure site. As much as a site seems too good for its promotions for trading, it is essential to confirm that it is under the supervision of competent authorities .
In this case, Robinhood is regulated by the Securities and Exchange Commission (SEC). In turn, the broker is attached to the Financial Industry Regulatory Authority (FINRA).
Compensation Scheme
Like all insurance brokers, Robinhood has investment insurance for its clients. In this sense, in case any misfortune should happen, the money is protected by the Securities Investor Protection Incorporation (SIPC).
This bankruptcy insurance consists of $500,000 in securities and $ 250,000 in cash . It should be noted that operations in cryptocurrencies such as bitcoins and ethereum are not protected in one hundred percent of operations.
Customer service
Many of the advantages that Robinhood presents, such as the absence of commissions and the possibility of trading bitcoins for free, lie in its innovation. In this sense, to offer so many benefits, the company has a somewhat reduced structure.
So much so, that customer service can only be done through email or social media. There are no telephone operators in Robinhood as it is a broker focused on pleasing young millennials.
At this point they confront a bit the opinions of the users. On the one hand, there are those who consider the possibility of communicating by telephone to be essential.
On the other hand, there are the opinions of those who believe that any query and / or inconvenience can be solved via email.
Robinhood customer reviews
One of the best methods to know if it is convenient to invest our money is to listen to the opinions of customers. User experience is always a point to take into account before making any investment, as it can give us a complete idea of how the broker works.
Customer opinions proveided by Robinhood
Christine O. has described her experience as follows: “From the first second I have been captivated by Robinhood. It is a very friendly platform for young people without much knowledge in finance. I love trading bitcoins without being charged any commission. "
Mike A. has recounted his time in Robinhood with these words: “If you are young and want to start trading, you have found the right broker. Robinhood presents very interesting products when it comes to ETFs and options. I hope that one day Forex can be traded ”.
Alexander M. has also left his opinion: “For such a new broker, it offers certain unbeatable services. My weakness is cryptocurrencies, and I feel very comfortable being able to trade bitcoins and dogecoins in a safe way and without commissions . "
Robinhood Alternatives and Competitors:
Although Robinhood is a broker with very interesting characteristics, there are also other brokers to consider when trading. Just as Robinhood specializes in trading cryptocurrencies such as bitcoins, there are specialized Forex brokers.
The best thing to do before you start investing in trading safely is to take a look at all the available options. In the next list you can find the best alternatives for trading stocks, bitcoins, Forex, bonds and CFDs:
Robinhood Review Reddit - Conclusion
Finally, it is notable that Robinhood is an innovative broker that has established a new paradigm in the world of finance.
The commitment of its creators to expand trading towards the youth sectors is reflected in the absence of commissions and the simplicity of use of the platform.
Being a broker that does not require minimum accounts or charges commissions, access to invest in trading expands to new audiences.
In this way, it is possible to start taking the first steps in trading and cryptocurrencies without making minimum deposits or paying for transactions.
While the mobile app has customizable alerts, a news feed, and other benefits, the study tools could get even more sophisticated. It is true that the simplicity of the app allows a fast performance and also meets all the requirements.
On the other hand, customer service is only via email. In turn, the deposit methods are only through bank transfer and Forex trading is not allowed. Even so, it is still an excellent broker for young people interested in learning about trading.
Official website: www.robinhood.com
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Frequently Asked Questions about Robinhood
✅What is Robinhood Broker Online?
Robinhood is a relatively new broker that emerged with the aim of inserting young people into the financial market. Robinhood's goal is to guarantee everyone access to trading activities , and that is why it does not charge commissions on transactions.
⭐ How does Robinhood work? How can I use it?
Robinhood is a trading broker that works through a web platform . Its design is very simple to guarantee access to all those who wish to gain insight into the world of financial transactions.
To invest through the Robinhood platform, you only need access to the Internet . This is so because the broker has an application for mobile phones and tablets. At the same time, it is also possible to operate from an ordinary computer.
➡Is it Possible to Invest in Bitcoins and the Forex Market in Robinhood?
Using the Robinhood platform, it is possible to safely invest in cryptocurrencies such as bitcoin. In fact, it is one of the best brokers to operate with bitcoins since it does not charge commissions of any kind and allows you to trade with very small amounts.
However, Robinhood does not yet allow currency trading on Forex. If your goal is to trade Forex, unfortunately you will have to find another broker that does allow it.
✨ How to Make Money in Robinhood?
According to the opinions of users, when one operates in Robinhood in a certain way it is already making money, since there are no commissions . The broker allows trading ETFs, stocks, options, and cryptocurrencies such as bitcoin.
For this, to make money with Robinhood you have to select which product to invest in. The opinions of the broker's clients assure that it is very convenient to invest in bitcoins since the broker does not charge fees in this regard.
➕ Is Robinhood a Safe Broker to Trade and Invest?
When it comes to investing our money, it is essential to do it in a safe way. In this sense, Robinhood is a broker insured by the Securities Investor Protection Incorporation (SIPC).
In a freak case where Robinhood was forced to pay back its investors, clients have the backing of SIPC. Thus, in the event of bankruptcy, the client is insured for $ 500,000 in securities and $ 250,000 in cash.
🔥 Is Robinhood Regulated?
Robinhood is a broker that is duly regulated by the Securities and Exchange Commission (SEC). In turn, it is also supervised by the Financial Industry Regulatory Authority (FINRA), and therefore, its activity is subject to its regulations.
⚡️ What other Alternatives are there?
- Forex.com
- eToro
- Plus500
- XM
- xtb
- IG Markets
- CMC Markets
- 24option
- AvaTrade
- RoboForex
- FxPro
- wikifolio
- Admiral Markets
- ActivTrades
- iTrader
- GKFX
- CapTrader
- Dukascopy
- ETX Capital
- ZuluTrade
- LYNX Broker
- Trade.com
- LMAX
- QTrade
- IronFX
- FXFlat
- Varengold
- ROTATION
- FXCM
- FXTM
- IC Markets
- OANDA
- Robin Hood
- TRADING212
