Robinhood is a brokerage investment app that offers trading services without charging any commission and does not require a minimum balance to operate. After opening an account, all you need is linking it to your bank account where the funds will be pulled from and you can begin trading in stocks.
All you need to do is to type the particular stock you are interested in and either place it on the ‘observe list’ or directly buy the shares. You will be able to know the cost of the shares through the homepage of the company and also get to know the trending news concerning that particular stock.
After completing the purchase, you will have the option of buying more shares or selling the shares you already have.
Once you join Robinhood, you will have the advantage of getting an extra random share if you refer a person to register with this app and the person you refer will also get a free share.
Robinhood App is best for those who are knowledgeable in the stock market and their only interest is to trade without paying a commission. It does not provide any room for research or analyzing the stock market as you only key in the share you are interested in and you will be directed to the company’s profile.
- You will not have to pay any commission for using the services
- No minimum balance is required to open the account; once you set up the account and connect it to your bank; you are free to start trading.
- Once the sale of Stocks or Exchange Trade Funds is complete, the funds are immediately made available to reinvest
- Robinhood App is not available on the web and you can only access it via Smartphone
- New investors will not get much from this app as it does not have a custom-made portfolio according to individual needs. It is for those who have an experience in the stock market and knows exactly what they want.
- The app does not give adequate information when there is market volatility as a way of assuring investors. You have to get all the information on your own.
- You can only trade in stocks and Exchange Trade Funds (ETFs). Trading in warrants, mutual funds or even OTC securities is not allowed and you have to get another platform for these.
- You cannot transfer assets for an existing brokerage to the Robinhood App. This is however bound to change soon.
Robinhood App is a great way to trade in stocks as you only require having enough cash to purchase a single share and your journey into the stock market begins. You will not be charged any fee; neither will you have to wait for long to reinvest after selling your stocks. However, this may lead to bad investment as you may make a rushed decision to invest and end up putting your money where you may lose your investment. Robinhood App is suited for the experts in the trade market who know exactly how the market goes.