They can buy and sell stocks, options, a fewĬryptos, and exchange-traded funds (ETFs). Robinhood provides users with basic stock trading functions. They have no brick-and-mortar locations to keep their operating costs low. Robinhood’s claim to fame is that its users can trade stocks without paying commission fees. While this option serves toĬreate a stockpile in a user’s account so that trades can be made immediately when the price is right and eliminates the wait time for bank transfers, it can tie Users have the option to automatically transfer money from their bank accounts weekly, bi-monthly, monthly or quarterly. To combat this, Robinhood has a feature to set up reoccurring bank
Wait an additional three business days for money to transfer back into their bank accounts. When selling stock, customers must wait for the money to settle. Transfers from bank accounts can take up to threeīusiness days to become available for use. One of the largest complaints about Robinhood is the time that it takes for money transfers to become available. Another RobinhoodĬon is that there is no advanced trading platform or any investment research tools. One major Robinhood con is that most functionality is done only on the app. Customers seeking these options may be better off using a Forget about mutual funds,įoreign stocks, bonds, forex, futures, etc.įor customers focused on investing money for retirement, Robinhood only offers taxable personal investmentĪccounts. Only stocks, options, a few cryptos, and exchange-traded funds (ETFs) are available. The app’s bare-bones model leaves little room for more advanced tools that serious investors expect
Get one FREE stock when you open an account.
The few advanced features on the app, this service gives an investment edge to frequent traders that was not previously available through the platform.Īnother Robinhood pro is that while it was initially designed for use on smart phones and was already available on iOS and Android, they have also created apps specifically for the iPad and Apple Watch, allowing even easier access to stock trades on the go. Hours, instant access to fund transfers, and allows users to increase their buying power by leveraging margin accounts, all for an additional monthly fee. Robinhood Financial has launched a new service called Robinhood Gold which gives members extended trading There is also no minimum deposit requirement to open an account, making stock investing accessible to even the newest and most cautious investors. This decreases costs for both those looking to profit from frequent trades and those looking to build wealth Trades that used to cost upwards of $5-10 each can now beĮxecuted for free. Model is the single largest draw to the platform.
Robinhood investing pros and cons, benefits and downsides. Pros and Cons of Robinhood Investing App (2022)