Robinhood an online trading app has gained a lot of attention in the last two years or so. The feature which distinguishes it from the rest is the fact that it is free of cost for all. It is a commission free investing app. With Robinhood, users are able to make unlimited trades in costs and ETFs. They can also buy and sell crypto currency through Robinhood Crypto. These unique features make this app one of its kind and a pioneer in the industry.
Robinhood was initially targeted at the U.S. clients but due to its popularity, it was further expanded into Australia as well. Further expansions into Europe are under discussion. Since its launch Robinhood has gained around $176 million.
For a standard account, there is no requirement of an initial deposit in this app. But if the account is a Gold Margin Account then there is a need of $2000 regulatory minimum. Apart from the deposit, there must be enough amounts of cash to buy one of the stock, shares, or ETF. Since opening a standard account is free of cost, it is extremely feasible for anyone looking to make an investment.
There is zero commission on in-application trades for the users. No other apps or platforms have ever offered this kind of service before. Robinhood has a very transparent monthly fee setup for the users. This fee depends upon the equity borrowed. There are no hidden charges either.
To further make things even more convenient for users, Robinhood has a mobile app as well. This app can be easily downloaded in a few minutes. Most of their trading features are offered on the mobile version as well. Both Apple Store and Google Play have this app available.
Regulations and Licenses
One of the major concerns of all trade brokers is that whether their platform is licensed and regulated. Robinhood has license with FINRA and SIPC. SIPC ensures an insurance of around $500,000 per client.
Robinhood follows the trading hours of the asset trade that is being made. General trade market is followed for this purpose. But if a user has a Robinhood Gold account, they can start trading 30 minutes before the start of trading hours and continue until two hours after closing hours.
- Ease of Use: It is an extremely easy to use app. The UI is very straightforward. A layman can easily understand its workings.
- Minimal Cost: As mentioned before there is a minimum fee at the beginning. In the world of stock exchange, this price is next to nothing for trade business.
- Free Bank Transfers: With limited capital in the start, this is the most appealing feature of Robinhood app.
- Limited Research: Robinhood offers minimum to no research tools and analysis. Due to this traders lack the tools to move forward and polish their skills.
- Negative Buying Power: Robinhood Gold can make its users have a negative balance account. This can cause problems and require extra funds to be submitted.
- Basic Charts: The charting packages offered at Robinhood are very basic as compared to its competitors. This takes out a lot of appeal from the app as charts are a crucial part of any trading business analysis.