Robinhood: Stocks & Crypto is a popular mobile trading app available for Android devices. The app allows users to invest in stocks, ETFs, options, and cryptocurrencies commission-free. It has received both praise and criticism in the finance world for its unique business model of making money from interest on customer funds rather than charging fees. In this review, we will take an in-depth look at Robinhood's features, pros, and cons, as well as compare it to similar apps on the market.
Features
Commission-free trading of stocks, ETFs, options, and cryptocurrencies
Access to real-time market data and news
Customizable watchlist and alerts
Easy fund transfers between bank accounts and Robinhood account
Simple and intuitive interface
Commission-Free Trading
Robinhood's most prominent feature is its commission-free trading model, which differentiates it from traditional brokerage firms. This feature appeals to users seeking low-cost investing options, especially those who want to make frequent trades. Without fees, investors can see additional returns on their portfolio compared to paying for commissions.
Real-Time Market Data and News
The app provides real-time market data and news to help users stay informed when making investment decisions. The data includes current stock and cryptocurrency prices, trading volume, and historical performance charts. Additionally, users can customize their newsfeed to follow market insights that align with their interests.
Customizable Watchlist and Alerts
Robinhood makes it easy to track investments by providing a customizable watchlist that users can set up with their favorite stocks or cryptocurrencies. Moreover, they can create alerts based on price changes and market movements. These features provide users peace of mind knowing that they stay informed about their investments without continually watching the market.
Fund Transfers
It's simple to add funds to the app, as Robinhood allows easy transfers between linked bank accounts and Robinhood accounts. There are two ways to transfer funds into your account: through an instant deposit or standard bank transfer. An instant deposit is a fee added to transactions for users who want immediate access to their funds. Bank transfers are free; however, they take five business days to complete.
User Interface
The app's user interface is intuitive and easy to use. On the home screen, users can access their investment portfolios, watchlist, and market news. The app's simplicity and straightforward design cater to beginners in investing; however, it may lack the advanced features that seasoned investors look for in trading apps.
Pros and Cons
Pros
Commission-free trading saves money for frequent traders
Real-time market data and news keeps users informed
Customizable watchlist and alerts provide convenience
User-friendly and intuitive interface
Cons
No access to mutual funds or bonds
Customer support is limited to email only
Some concerns regarding app stability and security
Margin trading carries significant risks and needs prior knowledge
Limited Investment Options
Robinhood only offers trading of stocks, ETFs, options, and cryptocurrencies, prohibiting users' access to mutual funds and bonds. This allows for fewer investment choices that investors with a wide variety of strategies may find restrictive.
Customer Support
Robinhood's customer support is limited to email only. There is no phone number or live chat available to resolve any issues promptly. Customers with urgent matters may face delays in communication responses, hindering their ability to make trades efficiently.
Security Concerns
The app experienced a security issue a few years ago, which caused concern in some users. Although Robinhood claims to have resolved the problem, investors should still take necessary precautions when using the app.
Margin Trading Risks
The app allows margin trading, which means purchasing securities with borrowed money, but it carries significant risks. Margin trading requires prior knowledge in the field and should only be attempted by experienced and educated investors.
Comparison to Similar Apps
In terms of commission-free trading, Robinhood is notable compared to other finance apps such as E-Trade, TD Ameritrade, and Charles Schwab. However, these platforms are known for their robust research tools and educational resources, which Robinhood doesn't offer. Additionally, competitors like Webull, SoFi Invest, and M1 Finance currently offer similar features as Robinhood with added perks such as fractional trading, free stock rewards, and cashback credit cards.
Tips for Using the App
Read about your investments before making a trade.
Use limit orders instead of market orders to protect yourself from rapid price changes.
Keep an eye on the fees and rates associated with going margin.
Setup automatic investments to a Robinhood account to see savings increase over time.
Conclusion
Overall, Robinhood: Stocks & Crypto is a suitable choice for beginners who want to invest in stocks and cryptocurrencies commission-free. Users benefit from the app's user-friendly and intuitive design, real-time market data and news, and customizable watchlist and alerts. However, advanced users that seek knowledge resources or options beyond what Robinhood offers might be better suited with other brokerage apps. Furthermore, despite some security concerns and customer support limitations, Robinhood remains an excellent choice for those looking to make frequent trades without paying fees or high minimum investments.
Updated 05-15-2023
Overview
Robinhood: Stocks & Crypto is a popular mobile trading app available for Android devices. The app allows users to invest in stocks, ETFs, options, and cryptocurrencies commission-free. It has received both praise and criticism in the finance world for its unique business model of making money from interest on customer funds rather than charging fees. In this review, we will take an in-depth look at Robinhood's features, pros, and cons, as well as compare it to similar apps on the market.
Features
Commission-Free Trading
Robinhood's most prominent feature is its commission-free trading model, which differentiates it from traditional brokerage firms. This feature appeals to users seeking low-cost investing options, especially those who want to make frequent trades. Without fees, investors can see additional returns on their portfolio compared to paying for commissions.
Real-Time Market Data and News
The app provides real-time market data and news to help users stay informed when making investment decisions. The data includes current stock and cryptocurrency prices, trading volume, and historical performance charts. Additionally, users can customize their newsfeed to follow market insights that align with their interests.
Customizable Watchlist and Alerts
Robinhood makes it easy to track investments by providing a customizable watchlist that users can set up with their favorite stocks or cryptocurrencies. Moreover, they can create alerts based on price changes and market movements. These features provide users peace of mind knowing that they stay informed about their investments without continually watching the market.
Fund Transfers
It's simple to add funds to the app, as Robinhood allows easy transfers between linked bank accounts and Robinhood accounts. There are two ways to transfer funds into your account: through an instant deposit or standard bank transfer. An instant deposit is a fee added to transactions for users who want immediate access to their funds. Bank transfers are free; however, they take five business days to complete.
User Interface
The app's user interface is intuitive and easy to use. On the home screen, users can access their investment portfolios, watchlist, and market news. The app's simplicity and straightforward design cater to beginners in investing; however, it may lack the advanced features that seasoned investors look for in trading apps.
Pros and Cons
Pros
Cons
Limited Investment Options
Robinhood only offers trading of stocks, ETFs, options, and cryptocurrencies, prohibiting users' access to mutual funds and bonds. This allows for fewer investment choices that investors with a wide variety of strategies may find restrictive.
Customer Support
Robinhood's customer support is limited to email only. There is no phone number or live chat available to resolve any issues promptly. Customers with urgent matters may face delays in communication responses, hindering their ability to make trades efficiently.
Security Concerns
The app experienced a security issue a few years ago, which caused concern in some users. Although Robinhood claims to have resolved the problem, investors should still take necessary precautions when using the app.
Margin Trading Risks
The app allows margin trading, which means purchasing securities with borrowed money, but it carries significant risks. Margin trading requires prior knowledge in the field and should only be attempted by experienced and educated investors.
Comparison to Similar Apps
In terms of commission-free trading, Robinhood is notable compared to other finance apps such as E-Trade, TD Ameritrade, and Charles Schwab. However, these platforms are known for their robust research tools and educational resources, which Robinhood doesn't offer. Additionally, competitors like Webull, SoFi Invest, and M1 Finance currently offer similar features as Robinhood with added perks such as fractional trading, free stock rewards, and cashback credit cards.
Tips for Using the App
Conclusion
Overall, Robinhood: Stocks & Crypto is a suitable choice for beginners who want to invest in stocks and cryptocurrencies commission-free. Users benefit from the app's user-friendly and intuitive design, real-time market data and news, and customizable watchlist and alerts. However, advanced users that seek knowledge resources or options beyond what Robinhood offers might be better suited with other brokerage apps. Furthermore, despite some security concerns and customer support limitations, Robinhood remains an excellent choice for those looking to make frequent trades without paying fees or high minimum investments.