Robinhood App Review 2019: The Easy To Use Free Stock Trading App

May 28, 2019

In today's Robinhood app review, we're breaking down the commission-free stock trading app that lets you buy and sell stocks and ETFs from your phone or desktop. But while Robinhood saves you a lot on commissions they do lack a bit in research offered and other areas as well. I’ll be breaking down all the features of Robinhood, discussing it's pros and cons, and explain who I think this app is most ideal for. 

Check out our Robinhood app review below and and see how it compares to today's top investing apps here.


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Our Rating


☑️ Quick Summary ☑️

- 100% commission free stock trading app  
- Invest in thousands of individual stocks and ETFs
- No account minimum to get started
- Advanced order types (market, limit, stop loss, stop limit)
-  Can also trade cryptocurrency (Bitcoin, Ethereum, etc.)


📊 Try Robinhood and Get A Free Stock When Joining Here 📊

 

What Is The Robinhood App?

Robinhood is a commission-free stock trading app designed for both new and experienced traders and investors. The Robinhood app is available on both iOS and Android devices. 

With Robinhood there are absolutely zero fees to buy and sell stocks nor are there any monthly account maintenance fees. If you’re looking looking to start trading stocks this is a key advantage over most larger brokerages such as TD Ameritrade, Fidelity, and Etrade, which charge $5-$7 per trade. And unless your trading massive amounts of money those fees are going to eat away at your profits.

But while Robinhood does save you on commissions they do lack a bit in their research, data, and charts offered. As you can see the Robinhood app has a very clean interface but they essentially only offer basic line charts and candle charts. 

And while they do offer some basic news and analysis on each stock, their data offered is limited. Now this doesn't take away from the experience of the app but it does take a bit away from its usability if you're an active stock trader. 

For long term investors the lack of data is not such a big deal, but if you are interested in actively trading stocks then you may want to consider pairing Robinhood with another app with access to more research and trading tools. 

On the other hand, if you're looking for a commission-free trading app, like Robinhood, that offers all the same features but has more detailed research and data, I would recommend considering the Webull app

Investments

Robinhood currently offers over 5,000 single stocks and ETFs in the US that you can either trade or invest in. At this time they do not offer mutual funds or bonds.

In addition, Robinhood also gives you the ability to trade a few select cryptocurrencies on their platform. They also offer options trading as well.

 

Account Minimum

There is no minimum investment required to get started on the Robinhood app. This is a plus for Robinhood because many larger investment brokerages, such as Etrade, require at least $500 just to open an account.

However, do keep in mind while there is no minimum amount to get started investing you will need to deposit at least enough to buy a full share of your desired stock. This is because you cannot invest in fractional shares on Robinhood.

Essentially, this means if you want to buy a stock that cost $300 you will have to deposit $300 to buy the full share.

Now, if you are just getting started investing and want to invest in fractional shares (i.e., buying $5 worth of that $300 stock), I would recommend checking out the Stash Invest app as an alternative. 

 

Features

Advanced Order types

Robinhood supports advanced order types including market orders, limit orders, stop loss orders, and stop limit orders.

This is a great advantage for trading stocks as it allows you to automate your trades and have the app buy and sell stocks for you at your desired price points. 

Extended Hours Trading

Robinhood also offers free pre-market and post-market trading so you can continue to trade before the market opens and after it closes.

  • Pre-market trading hours:  from 9:00 a.m. to 9:30 a.m. EST (30 minutes before market opens)
  • After-hours trading hours: from 4:00 p.m. to 6:00 p.m. EST (2 hours after market closes)

Robinhood Crypto

In addition to trading stocks and ETFs, Robinhood also lets you buy and sell cryptocurrency 100% commission free. They currently let you invest in Bitcoin, Ethereum, Litecoin, Ethereum Classic, Dogecoin, and Bitcoin Cash. 

Now unlike stocks on Robinhood, with cryptocurrency on Robinhood you can invest in fractional shares of any of the above cryptocurrencies as well as trade them 24/7, as the cryptocurrency market never closes. 

Options Trading

Robinhood also now offers commission free options trading. With options you can choose to go long on stocks you believe in and short on the ones you don't.

Advanced options traders can execute more sophisticated strategies like iron condors, straddles, strangles, and more. And unlike options trading on traditional brokerages, when it comes to options trading on Robinhood there are no base fees, no exercise and assignment fees, and no per-contract commissions. 


 You can see my full Robinhood app review in the video below:


 

Are There Any Fees?

There are zero commissions on Robinhood to buy or sell stocks and there are no account maintenance fees. 

They do offer an upgraded account option called Robinhood Gold with extra tools for $5 per month.

Robinhood Gold

Robinhood Gold is their upgraded account option with the following features listed on their website:

  • Bigger Instant Deposits: Increase your instant deposit limit for faster access to funds. (without Robinhood Gold you get $1,000 in instant deposits). 
  • Access to Margin Investing: Borrow money from Robinhood so you can invest more. 
  • Professional Research: Make more informed decisions with in-depth research reports from Morningstar. These reports are available on 1700 stocks and are updated frequently on important company events.
  • Level II Market Data (Coming Soon): Monitor real time bids and asks directly from Nasdaq. Level II Market Data will be available to Gold users later this year.

 

Is Investing On Robinhood Safe?

As a member of SIPC (Securities Investor Protection Corporation), Robinhood is SIPC insured against brokerage failure. Securities in member's accounts are protected up to $500,000, including up to $250,000 in cash. For further details, please see www.sipc.org

SIPC insurance is investor protection for investment brokerages. Now unlike a bank's FDIC insurance, SIPC does not protect against the decline in value of your securities. Investments in the stock market are subject to fluctuations in market value. 

However, SIPC protects against the loss of cash and securities – such as stocks and bonds – held by a customer at a financially-troubled SIPC-member brokerage firm. SIPC works to restore to customers their securities and cash that are in their accounts when any potential brokerage firm liquidation begins.

 

Pros

Who would I recommend the Robinhood app for?

New stock traders

  • With a clean app interface and commission free trades the Robinhood app is a platform to consider for new stock traders.

Investors who want to save on commissions

  • There are no fees to buy or sell stocks in your portfolio. This is an advantage over traditional brokerages, such as Etrade, which charge investors $5-$7 per trade. 

Those who want to invest in both stocks and cryptocurrency

  • Several advanced order types allow you to automate both your stock trades and cryptocurrency trades.

 

Cons

Who would I not recommend the Robinhood app for?

Long term buy and hold investors

  • Robinhood is more designed for active stock trading. While it can be used as a platform for buy and hold investing, the bulk of their features are more geared for short term trading.
  • If you're instead looking for an investing app more geared towards long term investing I would recommend checking out the Acorns app or the M1 Finance app

Completely new investors

  • While more experienced stock traders will appreciate Robinhood's trading features, they can be a little overwhelming if you are completely new to investing and the stock market
  • Again, if you're new to investing in the stock market I would instead recommend checking out Acorns or M1 Finance

 

Sign Up Bonus

When you join Robinhood you will receive a free share of stock. If you'd like to try out the Robinhood app feel free to join here and enjoy your free stock

 

Final Thoughts

If you're looking to start trading stocks, Robinhood's commission free trading, extended hours, and clean design make it easy to trade with. However, if you're more interested in platforms for long term investing, then I would recommend checking out the M1 Finance app or the Acorns app

If you'd like to try out the Robinhood app you can join here.

Or feel free to see how Robinhood compares to today's other top investing apps here.

Need help with investing? We can help you find the right investing platform for your financial goals.

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