Robinhood App Review: The Easy To Use Free Stock Trading App
Are you interested in trading stocks but are unsure where to begin? It's actually much simpler to get started today than it's ever been... once you break away from the clunky and outdated traditional brokerages.
Today we're breaking down the commission-free stock trading app that lets you easily buy and sell stocks and ETFs right from the palm of your hand.
With their user-friendly app and built-in trading tools, Robinhood helps make stock trading accessible to the everyday user. Whether you're just getting started or are a more experienced investor, they'll even help you kick-start your investment portfolio with a free stock when signing up.
In this Robinhood app review I’ll be breaking down all the features of Robinhood, covering it's pros and cons, and discuss who I think this app is most ideal for.
This article contains affiliate links. To learn more, visit our affiliate disclosure.
☑️ 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 for automating your stock trades (market, limit, stop loss, stop limit)
- Can also trade cryptocurrency (Bitcoin, Ethereum, etc.)
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What Is The Robinhood App?
Robinhood’s mission is to democratize our financial system. They believe that everyone should have access to the financial markets, so they built Robinhood from the ground up.
Available on both iOS and Android devices, Robinhood is a commission-free stock trading app with trading tools and features designed for both newcomers and experienced investors alike.
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 offers a key advantage over many traditional investment brokerages.
How Does the Robinhood App Work?
From the moment you open the app, you'll notice that Robinhood offers a very clean user-friendly interface.
Not only does Robinhood help you track the performance of your favorite stocks right from your dashboard, but with their trading automation tools they can even help you buy and sell stocks when you're away from your phone. (More on that in just a bit).
With easy-to-read charts, stats, earning reports, and analysis ratings on every stock, Robinhood can help you make more informed stock trades.
Underneath each stock you can also find the latest news on each company from The Wall Street Journal, Bloomberg, Morningstar, MarketWatch, Barron's, and more.
Robinhood has truly built an all-in-one stock trading platform by including all the tools and resources every stock trader will need.
But what's even more impressive is that they've continued to innovate their platform by continually bringing new features to the app.
Robinhood currently offers over 5,000 single stocks and ETFs in the US that you can either trade or invest in. If you're new to investing, an ETF stands for Exchange Traded Fund.
Essentially, an ETF is a basket of related stocks grouped together in one investment. And single stocks (also known as "individual stocks") are single companies such as Amazon, Google, Walmart, etc.
ETFs are often composed of individual stocks related by a specific sector of the market. For example:
- A technology ETF composed of technology related companies
- A retail ETF composed of retail related companies
- A dividend ETF composed of companies paying consistent dividends
Tip: ETFs can be an easy way to diversify your investment portfolio and may help reduce risk rather than investing in individual stocks.
In addition, Robinhood also gives you the ability to trade some of the top cryptocurrencies on their platform. They also offer options trading as well.
There is no minimum investment required to get started on the Robinhood app. This is a definite plus for Robinhood compared to many traditional investment brokerages, who may require hundreds of dollars 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 currently invest in fractional shares on Robinhood.
Essentially, this means if you want to buy a stock that cost $100 you will have to deposit $100 to buy a full share of that stock.
Now, if you are just getting started investing and want to invest in fractional shares (i.e., buying $5 worth of that $100 stock), you may want to compare Robinhood with some of today's top micro-investing apps.
Advanced Order types
Wouldn't it be nice if your investing app could buy and sell your desired stocks for you, on your behalf?
Well with Robinhood, it can.
This is a great advantage for trading stocks when you're on-the-go or simply away from your phone. Through their advanced order types Robinhood can help you automate your trades by buying and selling stocks for you at your desired price points.
Robinhood supports the following order types:
- Market orders
- Limit orders
- Trailing Stop Order
- Stop orders
- Stop limit orders
Extended Hours Trading
With Robinhood, you don't have to worry about limited trading hours, as they provide 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 also 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.
Most stock market investing apps will only give you access to trading stocks and ETFs. One of Robinhood's unique advantages is that they also allow you to trade the top cryptocurrencies.
Just like their stock trading, Robinhood lets you buy and sell cryptocurrency 100% commission-free. They currently let you invest in the following cryptocurrencies:
- Ethereum Classic
- Bitcoin Cash
- Bitcoin SV
Another added bonus with trading cryptocurrency on Robinhood, is that you can invest in fractional pieces of any of the above cryptocurrencies.
What are fractional pieces, you ask? Fractional pieces are anything less than one full coin of cryptocurrency. Robinhood gives you the ability to invest in a "fraction" of a coin without needing to buy a full coin.
With many of the top crypotocurrencies costing hundreds of dollars or more, this can make trading cryptocurrency accessible to new traders.
- Note: Do keep in mind though, that cryptocurrency trading can be a lot more volatile than stocks. Invest with caution.
In addition, since the cryptocurrency market never closes, you can trade cryptocurrencies on Robinhood 24/7.
You can see my full Robinhood app review in the video below:
Robinhood Cash Management
From stocks to ETFs to cryptocurrency, Robinhood offers a lot of versatility in its investment options. But what happens to the uninvested cash sitting in your Robinhood account?
Coming soon, Robinhood is launching a cash management account so you can invest, spend, and earn interest all through your Robinhood account.
Not only will Robinhood's Cash Management account include a Mastercard® debit card but it will also include the following features:
Earn 1.80% APY1
Your uninvested cash is moved to banks in their program that currently pay 1.80% (APY).*
*Note: Like all variable rates, this could go up or down over time.
Use your Robinhood debit card anywhere Mastercard® is accepted around the world.2
Don’t pay fees at any of the 75,000+ ATMs3 in Robinhood's network.
Your cash in the program banks is also eligible for up to $1.25 million of FDIC insurance, or up to $250K per bank, subject to FDIC rules.
Are There Any Fees?
There are zero commissions on Robinhood to buy or sell stocks and there are no account maintenance fees.
Robinhood does offer an upgraded account option called Robinhood Gold, with several extra tools for traders.
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: Monitor real time bids and asks directly from Nasdaq. Level II Market Data is available to Robinhood Gold users.
You can try Robinhood Gold for free for the first 30 days. After your free trial ends, you will be charged $5 every 30 days at the beginning of your billing cycle.
The free trial only covers the $5 monthly fee and does not cover your margin interest. This means that if you borrow over $1,000, you’ll still pay interest at the end of your billing cycle.
Is Investing On Robinhood Safe?
As a member of SIPC (Securities Investor Protection Corporation), your Robinhood account 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 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.
SIPC insurance is investor protection for investment brokerages failures. SIPC does not protect against the decline in value of your securities. Investments in the stock market are subject to fluctuations in market value.
SIPC insurance does not apply to the Robinhood Cash Management account. Your cash in the program banks is eligible for up to $1.25 million of FDIC insurance, or up to $250K per bank, subject to FDIC rules.
Who would I recommend the Robinhood app for?
New stock traders
- With a clean app interface, automated trading tools, and commission-free trades, Robinhood provides a user-friendly experience for new stock traders.
Active stock traders on-the-go
- With advanced order types, Robinhood makes it easy to place orders and have the app execute your trades for you even when you're away from your phone.
Those who want to invest in both stocks and cryptocurrency
- Unlike most stock market trading platforms, Robinhood also gives you access to trading the top cryptocurrencies, such as Bitcoin, Litecoin, Ethereum, and more .
Who would I not recommend the Robinhood app for?
Not as ideal for passive investing
- Robinhood is more designed for active stock trading. While Robinhood can be used as a platform for buy and hold investing, the bulk of their features are geared towards short term trading.
- Active stock trading may require more portfolio management and research than pre-built diversified portfolios.
- If you're instead looking for an investing app more geared towards passive investing, you may want to compare Robinhood with Acorns, Stash, or M1 Finance.
Not as ideal for practicing stock trading
- Robinhood’s trading tools make it a great stock trading app. However, they don’t offer the ability to practice trading stocks with a virtual trading account (paper trading).
- If you’re interested in actively trading stocks commission-free with the ability to practice with paper trading virtual money, I would recommend checking out the Webull app.
Sign Up Bonus
When you join Robinhood you will receive a free share of stock to help kick-start your investment portfolio. If you'd like to try out the Robinhood app feel free to join here and enjoy your free stock.
If you're looking to start trading stocks, Robinhood's commission free trading, extended hours, and user-friendly app make it an ideal option for both new investors and experience stock traders.
Not only can Robinhood's tools and features help simplify your stock trades, but with their built-in data and analysis Robinhood is worthy of being a staple in every stock trader's arsenal.
If you'd like to try out the Robinhood app you can join here.
Alternatively, if you're more interested in passive stock market investing apps, you may want to compare Robinhood with some of these other stock market platforms. Or, feel free to check out today's other top investing apps here.
Catch the latest investing app videos on the Everyday Investing YouTube channel:
1 Cash management is an added feature to your Robinhood Finanical LLC brokerage account. The Annual Percentage Yield (APY) paid by program banks is 1.80% as of October 30,2019. APY might change at any time and at the program bank's discretion. Neither Robinhood Financial LLC nor any of its affiliates are banks.
2 The Robinhood debit card is issued by Sutton Bank, member FDIC, pursuant to license by Mastercard® International Incorporated.
3 Out of network ATM providers may charge a fee, which Robinhood Financial will not reimburse. However, Roibinhood Financial will not benefit from these fees or mark these fees up. Please keep in mind that other fees may apply to your brokerage account. You can check out Robinhood's fee schedule to learn more.
Everydayinvesting.com is a paid Affiliate/partner of Robinhood. Investment advisory services offered by Robinhood Financial LLC, an SEC-registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk.
Everydayinvesting.com is a paid Affiliate/partner of Morning Brew, Inc.
Morning Brew, Inc. is not affiliated, associated, endorsed by, or in any way officially connected with Robinhood Financial LLC.
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