Robinhood Review 2020

  • Easy To Use?
  • Cost
  • Profitability
  • Time Needed
4.9

Robinhood (https://robinhood.com/gb/en/) is a U.S.-based financial services company that provides people with smooth access to financial exchanges. Hailed as the pioneer of commission-free investing, Robinhood is suited for startups who want to invest and trade small amounts. 

Aside from free-trading, Robinhood is a discount stock broker that includes fractional shares. It serves a website and mobile application that lets people invest in stocks, ETFs, and other options. With its outstanding services, the platform grows more than 10 million users with billions of transactions.

Who is Robinhood?

Robinhood is regulated by the Securities and Exchange Commission (SEC) since it is considered a brokerage firm that handles financial securities. It is also backed by the Securities Investor Protection Corporation and a FINRA-approved broker-dealer. The interest earned on customers’ cash balances and lending is the company’s central source of revenue.

Where Is Robinhood Headquarters?

Since its establishment in 2015, Robinhood’s headquarters are located at Menlo Park, California. They have offices at Lake Mary, London, Florida, Denver, and Colorado, UK. Most countries have access to Robinhood’s services except for North Korea, Syria, Cuba, Iran, and the Crimea region of Ukraine—logins and admittance are restricted to these countries.

What to Expect from Robinhood?

Generally, Robinhood provides a cash management account where you can invest in your cash and pay your bills. With no transfer fees and account minimums, you’re able to put up with interest on your funds. Here’s a closer look at how this fee-free broker operates.

  • Trading costs are cheap, while their cryptocurrency deals can be traded with smaller quantities and are considered wider than other platforms 
  • The mobile application and website are easy and accessible to utilize. Users don’t have a hard time dealing with the network. Also, the app could provide basic charting functions
  • However, research and other resources for educational components are very limited.
  • User’s quotes do not stream and could be delayed at times
  • After the following conditions and selling stocks, anyone registered in Robinhood has immediate access to deposits and funds. Customers can schedule automatic transfers
  • Users acquire the bonus of access to opt into a margin account.
  • Users who may be needing an urgent answer through phone may have to look through websites to access the company’s number 
  • Robinhood doesn’t accredit other charges on any ACH transfers to or from the user’s account.
  • Unlike other brokers which ought to do so, Robinhood does not publish the trading statistics. Comparing the flow of statistics to others is inaccessible.

What are the Robinhood’s Best For

Robinhood has grown much beyond the preceding several years, extending their network and mobile version ever since it launched. Known for its easy and accessible financial management, here are the other following features that Robinhood was prominent for having.

Mobile App.

While most investors require face-face or web-based transactions, Robinhood has been noticeable for its convenient interface. Users prefer trading platforms with easier features, such as a mobile app. Navigating and analyzing statistics is more comprehensible. Once the user understands the icons of the app, they are quick to move from screen to screen and place orders. Moreover, with just a single swipe, traders are ready to purchase or market at any moment.

Quick Funding and No Account Minimum

Robinhood is best suited for new investors, considering its minimum account. The funding process is more reliable since it transfers your cash into your account directly. It also allows users not to experience the hassle of traditional verification and reporting smaller details regarding their accounts. Here are the three different account types that Robinhood offers.

  1. Standard Account.

This is the account that would be given once a user is registered. It would grant the individual immediate access and instant deposits of up to $1000. Generally, processing stocks and trade wouldn’t take long.

  1. Gold Account.

With extended trading hours and further buying power, the Gold account is upgraded to Standard. It allows registered users to deposit greater accounts instantly. According to the reviews of customers, users could hold to a minimum balance of $2000 that comes with more benefits. Based on the user’s margin, they would have to pay a monthly fee.

  1. Cash Account 

Without instant deposits and settlements, cash accounts allow registered users to place commission free-trades. They could also downgrade to Standard and Gold accounts.

Fractional Shares

Few brokerages allow investors to purchase shares of stock, including Robinhood. No matter how small the investment could be, the company allows investors to settle their funds to operate in thousands of assets. Not only does it let the fund to gain interest but creates various investment capitals.

Zero-commission for Stock Trading: 

Robinhood has a convenient fee structure compared to other online brokerages that have to follow suit. While others impose per-contract charges, Robinhood does not. Making the company pioneered for zero-commission in stock trading.

Robinhood Gold

Robinhood Gold is the company’s premium access, offering more benefits to the registered users. It allows users to purchase securities with their margin or borrowed money. This version of the platform usually charges 5$ per month or may vary with the customer’s demands. Gold members get access to margin trading, immediate admittance to larger deposits, and even Morningstar stock research reports.

What could be improved?

May it be famous for its features, Robinhood financial management has its pitfalls. There are useful features that need to be developed, considering user fails and technicals as well.

  • Robinhood only provides standard brokerage accounts. Registered users can’t invest in either an IRA or a custodial account, trust, and Coverdell as well.
  • Educational tools and stock research have insufficient access. Customers have to look elsewhere.
  • The company’s mobile app has limited functionality and crashes at times. The website can lag real-time data
  • Robinhood does not offer mutual funds and bond investments.
  • While setting orders is easy and straightforward for funds, there are no customization options 

Final Thoughts on Robinhood

Robinhood is perhaps great for new investors, aiming to get financially secured and gain interest. It is widely known for its simple and straightforward setup, making it convenient for registered users. However, just like any other brokers who provide services for people, Robinhood lacks features that could be developed. Despite the limited options, customer reviews show support and positive results.

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