Robin Hood Trading App Review
Name: Robinhood Financial, LLC
Price: $0 to download the app and $0 fees on trades
Founders: Baiju Bhatt and Vladimir Tenev (some of the investors of the app in 2014 were actor Jared Leto and rappers Snoop Dogg and Nas)
Overall Rank: 80 out of 100
Robinhood Trading App Overview
Robinhood is a mobile app that allows anyone in the US to buy and sell stock from a selection of over 5,000 securities that include most U.S. equities and exchange trade funds (ETFs) listed on major U.S. exchanges. It has no fees for the transactions which was the main idea of the founders. If you have a US bank account, a US social security number and $10 dollars, you can start investing upon sign up.
The Good & The Bad
- No fees
- Very easy to join and use
- It’s on mobile only so you can open it and check it wherever
- You can join earnings calls of the companies live when they are announced
- No technical analysis information given
- No complicated bidding strategies such as short selling
- Limited to only US shares (no bonds or any other financial products offered)
- Not all US shares are included
Who is Robin Hood Investing For?
Robin Hood is mainly for passive traders or investors who usually do no more than 2-3 trades per week. Furthermore, i would say that Robin hood is really for beginners and simple investors leaning more towards value investing rather than technical analysis investing.
Since the Robin Hood trading app is so simple, has no technical and detailed charts or information and it only allows you to buy or sell manually, it is not really for advanced traders.
Robin Hood Trading App Tools & Training
The app is so simple and user friendly that when you sign up and play with it, you will immediately know what’s going on. There is no specific training but in terms of tools, you can find:
- Share price chart going back from one day to five years.
- Simple stats
- A small paragraph about the company
Here is an example of how Apple’s profile (AAPL) looks like on the Robinhood trading platform during after hours:
Robin Hood Trading App Support
There is a Help Center where you can find answers to a lot of questions you may have and there is also some Contact Support information where you can type and send them a message. From what i’ve heard their support is not very quick but this may change with time. Also, considering that you do not pay any fees for the trades it’s fair to say that there is price to pay that could translate into slower support. Again, this was in the past and since this is a company things may change.
Robin Hood Trading App Price
The app is free to use and to sign up for. There are no fees for the trades, no commissions. There is, however a choice of joining a Gold membership where you get some extra benefits. The GOLD membership has three levels: $6 per month, $9 per month or $10 per month which gives you extra buying power (sort of lending you money to trade). Furthermore, when you have the membership, when you trade shares, money become instantly available to be withdrawn whereas in the free version it takes 3 days for the money to be available.
My Final Opinion of the Robin Hood Trading App:
If you are a beginner and want to learn about stocks i recommend this app to start from. You can invest anything from $10 upwards which gives the opportunity to people who may not be able to invest a lot to get a glance of the stock exchange and who knows maybe develop some good knowledge and habits and make money in the long run.
VERDICT: Is Robin hood trading scam? Robinhood Financial LLC is absolutely legit and registered with the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Do i recommend it? Only for absolute beginners and people who have small amounts of capital and don’t want to waste money on fees.