Looking for some free stock to fill your stocking this Christmas? Robinhood is looking to take from the rich and give to the less rich with their commission free trading platform. Founded in 2013, Robinhood is a no frills commission free trading platform that allows users to execute basic trades while they explore the market. Traditional stock brokers like Fidelity will charge you a commission on every trade you make. Fees typically fall in the $10 per trade range. While $10 doesn't seem like a lot, if you are only buying $25 in stock that $10 fee can be really prohibitive and keep beginners out of the market.
Right now, new customers that sign-up for Robinhood using our link will get a random share of free stock valued between $2.50 - $500. Stocks are chosen randomly and value will fluctuate over time, but it's a nice incentive to try out a new platform. They share the odds of getting a premium stock on their site, if you are interested
The mobile app is great for beginners and casual investors. If you're investing small amounts of money into stocks on a semi-regular frequency you're throwing money away every time you pay commission on your trades. Unless you are purchasing stocks in bulk, the fee eats away all of your potential profit. Personally, we like to take our earnings from Ibotta or Ebates and invest those into a service like Robinhood. It's money that we don't have earmarked for anything else, so we're not at a loss if our stocks drop in value. We get to learn a bit about the market and hopefully make a bit of coin on the cash back we've earned through smart shopping.
While Robinhood removes a hurdle for many beginner investors, it isn't for everyone. The online stock buying process is intuitive and clean, but it is also bare bones. The platform lacks some of the fundamental aspects of trading that a more seasoned investor may be looking for. If you're looking to short stock, buy pink slip stocks, or use more complex investing strategies, Robinhood's platform will fall short of your needs.
Wiht that being said, the Robinhood team has been consistently working to improve the platform since launch. In 2016 Robinhood Gold was added to the base offering for those looking for some more complex features like margin trading, real time trades, real time funding, and aftermarket trades. The added service starts at $10 a month. You can also expect a desktop interface in early 2018 if mobile isn't your thing.
Always keep your investing goals in mind before signing up for a new service expecting to get rich. This isn't going to be a great investing option for those without money to lose. While the market is hot right now, that isn't going to be the case forever. The market goes up and down, and you are not guaranteed to make money. Your investment may lose value. If you aren't in a position to take losses, you may want to consider a high yield savings account or a certificate of deposit. Either option will allow you to earn interest while safeguarding your savings. If you're looking to invest in mutual funds, check out our investing page for some additional options that will help you diversify your holdings and be a little less risky than investing in individual stocks as a result.
Robinhood is a great tool for the new investor. If you're looking to play around in the market and figure out your risk tolerance, this is a commission free way to accomplish your goal. If you are going to be less open to risk or need more robust trading features there are other products on the market that will better meet your needs.
- Trade Stocks commission free
- Set-up an account in less than 4 minutes
- Smart notifications for upcoming scheduled events like earnings, dividends, or stock splits
- Terms Apply
- Sign-up Now