If you're looking to dip your toes into the investing pool with commission free trading, you've come to the right place. Founded in 2013, Robinhood is a no frills commission free trading platform that allows users to execute basic trades while they learn the market. Traditional stock brokers like Fidelity will charge you a commission on every trade you make. Fees are typically 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.
Robinhood has been consistently working to improve the platform since launch, expanding its trading capabilities. Launched in 2016, Robinhood gold allows those looking for some more complex features like margin trading, real time trades, real time funding, and aftermarket trades can pay a $10 monthly fee to do so.
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 consolidate all of your banking needs at one banking institution, Robinhood's platform will fall short of your needs.
Right now, new customers that sign-up 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. Terms Apply.
Beginners and casual investors. If you're investing small amounts of money into stocks on a semi-regular frequency there's no point in paying commission on your trades. Those commissions will have a huge impact on your overall profit margin.
Personally, we like to take our earnings from Ibotta or Ebates and invest those into a service like Robinhood. We're then (hopefully) making money on our cash back!
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.
If you're a seasoned investor you might also want to look elsewhere. The bare bones platform likely won't meet your needs long term.
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.