I hate paying fees! For anything! I remember when I was 19 I started trading stocks. I was using Scottrade and it cost $10 to buy and sell. I later switched to Capital One and they charged $7 and I used to think that was a good deal.
Now, there’s Robinhood! It’s hands down my favorite app. I love opening it when I wake up to see what stocks are up/down, and I love clicking Submit when I trade. Why? Because Robinhood does not charge any fees to trade stocks. Seriously, I’ve been using it for the past 3 months and I haven’t been charged a dime.
Why no fees?
According to the site, the founders went to Wall Street and found that it costs Brokerage Firms practically nothing to conduct trades on their platform, yet they charged traders up to $10 per trade. Makes sense as most trades are conducted by software. So the guys ventured off to start Robinhood, and pass the savings on to us.
How does Robinhood make money?
They collect interest from margin accounts, as well as interest from customers’ sitting cash balances.
The app is well designed, sleek and smooth.
Your investments plus sitting cash are at the top, and graphically show how well your portfolio has performed.
Below the graph, you get links to articles that might interest you, as well as updates on some stocks you might be watching.
As you scroll down, the stocks you own are at the top, and your Watch List is right below.
You can search for stock or ETFs by clicking the Search icon in the top right.
If you’re looking for a specific stock, you see up to 5 years of stock price performance. You can also view related articles, Stats, and company profile.
When you’re ready to make a trade, hit Buy and enter the # of shares, and Swipe up to Submit. The standard Order Types available are Market, Limit, Stop Loss, and Stop Limit.
If you’re trading during open hours, it’s instant. If not, then your order is queued until the market opens again.
If you’re buying dividend stocks, you can see Pending dividend payments to you under History. It’s so cool! The money goes directly into your account.
After using the app for about a month, I got a link to join Robinhood Instant. Under Robinhood Instant, I get access to the funds from selling my stock instantly. Also, if I deposit money into my account, I get to use up to $1,000 instantly for trading.
You can only trade most US based stocks and ETFs. They recently added Canadian and Israeli stocks above $5. I hope in the near future you can trade more foreign stocks.
I also hope they add an analyst opinion feature. Currently, I read what the analyst consensus is from the NASDAQ site and then trade on Robinhood.
I love this app and I don’t pay any fees! It’s been about 3 months, and they already made the app a lot better, and they’ll just keep making it better.
If you’re one of the many millennials that only have a savings account and 401k or Roth IRA, seriously, learn more about trading and the market and start getting into investments.
You can join Robinhood here and get a free stock!