Robinhood Review 2024: Pros, Cons and How It Compares

It has an easy-to-use mobile app and fee-free service, and is frequently ranked as one of the best online brokers. Originally, the company’s biggest differentiator was fee-free trading; however, many competitors have since lowered their fees in response. We’ll explore Robinhood in more detail so you can determine if the platform makes sense for you. Robinhood’s research offerings still pale in comparison to other brokers, although the company has made some efforts to increase the tools and research available for customers. It offers some basic research features such as analyst ratings and lists of top movers. Robinhood also resurfaces information from other Robinhood customers to create its own universe of data.

You can buy stocks in shares or even fractional shares (as small as (1/1,000,000 of a share). This allows you to invest in pricier companies without such a large investment. You can also purchase stock by the dollar amount instead of by the number of shares. Robinhood has become a dominant force in the investing industry – offering commission free trades to its users, the ability to trade stocks, ETFs, options cryptocurrency, and more. Robinhood offers commission-free trades of stocks, options, ETFs, and cryptocurrencies. When you purchase foreign stocks on U.S. stock markets, also known as American Depositary Receipts (ADRs), there may be a fee of $0.01 to $0.03 per share.

While it might not be technically considered a “catch,” one of the primary ways that Robinhood makes money is through “payment for order flow” which many contend is a conflict of interest. When I went to make my first trade, I thought I’d keep it simple and just invest in SPY. Rachel Warren has no position in any of the stocks mentioned. Toby Bordelon has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

It’s also important to understand that even though Robinhood doesn’t charge a direct fee for crypto trades, you’re still being charged indirectly through the spread. Now that you have your account funded, you can start using the Robinhood App to look up and trade stocks. Out of every app I have ever used, this has been the most intuitive part of the process. I find linking bank accounts can be a challenge, even on a desktop computer, but Robinhood made this easy.

  1. However, as with any financial product, potential customers should make sure to read the fine print and understand the conditions that come with the Robinhood IRA’s unusual perks.
  2. This allows you to invest in pricier companies without such a large investment.
  3. Robinhood only offers brokerage account options as either margin or cash accounts.

Note that a broker may score very highly for the platforms it offers, but low for the experience of actually using that platform. These are scored separately in our analysis, and they are weighted evenly when factored into the broker’s overall score. This means a broker can offer an advanced trading platform, but if it is clunky to use or the process of opening an account is unnecessarily arduous, that will be reflected in their score. Robinhood, the investing app, begins trading today, after its highly anticipated initial public offering priced at $38 a share last night.

Cash Card holders can also use 90,000 ATMs without paying a fee. The card builds on Robinhood’s mission of democratizing finance and investing in a new, enjoyable format. Robinhood’s trading experience is fast and easy to use, appealing to new investors in particular as it allows them to get up and running quickly. The sleek mobile app has a straightforward design that lets traders seamlessly enter, exit, and monitor positions. Robinhood’s focus on a simple functionality makes the platform more geared toward investors using uncomplicated strategies, regardless of experience level. Robinhood’s taxable brokerage accounts allow margin trading, although its IRAs do not.

How to buy Robinhood stock

Robinhood’s commitment to low-cost trading is especially apparent in its options trading offering — Robinhood is among the handful of brokers that don’t charge a per-contract fee. We believe everyone should be able to make financial decisions with confidence. Looking ahead, Robinhood plans to continue its growth trajectory by investing in new products, features, and international expansion. However, critics of payment for order flow say that it creates a conflict of interest. They say it incentivizes brokers to execute customer orders through the trading firms that pay them the most — not necessarily the firms that execute trades fastest or at the best prices for the customer. So if you deposit $100 during market hours and you have instant deposit turned on, you can buy $101 worth of stocks that same day.

Robinhood annual users 2015 to 2022 (mm)

At the time of writing, that discount drops your interest rate down to 8%, a considerable savings. He regularly writes about investing, student loan debt, and general personal finance topics geared toward anyone wanting to earn more, get out of debt, and start building wealth for the future. You can learn more about him on the About Page or on his personal site Under mounting pressure, Robinhood has finally unveiled 24/7 phone and chat support – but you still need to access it via the app. According to Pew Research, 40% of America’s total workforce is made up of gig workers, who don’t have access to employer matched funds. I’m always leery when I see a company offering something for nothing.

Market Data

As a result, traders using conditional orders can spend more time analyzing the market and planning their next move without having to watch current trades as closely. This is another sign that Robinhood isn’t meant for active traders. More basic order types, like trailing stop orders and stop limit orders, are about the extent of what you’ll get through the app. Advanced traders will notice that conditional orders aren’t supported. That said, quotes from the Robinhood app do at least stream in real time.

For example, Robinhood’s share price at IPO on July 29, 2021, was $38. Past performance doesn’t guarantee future results, but consider whether you’re prepared to weather those kinds of highs and lows if you already have some volatile assets in your portfolio. Ahead of its Nasdaq debut on Thursday, Robinhood priced shares at the low end of the $38 and $42 range.

It comes with all the features of the web version and receives high ratings from users. While Robinhood doesn’t provide a direct phone number to contact, support is available through email at You can also use the app or website to chat or request a phone call. Robinhood provides a very detailed FAQ page that can generally answer most questions.

Every major investment firm offer $0 commissions, and many offer a lot more features and account types. Robinhood users get access to basic watch lists and historical renault trade stock quotes paired with charts, analyst ratings, and news. The improved chart overlays give investors a more comprehensive look into stocks and their positions.

It allows access to stocks and ETFs with zero commissions or account minimums (other fees may apply). Robinhood only offers brokerage account options as either margin or cash accounts. Robinhood’s mobile-first approach to its trading experience makes it an easy choice for investors who prefer to trade from their phone. The web-based platform’s look and feel are similar to the app’s. Traders will find the same types of orders, assets, and functionality in either version. If a streamlined trading platform and mobile experience, an IRA with a contribution match or the ability to trade cryptocurrency are important to you, Robinhood is a solid choice.

The user-friendliness of the app was dampened, however, by the platform’s significant outages in February and March of 2020, which still linger in many traders’ minds. Notably, Robinhood rolled out improvements to its charting functionality in August 2022, much to the delight of traders who have long requested changes. New chart features such as moving averages let traders better visualize and analyze stock trends to make more informed investment decisions. We publish unbiased product reviews; our opinions are our own and are not influenced by payment we receive from our advertising partners. Learn more about how we review products and read our advertiser disclosure for how we make money. Here’s how to buy Robinhood stock, and what to think about when you do.

A new First Trade Recommendations feature was introduced in January 2022. The tool is designed to help new investors begin their financial journey. Content helping traders understand more advanced options trading strategies has also launched.