Robinhood Review – An Investment App In 2022

If you are attracted towards investing at all, you’ve must have heard of Robinhood.

The investing app is loved among everyday traders and has exceeded 18 million active users since its launch.

Robinhood is a financial services company. It is the first commission-free trading platform of stocks, cryptocurrencies, and exchange-traded funds.

Summary

GuideRobinhood Review
Established 2013
Rating out of 5 3.8
Trading software Android & IOS
Minimum deposit $0
Website Click here
Robinhood
Robinhood

Robinhood has become one of the most widespread brokerages in the U.S., mainly because of its easy-to-use trading app that makes trading appear very simple.


What Is Robinhood?

What is Robinhood?
What is Robinhood?

Robinhood is a brokerage firm, launched in April 2013, headquartered in Menlo Park, California, U.S. Robinhood is registered with the exchange commission and U.S. Securities and is a FINRA-regulated broker. It has also introduced a mobile app in march 2015.

Robinhood stood out as a troublemaker in the brokerage industry in its early periods. Its biggest canniness was not charging commissions for stocks, cryptocurrency, and options trading.

That advantage has been defused as most brokerage industry has united in eliminating commissions. 

Robinhood has established a solid brand and niche market with young, tech-savvy consumers thanks to a simple design and user-friendly interface despite the amplified competition on cost.

The broker lately added a recurring investment feature and cash management services to entice new investors and strengthen the financial relationship with existing clientele.

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How To Use Robinhood?

How to Use Robinhood?
How to Use Robinhood?

Things you need to start investing through Robinhood are:

  • A mobile device
  • Social Security number
  • Bank information

According to its website, it will take only four minutes to set up the account. 

Step 1: Set up an account on the website sign-up page.

Step 2: Enter your personal information.

Step 3: Verify your identity.

Step 4: Fund your account.

Step 5: Submit the application.

Step 6: Download the app.

Step 7: Log in to the app.

That’s it, and now you can start investing.


Why Choose Robinhood?

Why choose Robinhood?
Why choose Robinhood?
  • Easy to use

Robinhood’s mobile app is tremendously easy to use. Even though the broker provides a web-based platform, it is a mobile-first company. The easy-to-navigate app is the primary area of differentiation between Robinhood and its rivals. The mobile app is not significantly advanced; its features are essential. But for customers who know what they want, the platform is enough to move from screen to screen and place trades rapidly.

  • Costs

Robinhood is an honest discount broker — although its features are not as advanced as some other platforms, it has some of the lowest costs in the business.

  • Free cryptocurrency trading

Robinhood is one of the few brokerages that lets you trade cryptocurrencies for free in today’s market, and it’s a prominent feature.

  • IPO access

In 2021, Robinhood revealed a new feature that lets investors participate in a company’s initial public offering or IPO. 


Fees Of Robinhood:

Fees of Robinhood
Fees of Robinhood

Like most opponents, Robinhood does not ask for any trading fees. There are some other fees separate from trading that are registered below.

  • All stocks and also ETFs are commission-free.
  • They do not charge fees for options trades.
  • Account opening and account maintenance are free.
  • There is a feature Robinhood Gold subscription at $5 per month used for trading on margin, including $1,000 of margin.
  • There are no local or international wire fees.

Features Of Robinhood

Features of Robinhood
Features of Robinhood

Finance Explained – The mobile app will help you develop a better understanding of financial markets so you can trade in ETFs, stocks, & options.

Trading Tools – You can access real-time market data, read relevant news articles, see analyst ratings & also get notified about important events.

Security – It protects your holdings & offers active security tools to help keep your account secure.

Support — A dedicated team of professionals is available 24/7 through the app.

Furthermore, it has got a wide range of assets to help make your money work harder for you.

Stocks, Crypto, Options, ETFs – With Robinhood Financial, you have a variety of financial assets to choose from, including equity financial instruments and also eight types of cryptocurrencies.

Cash Management – You can get the facility of paying bills, sending checks, receiving paychecks, and also more through the this platform.


Types Of Trading Available At Robinhood

Types of trading available at Robinhood
Types of trading available at Robinhood

It supports the following financial assets: 

  • Cryptocurrencies: Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), Bitcoin SV (BSV), Ethereum (ETH), Dogecoin (DOGE).
  • Stocks, long-only.
  • American depository receipts(ADRs)
  • Exchange-Traded Funds (ETFs)
  • Options
  • Fractional shares

What differentiates Robinhood from others?

Following are the features that differentiate Robinhood from others: 

  • A 100% commission-free trading
  • You can trade with as little as $1
  • It will automatically reinvest your earnings from trading  

Our experience with Robinhood 

I would give about 3 stars to this trading platform. It helped me learn a little bit about trading, but it doesn’t offer mutual funds, so I wasn’t able to trade any commodities.

Plus, it only supports taxable brokerage accounts. These conditions might not suit, but it worked for a little bit. But if you are e beginner, you can start trading with Robinhood.


Robinhood Comparison

Robinhood Comparison
Robinhood Comparison

Let’s compare Robinhood with other similar services

Robinhood vs. Fidelity

Both Robinhood and fidelity are commission-free trading platforms, but Robinhood is a more streamlined trading app.

Whereas fidelity has several platforms and offers are a large selection. Most of the products that feature here are from the partners that compensate them as well.

Robinhood vs. Webull

They are quite similar, but there is one major difference between Robinhood and webull that webull offers a more sophisticated trading platform.

It would work for intermediate and advanced traders, not for beginners. At the same time, Robinhood works for new investors as well.

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Robinhood vs. Etrade

You get more services at Etrade like free streaming market data, free real-time quotes, analyst research stock screeners, and much more. Well, these services are not available on Robinhood.

Whereas Robinhood is a commission-free trading platform, you will get charged a 0.65% fee per trading on Etrade, but it doesn’t collect any base commission. 

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Customer Service

Customer Service of Robinhood
Customer Service of Robinhood
  • They give customer service through the app or the website.
  • It has a chatbot facility. 
  • Telephone number is not mentioned anywhere, so you cannot call Robinhood for assistance. Nevertheless, you can provide your phone number for a callback. You can also reach the support team on social media.

Security

Security
Security
  • Mobile app consumers can log in with a fingerprint, face recognition, or also a custom pin.
  • It reassures users to enable two-factor verification.
  • If two-factor verification is not allowed, new logins from unidentified devices must be confirmed with a six-digit verification code sent via email or text message.

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Customer Reviews

Customer Reviews
Customer Reviews

We are sharing one customer’s review below: 

I undeniably love this app and would’ve given it five stars. However, customer service is tough to approach via the app, and it includes waiting on hold an eternity (seriously, 10 minutes or more) before you get to talk to an agent. Still, when you do get to talk to a support staff agent, they’re always a pleasure talking to; they’re concise as well as do not drag their feet through the bad news (if you, unfortunately, dealt a bad hand in the crypto market).”

Another customer is like:

Pretty easy to use and inexpensive. I haven’t lost any money on it yet. 

Update: I have lost money, but it’s not Robinhood’s fault; just my bad picks.

Fill time is relatively fast, and sometimes they fill for better prices than what I’m asking for. It would have been much easier if we could select to close an order out depending on profit or loss percentage rather than having to enter a price by hand for a limited order every time.”


Conclusion

If you’re new to trading and also have little money to start with, Robinhood could be the platform to get you familiar with investing. 

The mobile-first financial service offers a simple app and also website, providing a seamless interface to start investing in stocks and ETFs.

The website and mobile app contain all the essentials a new investor would need.

If you’re an active trader, there are many superior options in the market as this one does not support advanced screeners, charts, and so on.

More sophisticated traders may find the platform’s features and resources deficient.


FAQs

Do I own the shares I bought through Robinhood?

You have the ownership of the shares you bought through Robinhood the moment your order gets executed.

How many days does it take for the transfer to go through?

It normally takes up to five working days to transfer investment from the bank account to the Robinhood brokerage account. Remember that national holidays and weekends are not considered trading days.

How can I withdraw my application?

If you have submitted an application and want to withdraw it, don’t hesitate to contact customer service. No action is mandatory if your application is in progress, but you didn’t submit it.

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