Robinhood Review and Tutorial 2020

Minimum initial deposit

There is no initial deposit minimum for Robinhood’s standard account. However, if you have a gold margin account, you will need $2000 just like the regulatory minimum. Of course, you need enough capital to buy, for example, NASDAQ stock or one share in an ETF.

This minimum deposit requirement is a real bonus for this broker, as many of its competitors require $1,000 or more to open an account.

Spreads, Commissions and Leverage

Not only are there no fees for in-application trading, Robinhood has implemented a transparent fee structure for Gold Margin accounts. Many exchanges charge a confusing annual rate, but Robinhood uses a monthly fee based on the amount of capital you borrow. For example, if your account balance is $5,000 and you have a $2,000 margin, your monthly fee is $10.

As a result of this pricing framework, Robinhood is one of the cheapest online brokers.

Other trading fees

User reviews happily point out that there are no hidden fees. No inactivity, ACH or withdrawal fees. The ACAT outgoing transfer fee is $75.

There are also notable bonuses and special promotions. For example, Robinhood sometimes offers referral deals where you can earn free stock when you invite a friend to their network.

Please visit our official website to see our current special offers.

Robinhood trading platform

Since the 2018 web platform release date was announced, an impressive 640,000 customers have quickly joined the waitlist.

When you log in, the online platform is stronger than the mobile app, but still falls short compared to its competitors. From the menu, users can access:

• Morningstar analyst ratings and market commentary
• Price data and current stock prices of certain securities, such as Japanese stocks
• The ticker profile provides a list of recently purchased stock and index funds to help users identify potentially profitable assets.

However, while viewing stock prices and accessing functions from menus is straightforward, the charting package is limited. Also, the online platform does not have backtesting capabilities or sophisticated analysis tools.

However, Robinhood has announced that it will provide a guide on how to use the new web-based platform. This should mean that any desktop client can quickly log in with their web login information and start speculating on popular financial markets.

mobile app

As of 2018, trading platform reviews are divided when it comes to Robinhood’s mobile app offerings being the only way users can trade. First, it’s worth noting that it offers both iPhone and Android users an app that can be downloaded from the app store in minutes.

 

Software reviews are quick to highlight that the platform is clearly geared towards new traders. As a result, the user interface is simple but effective.

No screeners, backtesting tools or advanced features are provided. Also, not everything is in one place. So you have to go somewhere else to do your technical research and then go back to the app to execute your trades.

With that said, it’s not too flimsy. For example, you can still do:

• Execute trade
• Check your watchlist
• Keep up with the news
• Streaming share prices fall
• Deposit or withdraw
• Change security settings
• View charts with basic metrics
• Perform basic market research

Information will also appear to help you get the most out of the app. Customer support is just a tap away, and details of new features are quickly pointed out after updates.

How to use the Robinhood app

Reviews of the Robinhood app admit that placing trades is very easy. You can access the trading screen from your ticker profile. Or, swipe left on the ticker when you’re on the watchlist and a ‘Buy’ button will appear. You can also delete tickers by swiping left.

There are a few things iOS and iPhone app reviews can’t do. For example, there are 0 optional columns in the watchlist less than last price. Also, when displaying stock quotes, the chart cannot be modified except for the 6 default data ranges. It also cannot perform technical analysis. Finally, landscape view doesn’t have landscape mode.

 

 

App verdict

Robinhood offers free stock trading to Android and iOS users. The built-in consumer protections are fantastic for new traders as they limit risky investments. However, the stock brokerage review points to numerous competitors offering more comprehensive mobile apps for users accustomed to the risks associated with volatile instruments.

Payment methods

When you sign up for a Robinhood account, you must deposit funds before you can start trading. Fortunately, you can connect your bank account directly to Robinhood to make deposits and withdrawals. Also, bank account verification is quick and easy.

Note Robinhood recommends linking a checking account instead of a savings account. This may result in cancellation of the transfer.

Based on customer reviews, the broker is also considering alternative funding methods including PayPal and virtual wallets.

Robinhood accounts

Robinhood offers three account types.

1. Standard Account  – You will automatically receive this account upon registration. Grants access to instant deposit. Also, when you trade stocks and make deposits of up to $1,000, you don’t have to wait for your money to be processed.
2. Gold Account – This upgraded account provides additional purchasing power, instant deposits and extended trading hours. Since this is a margin account, you must have a minimum balance of $2,000. Gold reviews are positive, clients benefit from margin accounts and more trading hours. Gold account prices vary depending on the tier selected. You pay a fixed monthly fee based on your margin. Margin trading can be risky. You may actually lose more than your initial investment.
3. Cash Account – A Cash Account allows you to trade instantly, with no deposits and payments, and no fees. You can also downgrade from your standard Robinhood account and Gold account to a cash account.

As broker reviews highlight, customers appreciate being able to choose an account type to find one that suits their trading needs. Account verification is also fast, allowing traders to fund their accounts and speculate on the market immediately.

Demo account

Forex Accounts, S & Whether you are trading P 500 or penny stocks, practicing on a demo account first can help you devise an effective strategy before risking any real capital. However, despite internationalization, Robinhood does not offer free public demo accounts.

You could argue that the need is less since you have access to free trading apps anyway, but virtual trading with simulated money is a fantastic way to test drive trading software and familiarize yourself with the markets. Until practice accounts are introduced, we will continue to highlight this as a significant drawback of Robinhood’s system during our review process.

Additional features

Robinhood Investment Review is quick to highlight the lack of research resources and tools. Instead, the network was built more for people executing simple strategies.

Because the exchange only offers stocks, ETFs, and crypto trading, users never get any information about alternative securities such as options and futures. Although there are plans to facilitate this type of transaction in the future.

 

As said, you can find basic basics, rating stats and news feed in the app. We do not recommend using similar features to Yahoo Finance for comprehensive news reporting. Additionally, while the website provides support articles and tips, it lacks training videos and user guides to help customers get the most out of the platform.

Limited resources are a real downside to what brokers offer. For example, with the surge in cryptocurrency trading in the UK and elsewhere, companies can really help users by providing information about blockchain technology and digital currency tokens.

Regulation and license

Hacking has increased in recent years and promises of wealth from unscrupulous brokers. As a result, traders are looking for reliable and legit exchanges. Fortunately, account reviews show that Robinhood is a member of both FINRA and SIPC. In addition, SIPC promises insurance payments of up to $500,000 per customer, with a sub-limit for out-of-pocket claims of $250,000.

Additional insurance is also provided through Lloyds and many other London underwriters. This allows clients to be guaranteed overrange in cases where the SIPC standard limits are not sufficient.

Benefits

Here are some reasons why you should choose Robinhood.

• Costs – Exchanges do not charge transaction fees for buying and selling stocks and ETFs. With no fees, this structure is perfect for low-capitalized traders. Robinhood vs Coinbase, it wasn’t until Vanguard, Fidelity, and others realized just how low Robinhood’s transaction fees are.
• No Account Minimum Required – Trading blogs and forums are often filled with complaints about the high barrier to entry due to the initial deposit requirement. However, opening a Robinhood account is free and there is no account minimum for cash accounts.
• Easy to use – The intuitive app is clean, fast and easy to pick up. Perfect for beginners who don’t want to drown in complex features and options.
• Free Bank Transfer  – ACH transfers are always free. This will again appeal to new traders with limited starting capital.
• Mobile Users – Robinhood offers great mobile trading apps for both iOS and Android users. Users can easily conduct market research, trading and account management within the application.

Cons

Despite the positive numbers, Robinhood’s offer has some downsides:

• Limited Research and Education – Investment reviews are quick to point out what Robinhood lacks in terms of in-depth analysis and research tools. This can deter novice traders who are looking for additional resources to help them develop as a trader.
• Limited Products – While brokerages have made strides to offer cryptocurrency trading, user reviews suggest that there are alternatives that offer a much broader range of tradable products.
• Basic Charts – Charts and patterns are essential elements of market analysis. Unfortunately, with Robinhood vs Etoro, Etrade and TD Ameritrade it becomes clear that the previous charts provide a very basic charting package. In fact, users only receive tick information and historical price data with no customizability.
• Real-Time Data Issues – While the actual app displays quote data in real-time, the terms and conditions indicate that data may be delayed up to 20 minutes.
• Basic Order Types – Robinhood does not support advanced order types or options trading, but limit orders are up to 5%.
• Accessibility – The Robinhood broker is still in its infancy, so Robinhood is not an option for EU and UK investing and trading. Fortunately, as its net worth continues to grow, the company looks set to welcome traders from new countries.
• Negative Purchasing Power – Robinhood Gold users risk having a negative balance. This will not result in a margin call, but will require you to deposit additional funds. This will remind users that it is all too easy to lose more than your initial capital.

Trading hours

Robinhood trading hours vary depending on the trading asset that usually follows the market. However, those with Robinhood Gold have access to after-hours deals. As a result, users can trade 30 minutes before the market opens and 2 hours after the market closes. This is because many companies release earnings reports after the market closes. However, the downside of buying and selling in after-hours sessions can be higher bid/ask spreads due to reduced liquidity.

Contact & Customer Support

Robinhood Financial company offers a variety of contact methods including:

• Phone
• Email
• Twitter
• Facebook
• Google+
• Linkedin

However, as user reviews are quick to point out, these resources aren’t available 24/7. As a result, issues outside of business hours will have to wait until the next business day.

Despite the limited options, customer reviews suggest that the support staff are relatively knowledgeable and can help if the platform isn’t working or the website is down. It can also help with various account queries.

Robinhood also tries to push users to its online help center and FAQ pages, where most users’ questions and queries are answered.

Customer service representatives cannot provide tax advice. Instead, go to the official website and select Tax Center for more information.

Safety Security

In addition to insurance, Robinhood has multiple layers of security to keep your personal data and information safe, including TPS encryption. Your username and password login details can be combined with two-factor authentication in the form of an SMS security code.

Alternatively, if you have a fingerprint ID on your iOS or Android device, you can log in with Touch ID. This allows you to quickly and easily access and exit the investment app.

Robinhood Verdict

If low cost is your priority, you can’t beat Robinhood’s free trading service. However, the broker is probably best for beginners looking for a simple and user-friendly design, although it offers enough volume for users to trade comfortably. As we highlighted in our product and platform review, experienced traders may want sophisticated tools and additional resources elsewhere.

Accepted countries

Robinhood only accepts traders from the US.