Those that decide to use Robinhood for their trading and investing needs can expect a number of quality services and features upon getting started. Prospective clients who use Robinhood will be able to take advantage of the following items:

Pricing and Fees

Robinhood charges $0 commission fees for its securities. In an industry known for charging up to $10 for securities and requiring $500 to $2,000 account minimums, Robinhood's pricing structure is fairly shocking. The firm's creators believe that there are millions of investors out there who use brokerage firms, place more than 10 trades per month, and yet end up paying thousands in fees each year. Unlike these firms, Robinhood doesn't charge steep fees for placing trades, doesn't have a mandatory account minimum to start a trading account, and doesn't have the same operational costs as other big name brokerage firms. So, they can afford to keep costs low and increase their clients' savings. Existing brokerage firms claim their services, like research and educational tools, are worth the fees they charge their clients. Robinhood disagrees. It believes that millennial investors-its target audience-don't care for paying money for services they may not use or may find inadequate. Instead, young investors tend to look elsewhere for free resources that'll help them make informed decisions.

Mobile Capabilities

The firm's trading platform is a mobile app available on android and iOS smartphones and tablets. On the platform, users have access to any of the 5,000+ stocks and ETFs listed on the US stock exchange, meaning the firm doesn't put a limit on the number of stocks users can access at the $0 commission rate. The app's sign up process is fairly straightforward and takes a little time to complete. Users have hailed the app for being easy to use and easy to link their bank accounts to. The app doesn't require a routing number nor does it take days to verify users' bank information. Instead, it uses micro-deposits to validate users' accounts.

Scheduling Feature

In addition to its commission-free stocks and ETFs, Robinhood offers scheduled deposits. This is a new feature where users can automatically schedule transfers on a weekly, biweekly, monthly, or quarterly basis. Another one of its new features is its advanced order support tool. Investors can use this feature to enter specific orders as good for the day or good until canceled (GTC). All of these aforementioned perks make Robinhood ideal for investors, especially millennial investors.

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The Bad

Limited trading tools
Looking ahead

The Robinhood service, while convenient and accessible, also comes with a number of limitations. Prospective users should consider the following drawbacks before creating an account and getting started on the platform:

Limited Trading Tools

The firm only offers a mobile app trading platform. While great for millennial investors who are always on their smartphones or tablets, this means the brokerage firm doesn't offer advanced trading tools. Usually, only desktop platforms have these advanced features like charting mechanisms and volatility indicators. Without these tools, the firm lacks critical features to help better inform its investors. Speaking of informing users, the firm also doesn't offer additional resources like education materials or research tools. While its creators believe that millennial investors tend to not use these features, we're pretty sure that investors would enjoy the added benefit of having their educational and research resources under one roof since it will save them time and energy from looking elsewhere.

Looking Ahead

Robinhood doesn't charge its investors any hidden fees, so for now, its users can rest easy knowing they're truly executing commission free trades. However, in the future, Robinhood may need to change its pricing structure to make money and keep its doors open. Eventually, the firm will charge for premium services if their traders decide to use them. The firm will also begin offering margin trading, which will allow its users to borrow money from the brokerage firm to cover a certain percentage of the securities' costs. The firm will then make money off of the interest rates they'll charge on the loans. Potential clients looking to join Robinhood should be aware of these impending fees. Furthermore, the company only offers stock and ETFs trades. Investors currently cannot trade options, bonds, mutual funds, and other securities. For investors who are interested in investing in a variety of securities to diversify their portfolios and mitigate financial risks, this detail is fairly disappointing. Additionally, the firm doesn't offer ACAT transfers, which means traders cannot transfer their existing brokerage assets into Robinhood. Another major downside to the firm is the fact that it's not the first brokerage firm to try out commission free trades. Zecco was a brokerage firm that implemented this model and had to frequently change its pricing structure because of how difficult it was for the company to stay afloat. Eventually, Zecco gave up, determined the model wasn't successful and instead, merged with TradeKing. This story could dissuade users from joining Robinhood since the firm's business model could be unfeasible in the long run.

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The Bottom Line

Robinhood is a great brokerage firm with the commendable goal of democratizing access to financial markets. It's especially ideal for novice and millennial investors looking to dip their feet into the industry without paying high commission rates. The brokerage firm offers thousands of individual stocks and ETFs to invest in, all at the touch of a button. Its mobile app is easy to use and boasts a quick and simple application process. However, the brokerage firm doesn't offer a variety of investment choices so individuals looking to trade the likes of options and bonds will have to look elsewhere. Furthermore, traders currently with another brokerage firm won't be able to transfer their existing account to Robinhood. This detail severely undermines the firm's ability to steal clients away from the big name firms. At the end of the day, our main concern is whether the firm's commission free rates are feasible in the long run, especially since similar firms have had to close their doors. Only time will tell whether Robinhood's business model is, in fact, sustainable.

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User Reviews

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4.3

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62 Reviews

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Jesse Breffle Denver, CO

Robinhood is a great way to start trading. It has a simple user interface and even has a handful of articles to help you start learning the ins and outs of trading. Granted one should always remember not to invest what they can't afford to lose. But to get started and have some fun playing around or if you are a serious trader Robinhood can satisfy both ends of the spectrum.

5 years ago

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Santow Shamon Gurnee, IL

Robin Hood makes trading stocks very easy. You don't need to be an expert to get started. The start up process is pretty easy and you are investing in stocks in just a few minutes. The app itself is pretty easy to navigate through. There's even information on stocks including trading history and it's highs and lows and average return rates. Create your custom portfolio of your invested stocks or a list of stocks to watch. Their always-ready customer service bots may not seem ideal but they have always answered every question I have without ever needing to speak to an actual person. Easy to transfer money from your bank account for immediate investing or withdraw your investments and deposit to your bank. The only con I have is with the app freezing up sometimes. Recommended.

5 years ago

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Kevin Jackson Salt Lake City, UT

I started with Robinhood a few years ago to learn about he stock market. As a new comer who was still finding my strategy...Robinhood was crucial. With no fees, a flawless mobile experience and a speedy deposit process I was hooked from day one. I will never use another brokerage. In fact I have signed up for Robinhood gold at 10 dollars a month to get leveraged trading and after hours access. Robinhood also just announced free options trading, what’s not to love??

8 years ago

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Anne Sainsbury Orem, UT

I just barely started using Robinhood and I love it. I am new to investments so this has been a stretch for me, but I have enjoyed my experience thus far. I love how easy it is to pull money from my bank into the app so that I can make quick investments. I also really love how I can quickly see how each of my investments is doing on a daily, weekly, monthly, 3 month, yearly, and 5 year scale.

5 years ago

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Landon Badoni Montgomery, TX

Robinhood is great for those who are breaking into the investing scene and want a simple and straightforward investing option that allows them to do things on their own. I've been using Robinhood for several months now and have only really scratched the surface of what it can do. One feature I appreciate is that I can set it to automatically invest in certain stocks on a weekly basis. That way I don't have to constantly go in a think about investing each week.

5 years ago

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Emily H West Wendover, NV

Process for signing up was simple, straightforward, and secure. I love that you can buy partial shares so you can invest exactly how much you have. The company is great about sending automatic updates via email about gains in the account. They constantly have promotions for getting benefits for recommending friends. For a novice investor like me, I felt really happy with my first investing experience with this company!

5 years ago

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David Stickles West Jordan, UT

In general I really like this platform. Very easy to get into investing with very little money commitment. You get to go in with as little or as much as you’d like. Some issues with trades being blocked but that was a very niche situation. Overall a very cool concept.

5 years ago

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Shannon B Salt Lake City, UT

I have loved Robinhood so far! It's amazing that they give you a free stock when you sign up and a free stock every time you refer a friend. I was intimidated to start investing, but Robinhood has made it so easy to start.

6 years ago

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jim mckee Rancho Palos Verdes, CA

I'm an experienced trader, yet couldn't resist no trading fees, so i put a small amount of capital to take a test drive, particularly that i trade options, and here is what i found, again, my opinion only.. 1. trading is a clunky experience, at best. They obviously want to keep it simple but do so at the cost of providing obvious navigational tools that all other sites have. 2. They have an option called 'replace', which means to replace an existing order that hasn't been filled. 3 times, the original order wasn't canceled so both the original order AND the replacement order were filled, and because i didn't have any buying power due to previous activity, i couldn't close the additional order. RH, no apology, originally tried to blame ME for the extra order, which they later walked back. The 3rd time it happened, they literally disappeared and wouldn't respond to my issues with their platform not functioning properly. Disappeared. 3. Customer Service..? Non-existent. The numerous interactions i've had with them have shown that their CS people know absolutely nothing about trading, options, or anything else about the site. Have a problem, like site malfunctions, shutdown, etc, which will happen to every site..?? No phone number to call, send an email and wait for a day to get a reply from someone who knows nothing... 4. They recognize etf's that come with higher volatility, such as VXX, and once you sell a holding in it, they limit the amount of available funds in your account to trade due to that higher volatility. Why...? I have absolutely NO clue. I don't need to be babysat. It's my money, don't tell me what i can trade or when. The hallmark of every bad online trading platform is terrible customer service. If that's what you're looking for, you're in the right place.

8 years ago

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Karen Torino Tallahassee, FL

My favorite aspect of Robinhood is that it lets you schedule when you would like to buy or sell a stock. For example, I can choose to shedule a stock to sell when it reaches a certain value. The app is easy to use and navigate.

4 years ago

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Daniel Cebrero Henderson, NV

I’ve use robinhood since day one and I love it. The interface is easy to use and very informative. It’s always worked well for me and it’s easy to buy stocks and cryptocurrency. I always use the recommendation links for my friends and family so they can get started

4 years ago

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Rachelle Orlando, FL

As an everyday millennial I was confused and speculative in buying and selling stocks but Robinhood gave me access in a way I never thought imaginable. Now little old me is making money off the stock market. I have them four starts because they give you access and explain how to use the app but that’s pretty much the extent of what they do. It would be nice if they could give tips, pointers, classes or something on how to proactively trade. Kind of figure it out on your own or do research yourself. Might lose some money at first because of that.

4 years ago

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KG Lebanon, NJ

I use Robinhood and think it’s pretty cool since I am not someone who is very savvy with trading. I don’t do a lot but that’s OK with Robinhood because it allows me to do as little as I want or I can increase it at any time. Before Robinhood I was afraid to do any trading but now it’s so simple using the app!

4 years ago

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Tommy McCarlie Chicago, IL

Although as they have gotten bigger they take longer to deposit funds for trading (and I would assume are making profits off of this) I still can't say no to Robinhood because it's easy to use and reduces the barrier to invest for beginners.

5 years ago

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Caitlin Fayetteville, AR

I have had nothing but a pleasant experience with Robinhood. Although, I have used other platforms that are similar, Robinhood exceeds expectations in being straight forward and helpful. They are truly the platform for any user from beginner to advanced. They also have a very quick response time on support. 5 stars!

5 years ago

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JG00 Saint Charles, MO

I joined Robinhood last year and the app was already easy to use and explained everything perfectly for beginners in investing. They're was a recent update that also made it look more visually appealing. I enjoy the "Fractional Shares" option that Robinhood has.

5 years ago

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Luke Swierczynski Troy, MI

They were great before the whole meme stock area. They really destroyed a lot of traders financials with broad company decisions. Aside from that they are nice if you're not managing a large portfolio and more so toss a few dollars at it every once in a while.

4 years ago

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Ben Webb Orem, UT

The app has a lot of great features but the company itself is shady and has the worst customer service I've dealt with in a long time. They locked my wifes account today and refused to let her withdraw her funds after a transfer was reversed, even though she had enough in her account to cover the transfer reversal. There reason being that the account was locked for "security purposes". The only thing their trying to secure is the interest they collect off floating your cash before depositing it to your account. They have two phone numbers listed, one just says to email them then hangs up on you, the second rings for a little while then goes to a voicemail box asking you to leave a message then stating that they don't check it. They also sell their users trades to high frequency traders and make a TON of money doing it, but can't be bothered creating a web chat or phone line for customer service or let you access your own money. From an investor standpoint, what they offer is extremely minimal. Candlestick charts for 10 min blocks only, absurd. Very basic charts anyway, No educational resources, very limited news releases, no paper trading, really their only redeeming feature is the cash management. Their trades are also some of the last to go through to be filled, so if you and 10 people from other brokerages put in a limit order at the same time, you're likely to get stiffed because it fills the others first. If you're even a little bit serious about investing, go somewhere else. TD Ameritrade is great, offers no fee trades, options and so much more than what Robinhood offers. If you like the easy mobile app try Webull, again offers the same things and so much more that someone who wants to get serious with investing needs.

6 years ago

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anna blaser St Louis, MO

I like that you don’t have to pay fees when you make a trade, but I don’t like that you can’t trade when everyone else is trading. They block you from certain stocks for a certain period.

4 years ago

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RONALD WHITE Show Low, AZ

I have used my monopoly money with RH and I am glad it was a small donation to their cause. I cannot recommend them as they do or did not have a customer service department except via email. The platform has been very slow in using to make trades especially for Limit orders and they took forever to get to fractional shares trading. Not a happy camper

4 years ago Edited January 3, 2022

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Andrea Thomas Richland, WA

Robinhood has been easy to use on my phone. It simplifies the investment industry and the trading is simple! I’ve had no problems with the app. Getting paid out to my bank has been easy too! I would recommend.

4 years ago

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Mandy Pesce Laurelton, NJ

Robinhood was extremely easy to sign up for and to buy stock with. It also gave a code to share with friends to get a free stock upon signing up. Easy to check in and buy or sell stocks whenever you want.

4 years ago

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Cam Hall Palmyra, VA

I learned a lot from Robinhood. Robinhood made it incredibly transparent to understand concepts like options trading, stock value, company earnings, and other incredibly complex ideas. But I also learned about clearinghouses and the rights you sign away during a few events in 2021 where they limited the ability to buy/sell stocks and cryptocurrency. It’s a difficult line to walk where you want your user to be informed and in control only to wrestle it away without communicating well why. I didn’t personally lose money, but they lost my faith during these events.

4 years ago

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Mandi Colorado Springs, CO

Robinhood started out as an exciting opportunity since I had never tried investing before. They have wonderful advice and insights on stocks and such when you are looking into your options for investing. However, the company fell out of favor for me when the company actively began limiting and restricting the user's ability to invest in certain companies when they were being rallied. This led me to trust the company less and stop investing in new stocks through them.

4 years ago

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Karen Torino Tallahassee, FL

Robinhood has been experiencing a lot of security issues lately, per their emails. They seem to lack some important stocks, but overall its not bad for stocks. My favorite feature is the ability to program when to buy or sell a stock based on it reaching a certain price.

4 years ago

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Abril Hunter Tallahassee, FL

I really enjoy the idea of the Robin Hood app however in my experience with its use I’ve had many difficulties. I still haven’t gotten to using all of the aspects of the application because it’s so hard to get a bank statement to upload as one of the first steps. Bank statements are no longer paper for many people so it makes it difficult to continue using the app. however I do really appreciate the work that Robin Hood does when it comes to investing mobile and easily.

5 years ago

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Eban Beltran Arlington, TX

Great service regardless of what’s in the news right now. They had to meet regulations but admittedly did a poor job of explaining that to their customers. Definitely not a service for the serious investor as it lacks even the most basic reporting to easily view the composition of your portfolio across companies and sectors.

5 years ago

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Abby Ashby Provo, UT

I like robinhood. I made $40 on it lol. So anything that makes me money is great. Looking forward to getting more into investing as I get more money... poor college student rn

5 years ago

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Karson Greenburg Salt Lake City, UT

I use Robinhood daily and am very satisfied. Its tricky to find a company that you can sincerely trust with your money and Robinhood has never let me down. It is also simple to carry out trades and keep and eye on your portfolio. They also offer option trading which is a plus.

5 years ago

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Ryan Harpenau Fayetteville, AR

Robinhood has a lot more stocks to invest in than Cashapp which is awesome and they also give new costumers a free share of a stock which is a great deal because you make money either way with it. I did have trouble connecting my bank account so that would be my only complaint.

5 years ago

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Tony Riverton, UT

Just opened a Robinhood account a couple of months back and use it exclusively to trade options. I don't love the ease of seeing my account positions and you have to go into messages to see trades. Other than that, it's extremely easy to make trades and lighting quick to settle funds.

6 years ago

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Chelsea Pleasant Grove, UT

Is amazing for your investments made over 700$ in a year and is super easy to do taxes with is nothing to difficult! Same with pulling out your money and adding some!

4 years ago

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Jec Canby, OR

This seems to be a company for the younger generation. My son uses Robinhood and has been very happy with them. I see a lot of Robinhood come across my desk at work (tax) as well.

4 years ago

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Rocio Diaz Tallahassee, FL

Robinhood is amazing and I like how it is a free service (up to a certain point). You can participate in cryptocurrency and also buy smaller shares of stocks.

4 years ago

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Aiyana Brown FL

robinhood makes investing easy! everyone i know who uses it has seen success in their investments both short and long term, so it definitely worth it.

4 years ago

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The Bean Spiller Provo, UT

This is a pretty good way to get into stock trading, but it should not be your be-all, end-all method of trading. They are pretty limiting with your stocks in terms of buying and selling, so if you're serious about trading, go with someone else. But like I said, if you're new to trading and interested in starting, Robinhood is a safe choice

5 years ago

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Britni Laidler Lindon, UT

Easy to use, I like that you can pick some stocks to watch. Wish there was a little guide to explain things to you. As a newbie it would have been nice. But overall I really enjoy it!

5 years ago

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Anya Lee Jacksonville, FL

Robinhood gave me the ability to really take charge in my investment portfolio. This app is user friendly which gives me the confidence to invest more.

5 years ago

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Tiffany I Hyattsville, MD

Robinhood is easy to use and I like that I can buy Bitcoin there as well. I love how the favorites are broken down on my mobile app so I can see their activity

5 years ago

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Conrad Ma American Fork, UT

Robinhood is great for buying and trading stocks. They give you a free stock when you sign up but it isn’t necessarily something to get your hopes up about.

5 years ago

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Becca Amiot Salem, VA

I recently started using Robinhood to get experience with stocks. I think it's great for beginners learning about investments.

5 years ago

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Rick Froid Park Ridge, IL

Very happy with Robinhood. Quick and easy sign up and very helpful site. Have learned a lot in the past couple years since joining.

4 years ago

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Sirdriz77 Fairfield, CT

I've had an account for a few months now and it's easy to use and understand. I'm not very experienced with online trading platforms and I didn't find it hard to figure out.

4 years ago

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Mason Allen Provo, UT

A simple way to get into stock trading for beginners like myself. Easy to navigate app interface & simple research information makes this app a good choice for trading.

5 years ago

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Jon Posey Riverton, UT

Hands down the best platform for online trading. It is so easy to use and helps illiterate traders like me dable in the market. Love it!

6 years ago

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Jon Moreno Sandy, UT

Robinhood was recommended by a friend and I have enjoyed my experience with some day trading. Plus you get a free stock when you sign up!

6 years ago

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Jordan Bell Orem, UT

Robinhood is kind of a confusing app. They aren't very clear about how to start trading stocks. It might be best to make it a little better for beginners

4 years ago

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Devin McClellan Eagle Mountain, UT

I have used Robinhood for a lot of trades. It is very simple and easy to use and I recommend it to everyone.

4 years ago

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Krista Griffith Tulsa, OK

I was given a free stock. It has done nothing but lose money. I know that's not Robinhood's fault, but maybe don't give out the poor performers as an incentive to use your platform.

4 years ago

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Shauna Lyons Omaha, NE

Easy to use. Was my first time buying stock. But walks you right through process. Only wish notifications when stock should be sold, I have no ideal

4 years ago Edited January 1, 2022