Robinhood Review
Leverage:
Regulation: SEC, FINRA
Min. Deposit: US$0
HQ: USA
Platforms: Robinhood Platform
Found in: 2013
Robinhood Licenses
Robinhood Securities, LLC - authorized by SEC (USA) registration no.8-69916
Leverage:
Regulation: SEC, FINRA
Min. Deposit: US$0
HQ: USA
Platforms: Robinhood Platform
Found in: 2013
Robinhood Licenses
Robinhood Securities, LLC - authorized by SEC (USA) registration no.8-69916
Robinhood is an innovative broker offering commission-free investing and exchange trading of stocks, ETFs, options, and cryptocurrencies headquartered in California, US. The broker is a publicly traded company listed on Nasdaq with over 22.8 million funded accounts and 15.9 million monthly active users.
Since its establishment in 2013, the broker has walked a path of constant development and has become one of the preferred trading providers in the US.
This is indeed an absolutely progressive trading opportunity, as previously, the majority of US residents could only trade through offshore entities, which we never recommend trading with due to their lack of reliability and regulation.
Based on our research, Robinhood is a good and reliable broker offering exceptional conditions for trading with zero commissions and instant deposits. The broker is highly regulated and provides quality customer service that is available 24/7
As for the cons, the broker has a limited range of tradable instruments and doesn’t offer FX and CFDs, also the platform is basic with poor educational section. Also, the funding methods are limited, too. And is only available to US clients.
Advantages | Disadvantages |
---|---|
Highly regulated by SEC | Doesn't available to non-US clients |
Real Stock and Cryptocurrency Trading | No demo account |
Zero Commissions | Limited funding methods |
24/7 support | Poor educational sector |
Instant deposits | No Platform altenratives |
Broker Listed on NASDAQ |
🏢 Headquarters | USA |
🗺️ Regulation | SEC, FINRA |
📉 Instruments | Stocks, ETFs, Options and Cryptocurrencies |
🖥 Platforms | Proprietary |
💳 Minimum deposit | US$0 |
💰 EUR/USD Spread | Does not offer Forex |
💰 Base currencies | USD |
🎮 Demo Account | No |
📚 Education | Robinhood Learn Center with educational articles |
☎ Customer Support | 24/7 |
Robinhood is one of the world’s leading brokers, offering exceptional service and trading conditions for traders offering real stock and crypto trading with commissions free of charge. The broker offers a great range of trading instruments allowing to use margin trading to maximise the return on investments.
Ranking | Robinhood | Ducascopy | AvaTrade |
---|---|---|---|
Our Ranking | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
Advantage | No Commission | Education | International Trading |
Nevertheless, Robinhood doesn’t offer FX or CFD trading with a limited range of trading platforms and a poor educational section. Also, the broker is not available for international trading. So, it is always advisable to check out other brokers for diversity:
Yes, Robinhood is a safe broker since is regulated by two major regulatory organizations SEC and FINRA also is a member of SIPC (Securities Investment Protection Corporation).
Yes, Robinhood is a regulated broker with its trading name used by Robinhood Securities LLC, which is regulated by the world-respected federal regulator the SEC (The U.S. Securities and Exchange Commission) and self-regulatory organization FINRA (The Financial Industry Regulatory Authority).
Our conclusion on Robinhood Reliability:
Robinhood Strong Points | Robinhood Weak Points |
---|---|
Highly regulated with an excellent reputation | Not available for non-US traders |
No offshore entities | Doesn't offer negative balance protection |
Regulated by FINRA and SEC | |
Compensation Scheme |
As a FINRA member Robinhood LLC falls under the US investor protection scheme, the SIPC (The Securities Investor Protection Corporation). The limit for the compensation from the SIPC is $500,000 including a $250,000 cash limit.
Robinhood Account types are not diverse offering two main account types: Robinhood Instant which is the default account type offered upon signing up and Robinhood Margin which gives access to more buying power through margin investing.
Pros | Cons |
---|---|
Fast digital account opening | No demo account |
No minimum deposit | Limited range of accounts |
Additional features | |
No deposit/withdrawal fees |
Robinhood trading instrument range includes Stocks, ETFs, Options and Cryptocurrencies. All the above-mentioned assets are offered commission-free, all the assets are offered on an exchange basis, no CFD trading is offered, also the broker doesn’t provide forex trading.
Our Score of Trading Instruments:
Robinhood Fees are free of commission regardless of the type of account you’re transferring from. When it comes to options trading, Robinhood does not charge a per-contract fee. There is also no account opening, withdrawal, account maintenance or inactivity fees.
Our Conclusion on Robinhood Fees:
Fees | RobinHood Fees | Dukascopy Fees | Interactive Brokers Fees |
---|---|---|---|
Deposit Fees | No | No | No |
Withdrawal Fees | No | No | No |
Comission based fee | Yes | Yes | Yes |
Fee ranking | Low | Low | Low |
Robinhood Funding methods are quite limited offering only debit cards or bank transfers to deposit money. Credit cards or e-wallet payments are not supported. The broker made it a bit easier and faster with the Instant Deposit feature. It gives traders immediate access to $1,000 after they initiate a deposit.
Also, with Robinhood Gold, they can get even bigger Instant Deposits—up to $50,000 depending on their brokerage account balance and status.
Here are some good and negative points for Robinhood funding methods found:
Robinhood Advantages | Robinhood Disadvantages |
---|---|
Fast digital deposits | Limited funding methods |
0$ deposits and free withdrawals | |
No minimum deposit requirements |
There is no minimum deposit requirement, again due to the tailored solutions Robinhood provides.
Robinhood minimum deposit vs other brokers
Robinhood | Most Other Brokers | |
Minimum Deposit | $0 | $500 |
The broker does not charge any withdrawal fees. Robinhood’s withdrawal is done only through Debit Cards and Bank Wire. Also, the broker mentions that the client is responsible for all charges occurring upon the money transfer which are generally around $25-$50.
To withdraw money from Robinhood you need to find the transfers section in your account then find your bank account or debit card and enter the amount you would like to withdraw, then press “Confirm” to initiate the withdrawal.
Once the transfer is initiated, the bank withdrawal could take 5 business days to happen. Withdrawal time could be shorter depending on your bank. However, a debit card or an instant transfer withdrawal typically takes 10-30 minutes but might take longer depending on your bank.
Robinhood trading platform offering consist of only proprietary platform available through the web and mobile with a simple design and intuitive navigation. It focuses on the core basics of investments making it a poor choice for investors seeking more sophisticated platforms.
Platforms | Robinhood | Dukascopy | Interactive Brokers Fees |
---|---|---|---|
MT4 | No | Yes | No |
MT5 | No | No | No |
Own Platform | Yes | Yes | Yes |
Mobile Apps | Yes | Yes | Yes |
Robinhood provides a powerful, but simple and easy-to-use web trading platform with research and discovery tools. The expansive research and discovery tools aimed to make every trader a better-informed investor. There are many cool advanced features on the web platform, including Analyst Ratings, News and Fundamentals, Collections of Stocks etc.
Mobile trading platform is also equipped with plenty of features, including customizable alerts, a news feed, candlestick charts and the ability to listen live to earnings calls. It is available for both iOS and Android devices.
There is no desktop trading platform in the broker’s offer.
Robinhood’s customer support may not be the most comprehensive, but their service makes up for it with speedy and attentive responses. While email and social media are available as the only communication channels, there also exist some in-app request options that provide assistance available 24/7.
See our find and Ranking on Customer Service Quality:
Pros | Cons |
---|---|
Quality customer support and fast responses | Limited contact methods |
24/7 support |
Robinhood Education section will only be useful to beginners since it is still developing and yet can offer a limited range of resources. There is a Robinhood Learn section which offers hundreds of digestible articles on the basics of investing, investing lingo, and market trends.
Based on our research, Robinhood is good for beginners given that the platform is user-friendly and easy to use. Also, the broker has zero commissions which is another great advantage. However, poor education can be a major drawback for beginners, so we recommend using third-party education providers.
Based on our Robinhood Review, we revealed the broker is reliable with a good reputation and has a quite competitive offering for trading. It is a good choice for a well-regulated broker that offers zero-commission trading, in fact, it is one of the few brokers that offer zero commissions on cryptocurrencies. The broker also offers instant transfers making it possible to deposit or withdraw within a few seconds.
However, the readers should consider the drawbacks we mentioned as well as the trader experience fit. The broker lacks a good education section. Also, some experienced brokers can find the platform missing some important analytical tools.
Based on Our findings and Financial Expert Opinion Robinhood is Good for:
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