{"id":505274,"date":"2023-01-03T11:40:00","date_gmt":"2023-01-03T11:40:00","guid":{"rendered":"https:\/\/www.publicfinanceinternational.org\/?p=505274"},"modified":"2023-01-09T09:59:46","modified_gmt":"2023-01-09T09:59:46","slug":"robinhood-review","status":"publish","type":"post","link":"https:\/\/www.publicfinanceinternational.org\/robinhood-review\/","title":{"rendered":"Robinhood Review 2023"},"content":{"rendered":"
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\"Robinhood<\/figure>\n\n<\/div><\/div><\/div>\n\n
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Robinhood is an American trading platform for beginners, founded in 2013 and headquartered in Menlo Park, California. Robinhood is best known for offering $0 stock, ETF, options, and cryptocurrency transactions, as well as an easy-to-use website and a mobile trading app that appeals mostly to young investors.<\/p>\n\n<\/div><\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n\n

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Summary<\/h2>\n\n\n\n

Robinhood is a broker that is great for beginners and younger investors. It is mostly free and easy to use. It offers a wide variety of assets to trade with, but it does not offer a demo account and is only limited to US clients. It is great for $0 stocks, ETFs, options, and cryptocurrencies.<\/p>\n<\/div><\/section>\n\n\n\n

Overview<\/h2>\n\n\n\n

Here is a quick overview of Robinhood.<\/p>\n\n\n\n

Feature<\/th>Robinhood<\/th><\/tr><\/thead>
Founded<\/td>2013<\/td><\/tr>
Minimum Deposit<\/td>$0<\/td><\/tr>
Deposit Fee<\/td>$0<\/td><\/tr>
Withdrawal Fee<\/td>$0 <\/td><\/tr>
Inactivity Fee<\/td>$0<\/td><\/tr>
Demo Account<\/td>No<\/td><\/tr>
Minimum Trade<\/td>Varies<\/td><\/tr>
Maximum Trade<\/td>Varies<\/td><\/tr>
Payment Method<\/td>Credit cards, Debit cards, PayPal, Bank Transfer<\/td><\/tr>
Funding Method<\/td>Bank Transfer<\/td><\/tr>
Available Cryptocurrencies<\/td>BTC, ETC, ETH, DOGE, BCH, BTG, OMG, XMR, LSK, QTUM, LTC, NEO, DASH, XRP, XLM, ZEC,<\/td><\/tr>
Islamic Account<\/td>No<\/td><\/tr>
Products<\/td>Stocks, ETF, Options, Crypto<\/td><\/tr>
Platforms<\/td>Web Trader, Android, iOS, Tablet<\/td><\/tr>
Share Dealing<\/td>Yes<\/td><\/tr>
Number of shares<\/td>5,000<\/td><\/tr>
Country of Regulation<\/td>USA<\/td><\/tr>
Regulation<\/td>Securities and Exchange Commission (SEC) & Financial Industry Regulation Authority (FINRA)<\/td><\/tr>
Customer Support<\/td>Email and social media<\/td><\/tr>
Our Score<\/td>4\/5<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n
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Best alternative: Interactive Brokers<\/mark><\/h2>\n\n\n\n

OUR SCORE: (5\/5)<\/p>

\u2605<\/span>\u2605<\/span>\u2605<\/span>\u2605<\/span>\u2605<\/span><\/div><\/div>\n\n\n\n

Interactive Brokers is best for low costs, superior execution and wide range of markets. Investors can trade stocks, forex, options, futures, bonds, and funds across 135 markets from a single account.<\/p>\n\n\n\n

Read full Interactive Brokers Review<\/a><\/p>\n\n\n

\n\nVisit Interactive Brokers<\/span><\/path><\/svg><\/span><\/a>\n\n<\/div>\n<\/div><\/div><\/div>\n<\/div>\n<\/div><\/div>\n\n\n

If you are looking for a great alternative, make sure you also check our review of eToro<\/a> and AvaTrade<\/a>. For active day traders, we analyzed the best mobile day trading apps<\/a>.<\/p>\n\n\n\n

Robinhood Pros and Cons <\/h2>\n\n\n\n

Robinhood has many great features that make it a good broker, and being “free” and easy to use are major ones. However, it has some downsides that make clients skeptical about it. Below, we've listed the main advantages and disadvantages that you should consider before starting trading on Robinhood.<\/p>\n\n\n\n

Pros<\/th>Cons<\/th><\/tr><\/thead>
Low trading costs<\/td>Absence of retirement accounts<\/td><\/tr>
Cryptocurrency trading<\/td>No mutual bonds or funds<\/td><\/tr>
Possible to trade a little amount of cryptocurrency<\/td>Little available resources<\/td><\/tr>
Easy to use<\/td>Can be used only by US clients<\/td><\/tr>
Efficient web and mobile trading platforms<\/td>Limited customer service<\/td><\/tr>
Instant access to deposited cash<\/td>Limited products<\/td><\/tr>
No account minimum<\/td>Little educational material<\/td><\/tr>
Free ETF trading and US stock<\/td><\/td><\/tr>
Account creation is fast and completely digital.<\/td><\/td><\/tr>
Fee structure is transparent<\/td><\/td><\/tr>
No minimum deposit<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Compare Robinhood to Similar Brokers<\/h2>\n\n\n\n
Broker<\/th>Robinhood<\/th>eToro<\/th>Webull<\/th>Trading 212<\/th><\/tr><\/thead>
Founded<\/td>2013<\/td>2007<\/td>2017<\/td>2006<\/td><\/tr>
Minimum Deposit<\/td>$0<\/td>$50<\/td>$0<\/td>$1<\/td><\/tr>
Commission<\/td>Varies<\/td>Varies<\/td>Varies<\/td>Varies<\/td><\/tr>
Inactivity Fee<\/td>No<\/td>Yes<\/td>No<\/td>No<\/td><\/tr>
Platforms<\/td>Web, iOS, Android<\/td>Web, Windows, iOS, Android<\/td>Web, Windows, iOS, Android<\/td>Web, Windows, iOS, Android<\/td><\/tr>
Languages<\/td>16<\/td>5<\/td>2<\/td>16<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Regulation<\/h2>\n\n\n\n

Robinhood is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulation Authority (FINRA).<\/p>\n\n\n\n

Robinhood Trading Platform<\/h2>\n\n\n\n

We listed below all the platforms offered by Robinhood.<\/p>\n\n\n\n

Trading Platform<\/th>Robinhood<\/th><\/tr><\/thead>
MT4<\/td>No<\/td><\/tr>
MT5<\/td>No<\/td><\/tr>
cTrader<\/td>No<\/td><\/tr>
Web Platform<\/td>Yes<\/td><\/tr>
Android<\/td>Yes<\/td><\/tr>
iOS<\/td>Yes<\/td><\/tr>
Microsoft<\/td>No<\/td><\/tr>
Price Alerts<\/td>Yes<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Web Trading Platform<\/h3>\n\n\n\n

The web trading platform is easy to use and provides clients with a great user experience. Although the platform cannot be customized, the default workspace is well-designed, straightforward, and logically arranged.<\/p>\n\n\n

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Robinhood offers a two-step login, which is more secure than simply entering a username and password. The search tools are excellent in that you will always be able to find what you are looking for. You can use the search bar to perform a basic search or use tags to narrow down your results.<\/p>\n\n\n\n

Under the ‘Collections' tab, you can view some linked tags if you click on a stock. When you click on a tag, you'll get a list of all stocks with that tag. If you want to compare two things side by side, this is a useful tool.<\/p>\n\n\n\n

If you're only interested in Apple, for example, you can simply click on that tag to see the whole list. For a wide range of events, you are able to push notifications and set alerts, like for price movements, dividend payments, money transfers, orders, corporate actions, and earning announcements.<\/p>\n\n\n\n

The portfolio and fee report functions on Robinhood's web trading platform are simple to grasp. You can see the average cost of your stock portfolio as well as its returns. There's also a pie chart that shows how well-diversified your portfolio is.<\/p>\n\n\n\n

Mobile Trading Platform<\/h3>\n\n\n\n

The Robinhood mobile trading platform has a similar design and experience as the Robinhood web trading platform. Because the detailed stock screener isn\u2019t available on iOS and Android, the research capabilities differ a little bit from those on the web platform.<\/p>\n\n\n\n

The mobile trading platform of Robinhood offers a secure login. It uses two-step authentication, with the possibility of employing biometric authentication as well.<\/p>\n\n\n

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Markets and Products<\/h2>\n\n\n\n

Although Robinhood offers a solid range of cryptocurrencies, its stock and exchange-traded funds (ETFs) products fall behind those of competitors.<\/p>\n\n\n\n

Robinhood gives access to over 5,000 stocks and ETFs. Most of them are traded on major stock exchanges in the United States. There are also some non-US stocks available, which are offered through ADRs<\/a> instead of foreign exchanges.<\/p>\n\n\n\n

Options<\/h3>\n\n\n\n

As for options, you can only trade stock and stock index options. Only bigger stocks are eligible for these choices.<\/p>\n\n\n\n

Cryptocurrencies<\/h3>\n\n\n
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With Robinhood, you can trade big cryptocurrencies like Bitcoin and Ethereum, as well as smaller ones like Stellar and Monero. There are the available cryptocurrencies on Robinhood:<\/p>\n\n\n\n