Robinhood is one of the well-known trading platform for many stocks traders/investors worldwide who offer zero commission fees for trading in their platform.
In this Robinhood Review I will talk everything that you need to know about the broker for you to choose on when it comes to selecting the best platform for trading stocks, option, cryptocurrency and ETFs.
The Robinhood is an American company with over 9 years into the financial business. The company was established in 2013 and regulated by (SEC) Security and Exchange Commission. The robinhood user can trade stocks, and ETFs on major US exchanges NASDAQ and NYSE.in addition to trading cryptocurrencies
Robinhood Pros and Cons
Pros:
- Trade stocks options and Cryptocurrencies
- Zero commission fees
- No minimum account balance
- Allow fractional ownership
- Regulated broker
- Easy to used user-friendly
Cons:
· Absent of forex and commodity trading facility
· No Demo account
· One Payment Method ACH (No debit card and e-wallet deposit payments)
· Not enough technical analysis tools for experienced traders/investors
· No retirement accounts.
· No mutual funds or bonds.
· Limited customer support.
· Lack of educational Resources unless for Gold account @ $5 per month fees
Robinhood Tradable Assets
Stocks
The robinhood user can access the major stocks exchanges market NAQDA and NYSE and the platform allow the fractional share. Mean you can own the fractional percentage of expensive share with the little money you have as investment.
Example: you only have $200 as an investment in Robinhood platform and you want to own google stock which currently price at $2,765.56. The robinhood will allow you to own fractional ownership of google stock with your $200
Cryptocurrencies
The Robinhood user can buy, sell, and hold some cryptocurrency. But there are some limited number of cryptocurrency available in their platform. You can only trade seven (7) number in crypro right now which including:
· Bitcoin (BTC)
· Bitcoin Cash (BCH)
· Bitcoin SV (BSV)
· Dogecoin (DOGE)
· Ethereum (ETH)
· Ethereum Classic (ETC)
· Litecoin (LTC)
However, robinhood allow their user to buy cryptocurrencies on fractional share likewise on stocks.
ETFs
The robinhood user can trade ETFs including S&P 500, Dow Jones and many more big ETFsStock Options
The Robinhood allow their user to trade options which is based on the market speculation either the prices of an assets will go up or down within a stipulated time frame. If your prediction is correct you will get some profit while if you were wrong you also loss your investment.
Robinhood Commissions Fees
The Robinhood trading platform will not charge you a single penny for trading stock, ETFs, crypto and option trade. But it’s important to know that Robinhood platform is not supporting Forex trading, indices and commodities right now.
Below are the summary of the Robinhood commission fees for their services|
Fees Types |
Charge |
|
Account opening |
Free |
|
Gold Account |
$5 per Month |
|
Platform fees |
Free |
|
ACH Deposition |
Free |
|
ACH Withdrawal |
Free |
|
Margin Rate |
$2.50% |
The Robinhood margin trade is accessible by Golden account and with a minimum balance of $2000. And the platform will also charge you 2.5% rate to be paid to the platform. This will be multiple based on the sizes and duration of your margin position annually.
Robinhood User Experience
The Robinhood platform are very user-friendly to both experienced and inexperience traders/investors because you can navigate everything you want easy the search box is available, Watchlist and many more feacture. In addition to awesome graphic interface. In both website and mobile app.
Robinhood Charting, and Analysis Tools
The Robinhood trading platform have some charting tools including Candlestick,and line chart. Interm of analysis tools the platform have few tools for technical analysis which is not sufficient for an experienced traders/investors these only have EMA, MACD, RSI and SMA.
Additionally, if you want access to Level II market data, you will need to upgrade to a Gold account. In terms of fundamental research, Robinhood offers in-depth reports on over 1,700 stocks. This is provided by Morningstar, albeit, you once again need to have a Gold account to gain access
Robinhood Account Types
The Robinhood offer two different type of account in their platform which include; Standard accounts and Gold account.
Standard Account: with the standard Robinhood account you get access to buying and selling or holding stocks, ETFs, crypto and options trade with zero commission fees charge. However this is a basic account offer by Robinhood and there is no minimum amount deposition for this type of accounts.
Gold Account: The Robinhood charge $5 per month for Gold Robinhood accounts. This account has some benefits to their user as you will get some additional feature on like the standard type which is basic.
The below show the main different between Standard and Gold Account
|
Items |
Standard Account |
Gold Account |
|
Deposition |
Up to $1000 instantly |
$5,000-$50,000 |
|
Research and Data |
No |
Level II data and Reports |
|
Margin Trade |
No |
Trade with minimum of $2000 |
Robinhood Mobile App
The Robinhood mobie app are user-friendly with beautiful interface you can do anything from trade, buying and selling, funding your robinhood account within the app like the main website. The robinhood mobile app is available for android and iPhone user to download in Google play store for Android user and Apple store for Iphone User.
Robinhood Payments Method
Robinhood platform accepts only deposits and withdrawals through ACH. However, there is not any charge attached to deposition and withdrawal in Robinhood and the funding is go instantly to your Robinhood account.
It’s important to know that based on your types of Robinhood account if you’re using standard account only $1000 deposition will go instantly.
Example: if you deposit $5,000, and only $1,000 will appear in your account straight away while the balance of $4,000 might take a couple of days to arrive. But if you are using Gold account you can deposit up to $50,000 instantly at once.
Robinhood Bonus
Robinhood offer free one (1) stocks for just opening an account and linking your bank account and follow their conditions in your promotion. You will keep your free stocks and sell it atleast after two (2) trading days. The value of your stock will be randomly selected by the Robinhood platform. Although this can be as high as $225 - 98% will sit between $2.50 and $10.
Robinhood Contact and Customer ServiceRobinhood customer service access by sending them a message through their platform once you log in, into your account and raising a support ticket. But the response may take some days before you got a reply from your queries. Email, social media, in-app request-to-call service 24/7. Are the available support in robinhood.
Robinhood Safe and SecurityRobinhood are regulated platform by relevant financial regulators in US, Robinhood customers are safe and secure their cash and digital asset are protected. Robinhood are member of SIPC, which protects securities customers its members up to $500,000 including $250,000 for claims for cash. In addition to that all robinhood accounts are protected with 2FA for new devices. This help Robinhood to ensure it’s really the real owner signing in his/her account
How to Start Trading with Robinhood
Step 1: Create Robinhood Account
Go to their Website click sign up and fill up the relevant information provided which include; personal information, contact details, social security number. Then submit your application form and wait for the verification message through email address provide during fill up form.
The verification process including verify identity by uploading some documents and within 5-7 days your account will be successfully opened. Step 2: Link ACH to RobinhoodNow you will be asked to link your ACH account with Robinhood. You will be guided through the process step-by-step and this should not take more than a couple of minutes to complete.
Step 3: Deposition of Funds
Once your ACH account is linked with Robinhood - you can transfer funds. There is no fee and any deposit up to the first $1,000 will be credited instantly. Anything over this amount could take a couple of days to arrive - unless you are on the Gold account.
Step 4: How to Buy on RobinhoodAs soon as your Robinhood account is credited you can proceed to start making investments. The easiest way to do this is to search for the asset or market you want to trade. Then, you just need to enter the size of your investment and confirm the order.
Step 6: How to Sell on RobinhoodOnce you have completed your trade - the assets will appear in your portfolio. At any time during standard market hours, you can sell your investment from within your portfolio dashboard. You won't pay any commission to sell on Robinhood.
RISK DISCLAIMERS
This website includes information about cryptocurrencies, (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money. knowaboutcryptocurrency.blogspot.com encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved. All contents on this site is for educational, and informational purposes only and does not constitute any financial advice. Consult relevant financial professionals in your country of residence to get personalized advice before you make any trading or investing decisions. Knowaboutcryptocurrency.blogspot.com may receive compensation from the brands or services mentioned on this website at no additional cost to you.
Risk Warning: Trading CFDs on leverage involves significant risk of loss to your capital.
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