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4 days ago · Robinhood's taxable brokerage accounts allow margin trading, although its IRAs do not.Free accounts charge margin rates of 6.5% plus the upper bound of the federal funds rate target range, while ...
- Robinhood
Apr 12, 2024 · Within a year of coming online in 2013, Robinhood had about half a million users—measured by funded accounts, and the company had roughly one million in 2016. User ranks jumped to six million by ...
Apr 12, 2024 · Robinhood offers trading for more than 5,000 stocks and ETFs. Plus users can receive one free stock for referring a friend. Read our expert review for more pros, cons, and services.
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- Who Should Use Robinhood?
- Robinhood Review: Where It Shines
- Robinhood Review: Where It Falls Short
- Recent Changes: Iras, Phone Support, Stock Screeners
- Robinhood’s History of Controversies
- Frequently Asked Questions About Robinhood
- Final Thoughts
Robinhoodis a self-directed investment platform that opened in 2012. You’re eligible to use Robinhood if you: 1. Are at least 18 years old 2. Have a valid Social Security number 3. Have a legal U.S. residential address 4. Are a U.S. citizen, permanent resident or have a valid U.S. Visa I’ve used Robinhood for years. It’s my go-to investment platfor...
Robinhood has served an important role in making the stock market accessible to everyone and encouraging a younger generation to consider investing. If you read a Robinhood review that doesn’t mention that fact, it’s probably incomplete.
The simplicity of the entire Robinhood experience is a double-edged sword. I’ve never experienced such an easy-to-use investment platform. Robinhood has made a clear judgment to prioritize ease of use over almost everything else. If the goal is to attract otherwise-uninterested people to learn more about investing and long-term financial planning, ...
Don’t look now, but Robinhood is starting to grow up. The investment platform has added a steady drip of new features that has it closing the gap with the more established, full-service discount brokers. That gap remains considerable in certain areas. But Robinhood continues to move at a fast pace.
1. Access to Options Trading and the Alexander Kearns Suicide
Alexander Kearns, a 20-year-old college student from Naperville, Illinois, committed suicideon June 12, 2020, after his Robinhood account showed a negative cash balance of $730,165. Kearns had been trading optionson Robinhood. His suicide note reportedly expressed disbelief that the platform had allowed him “to get assigned almost a million dollars’ worth of leverage.” News reports after Kearns’ death indicated he had not actually built up nearly $750,000 in debt. But it drew attention to how...
2. Controversial Order Flow Practices
When you buy stock, there must be a seller to complete the trade. Unless you specify your bid price for a stock, a matchmaker of sorts — known as a market maker —will help execute your trade. For popular stocks, the difference — or spread — between buyers’ bid prices and sellers’ asking prices tends to be small. But for more volatile stocks with less trading volume, the spread can be larger. Handling those orders gives market makers insight into how much demand there is for specific stocks an...
3. Outages During High-Volume Days
Technical and performance issues have plagued Robinhood’s trading platform, especially on volatile, high-volume days. According to DownDetector, Robinhood experienced outages every month in 2020. That included 21 outages in March 2020. An outage on March 2 lasted for nearly 17 hours. The S&P 500 rocketed up nearly 116 points that day — or 3.9%. As stocks surged higher in the wake of the coronavirus crash, Robinhood traders did not have access to their platform.
Who Are Robinhood’s Competitors?
Few well-known companies are apples-to-apples competitors to Robinhood. Webullis probably the largest name that offers a similar product. However, you can access many of the same services through most of the traditional discount brokers, some of which are now free (see next question). They tend to offer superior research, customer service, access to more products and better trading platforms.
Do Any of Robinhood’s Competitors Offer $0 Trades?
Yes. Charles Schwab and Fidelity Investments offer $0 stock trades. TD Ameritrade, TradeStation and E*TRADE also are among the brokers that now offer free trades.
Is Robinhood Completely Free?
Yes, at a certain level of access. Robinhood does not charge a penny for stock, options and cryptocurrency trades. However, Robinhood Gold costs $5 per month after a 30-day trial, and you have to have Robinhood Gold to get access to common investing research tools such as Level II market data and Morningstar reports. And without Robinhood Gold, you can’t trade on margin. Robinhood also accepts payment for order flow (PFOF), so it does make money off of your trades. There are also fees for som...
Robinhood is so easy to use. It has helped create a powerful subculture. The combination of those things can tempt those without much market experience to execute riskier trades than they should, to assume they can beat the market or to expect outsized returns. The entire Robinhood experience is so streamlined that it can tempt even “buy and hold” ...
- Self-directed investment platform
In July 2021, Robinhood has been fined $70 million by FINRA for causing harm to customers, such as serious platform outages or lack of due diligence when customers applied for options trading. On December 17, 2020, Robinhood has been fined $65 million for misleading customers about how the company makes its revenue from their clients' trades.
Mar 18, 2024 · Robinhood has no minimum to open an account and start investing, plus there's a 0% fee. However, fractional shares have a $1 minimum and a $2,000 minimum requirement to access margin trading. To ...
Aug 26, 2020 · Therein lies the secret for beginning Robinhood investors looking to make a killing: Accept most of what you need to know you don't. Spread your bets evenly. Don't sell your winners. Time and the ...
