Robinhood App Review – Benzinga

This article was originally published on this site

The premise of Robinhood should be familiar to those with an awareness of the trend of “disruption” infiltrating everything from transportation to shaving. Robinhood is a broker with the ambition of reinventing what it means to be a trader or investor. That means that, at least for now, their primary audience is young, tech-savvy and circumspect when it comes to the risks of the market.

The platform appeals to this demographic by offering the bare essentials of investment products and services. That means that those seeking to purchase and sell bonds, options contracts or mutual fund shares will have to look elsewhere. At the moment, the only vehicles available to Robin Hood Investors are domestic exchange stocks and ETFs.

Customer Review

Simple, intuitive and dumb-proof app for novice traders and as a bonus it is commission

free, good bye eye popping fees. If they can improve their customer service round trip time will give it a top rating. – 4-star Google Play review from Mohan Maiya – September 11,2017

WHO’S IT FOR?

Whether you are interested in Robinhood will largely depend on your preferred level of complexity when it comes to trading. Those looking for something simple will absolutely find Robinhood worth their time, while those interested in a diverse playground of trading options will probably turn their nose up at the app.

New Traders and Investors

When it comes to catering to young novices, Robinhood largely succeeds. Given that the only products on offer are stocks and b While the app is light on helpful resources for those new to the markets to learn on, the presentation and interface are clear enough that, with a little independent research, even the greenest users will get quickly the hang of it.

People Who Like Free

Not only does Robinhood offers free access to the platform itself, it also doesn’t charge commissions on any trades made thereon. While there are some charges and minimum balances hiding away on the platform, mainly for account transfers, day traders and those who opt for the $10/month Robinhood Gold premium service.

Mobile Traders

Those who like trading a few securities on the go have little reason not to at least try Robinhood. However, this section was included mainly because those who hate trading on their smartphone or tablet should stop reading now as, at this time, Robinhood is only, available as a mobile app.

FEES AND COMMISSIONS

No fees and no commissions.

While that much is straightforward, there are costs to consider in using Robinhood, especially those who want to do it frequently. Day traders, for one, will find that, unless they have a minimum balance of $25,0000, they can only make three intraday trades over any five-day period or else their account will be suspended. Dividend traders also take a hit on taxes as Robinhood does not currently offer the option to reinvest the payouts back into the company.

Robinhood Gold

There is the premium Robinhood Gold service, which allows traders with a minimum $2,000 balance to open a margin account. Gold also provides them with the opportunity to instantly transfer $1,000 into their account, circumventing a 4-5 day verification period on deposits.

PLATFORM AND TOOLS

As stated, Robin Hood’s platform is an extremely elegant, if sparse offering. UI and design aficionados will likely approve of most of the choices. Traders and investors, on the other hand, will have to make due with an extremely short list of toys to play around with.

Interactive Charts and Watchlists

However, Sometimes that elegance gets in the way of practicality, as is the case with Robin Hood’s charts, which do not show price or date ranges unless the user touches the chart.

Corporate Actions Tracker

One clever element included for the benefit of novices is the Corporate Actions Tracker, which is basically an updating news feed of company or executive activity. While not the most sophisticated aspect of the platform, it is a useful resource for anyone who might be ignorant of information that could impact their portfolio

RESEARCH

None to speak of. Part of Robin Hood’s secret to providing no-fee trading is by cutting out the fluff and reducing overhead, and that includes outside research.

CUSTOMER SERVICE

Perhaps the iffiest aspect for those considering Robinhood as their first broker is that getting in touch with a customer service rep can be a crapshoot, particularly during market hours. They do offer phone and email support, but if you have a time-sensitive query to ask the broker about your account, you might be out of luck. On top of that, Robinhood doesn’t have any brick-and-mortar locations for consultations, although that might not matter much to their core demographic.

Commissions

Free

Best For
  • Low cost stock trading
  • Beginners looking to start trading
  • Investors on the go
  • Penny stocks

TAKEAWAYS

While Robinhood may sound like a mixed bag, there are a lot of reasons to at least try it out, not the least of which is it being free. If you’re a hardened day trader, a dedicated fan of research or someone who just can’t stand mobile trading then, sure, you have a good reason to forego Robinhood.

However, there is nothing inherently flawed about what Robinhood is aiming to be. It is not a comprehensive trading platform (yet), and it has a lot of the same rough edges a lot of tech startups have. However, it is still a broker, and what it needs to do, it does admirably and with style.