About two weeks ago, I downloaded a fairly new trading application called Robinhood and thought I would share my initial review with you today.
I have wanted to trade stocks for the longest time, but the fees that come with trading or going to a broker have always hindered me. If you are like me and do not have much money to trade, these fees can bring you profits. Robinhood tempted me to sign up for the fact that the app is free but also because a promotion allowed me to get a free stock with registration.
Is it worth downloading Robinhood?
It’s been a long time since I’ve been excited to make any kind of money online. The internet is saturated so much in almost every market and many companies are looking to suck you up so they can make a quick profit while you do nothing. Robinhood is not that company.
Once you sign up for the app, you attach Robinhood directly to your bank account. I ended up getting a free stake in Fit Bit and eventually ended up selling that stock. Robinhood notes that there is a 1 in 1000 chance of getting a big stock like Apple. From the first stock I got along with the 4 I now get for referrals, the best stock I got was valued at $ 10. Nothing big, but free money is free money. You must hold the shares for 3 trading days before you can trade or sell your shares.
How does Robinhood make money?
Similar to a bank, Robinhood makes money (and is able to give free shares) because they collect interest on the money you put into your account. As long as their customers ’acquisition costs are below their interest gains, Robinhood will be a profitable business. Seeing that some users have over $ 100,000 in their account, you can easily see why Robinhood is able to offer free trading.
That does not mean it is perfect.
Daily trading is something you can not do unless you have over $ 25,000 in your account. I think you can get up to 3 or 4 trading days in a 5 working day period, or you can be labeled as a model trader. That said, Robinhood can be used for volatile trading and long-term investments.
What about the interface?
The Robinhood interface is very basic and bare bones. Although I have not had the opportunity to dive into Golden Membership, here is what I will say:
I do NOT recommend using Robinhood to decide when to buy and sell a stock. Instead, compliment the Robinhood App using Market Surveillance AND Carriage to get the information you need before trading.
Buying a stock with Robinhood is very easy.
With the basic membership (which is free), you get up to $ 1,000 you can use Robinhood cash while you are waiting for your money to be transferred from your bank account to buy a stock. In short, you get the stock immediately (with money from Robinhood) up to money transfers from your bank account. This is very interesting, as it is critical to get into the right price points; Especially with the fast-paced trade.
Trading options are also another option within Robinhood.
You will have the ability to enter into contracts. That said, I’m relatively new to the stock market, so all I’m really immersed in is buying and selling stocks.
How Much Money Can You Make With Robinhood?
The next question really can be, how much money can you lose? If you are playing in the stock market and do not know what you are doing, it is very possible that you may lose (and not make money) with this app.
I am not a financial advisor so I can not offer financial advice. What I can say is that I would definitely recommend reading books on how to trade stocks successfully, then practice in a simulation application before actually using real money.
Aside from the fact that you can not do daily trading in Robinhood unless you have over $ 25,000 in your account? If you are looking to buy and sell stocks for the first time without any trading fees, this will probably be an app worth trying.
I give the Robinhood rating 4 out of 5. The application is very basic and makes buying and selling stocks easy. Unfortunately, the app is also so basic that you will want to use Market Watch and Barchart before making any purchasing decisions.
You can earn a lot of money with this app, but you can also lose a lot of money.
At the end of the day, Robinhood can be a great way to make money, but if you are unsure of what you are doing, you may lose money. Would I replace my Roth to fund this claim? Certainly not. But I would use Robinhood to increase my income through wise investment and by referring family and friends to the application for more free shares.