Learn More About Robinhood
Robinhood aims to democratise financial services for everyone, so what is it all about and how can investors benefit? Read on to learn more about this revolutionary approach to money management.
Learn More About Robinhood
Robinhood aims to democratise financial services for everyone, so what is it all about and how can investors benefit? Read on to learn more about this revolutionary approach to money management.
What is Robinhood?
We all remember the childhood story of Robin Hood, who took from the rich to give to the poor because he believed unlimited taxation was unfair. The tale inspired the modern-day Robinhood, which is an investment services company based in California.
It was co-founded by two trading software developers and Stanford graduates, Baiju Bhatt and Vlad Tenet, who committed to lower-cost trading for investors.
The company has approximately 10 million users, according to some sources. Robinhood offers investment accounts for trading on Stocks and Bonds, Options, Gold and Crypto.
In addition, there is a cash management program available to manage bill payments and investments on the same app.
Crypto
Robin hood’s cryptocurrency trading account is popular with younger investors.
Trade Bitcoin
Account holders can trade bitcoin, dogecoin and other crypto-currencies with Robinhood.
What is Robinhood?
We all remember the childhood story of Robin Hood, who took from the rich to give to the poor because he believed unlimited taxation was unfair. The tale inspired the modern-day Robinhood, which is an investment services company based in California.
It was co-founded by two trading software developers and Stanford graduates, Baiju Bhatt and Vlad Tenet, who committed to lower-cost trading for investors.
The company has approximately 10 million users, according to some sources. Robinhood offers investment accounts for trading on Stocks and Bonds, Options, Gold and Crypto.
In addition, there is a cash management program available to manage bill payments and investments on the same app.
Crypto
Robin hood’s cryptocurrency trading account is popular with younger investors.
Trade Bitcoin
Account holders can trade bitcoin, dogecoin and other crypto-currencies with Robinhood.
How Do I Use Robinhood?
Similar to other hybrid investment firms like SoFi, users can open an account on RobinHood.com and connect their bank account. From there, they start building their portfolio to trade on instruments like Apple stocks, Gold and cryptos.
There is a library of articles on topics like ‘I’m in my 20’s, how should I start investing?’ These are direct, easy-to-understand blogs about how to start investing.
Good for novice traders
Robinhood has plenty of educational resources for beginners, in addition to free trades to get started.
Cash management
The cross-over platform also provides cash management in line with your expenses and investments.
Transparency
The company discloses all of the account fees.
How Do I Use Robinhood?
Similar to other hybrid investment firms like SoFi, users can open an account on RobinHood.com and connect their bank account. From there, they start building their portfolio to trade on instruments like Apple stocks, Gold and cryptos.
There is a library of articles on topics like ‘I’m in my 20’s, how should I start investing?’ These are direct, easy-to-understand blogs about how to start investing.
Good for novice traders
Robinhood has plenty of educational resources for beginners, in addition to free trades to get started.
Cash management
The cross-over platform also provides cash management in line with your expenses and investments.
Transparency
The company discloses all of the account fees.
Benefits of Robinhood
The company’s main benefit may be its commission-free trades, as it never charges commissions on trading transactions. However, this doesn’t mean the service is free as there are other charges related to holding an account and regulatory trading fees.
Gold accounts are charged $5 per month and 2.5 percent on margins over $1000, for example.
Robin hood says it primarily makes money from rebates from market makers, Robinhood Gold, stock loan, income from cash and its Cash Management brokerage feature.
Benefits of Robinhood
The company’s main benefit may be its commission-free trades, as it never charges commissions on trading transactions. However, this doesn’t mean the service is free as there are other charges related to holding an account and regulatory trading fees.
Gold accounts are charged $5 per month and 2.5 percent on margins over $1000, for example.
Robin hood says it primarily makes money from rebates from market makers, Robinhood Gold, stock loan, income from cash and its Cash Management brokerage feature.
Disadvantages of Robinhood
Disappointing customer service
Robinhood’s customer service could be improved, according to online opinions. The company says it is growing the customer service.
No bonds or retirement accounts
While Robinhood is strong on Stocks, Funds, Gold and Cryptos, it doesn’t offer Bonds or retirement accounts.
No trade limitations
The no-limit policy on trades may be risky for inexperienced investors.
Disadvantages of Robinhood
Disappointing customer service
Robinhood’s customer service could be improved, according to online opinions. The company says it is growing the customer service.
No bonds or retirement accounts
While Robinhood is strong on Stocks, Funds, Gold and Cryptos, it doesn’t offer Bonds or retirement accounts.
No trade limitations
The no-limit policy on trades may be risky for inexperienced investors.
What Assets Can I Trade on Robinhood?
The company focuses on five asset classes: Stocks and Funds, Gold, Crypto and Options. Robinhood says it will cover 100% of direct losses due to any unauthorised activity in trading accounts.
There is more protection in the form of an SIPC fund with coverage of up to $500,000 and a Lloyds of London brokerage customer insurance of up to $10 million per customer.
At BTCtopic we constantly look for new trends and products to keep you informed about the latest developments in the investment markets.
If you enjoyed this article, read more on BTC wallet.
What Assets Can I Trade on Robinhood?
The company focuses on five asset classes: Stocks and Funds, Gold, Crypto and Options. Robinhood says it will cover 100% of direct losses due to any unauthorised activity in trading accounts.
There is more protection in the form of an SIPC fund with coverage of up to $500,000 and a Lloyds of London brokerage customer insurance of up to $10 million per customer.
At BTCtopic we constantly look for new trends and products to keep you informed about the latest developments in the investment markets.
If you enjoyed this article, read more on BTC wallet.