Robinhood Review 2022 : Pros, Cons and Comparision

robinhood review
Min Deposit

$5

Min Spread

0.0

Regulation

FINRA

Financial markets are enduring when done right, but this requires practice, patience, and a good broker. Investors look for brokers that serve most of the needs for the trade as the markets are volatile. The article focuses on the Robinhood brokers that work to trade. Here, the different aspects of the broker will be discussed and what they have to offer for potential trading. 

Robinhood broker has the value to serve their clients with the best, and they believe in uploading their values on a daily basis. Thus, making traders attract and ensure belief in the broker. It came into the trading business in 2014, and the most amazing thing about the broker in the market is that it had a waitlist of 5,00,00 before its arrival as it was the first broker with zero trade commission. 

The broker is regulated and reliable with all the necessary precautions for the security of the investors. Easily tradable systems and learnable tools with a human touch make it a perfect choice. So, let’s get to know Robinhood Review in detail and make a well-researched investment. 

Robinhood Review: Pros and Cons

Robinhood, the name suggests, is a strongly built trading platform with surreal services making strong investors. The broker has basic and advanced tools that make the trade smooth and help traders experience a perfect trade journey. We have the pros and cons of the broker to give a small overview of the broker. Certainly, traders will find these useful: 

Pros:

  • Free US stock and ETF trading 
  • Web trading platform 
  • Mobile trading 
  • Digital account opening 
  • Regulated 
  • No inactivity fees 
  • Low trading fees 
  • Fast deposit and withdrawal
  • Instant access 

Cons:

  • Weak customer support 
  • Few education materials 
  • Limited trading products

Robinhood Review: Scam and Regulations

Robinhood broker is operating under the name of Robinhood markets with subsidiaries of Robinhood financial, Robinhood securities, and Robinhood crypto. The broker is regulated by the Financial Industry Regulatory Authority (FINRA). In addition, the broker has newsletter services, and the official website gives an introduction to the founders and company working. 

Thus, the broker is trustworthy and is a legitimate broker and not a scam. 

Robinhood Review: Trading Account Types

Robinhood broker offers its clients three types of trading account that support the traders to have an effortless trading experience. The accounts are designed as per the requirements of the traders and help them achieve their goals. Let’s get into the details of the accounts for investing with the one that suits traders need: 

Robinhood Instant 

Robinhood instant is the default account that automatically signs up when traders start trading with the broker. The account is designed for beginners of the trading market with several facilities to aid them in progressive and potential investing. Below are the services listed of the broker that could be accessed with the instant account: 

  • Instant deposit of $1000 
  • Extended hours of trading 
  • Trading unsettled funds 
  • Options trading 
  • Also referred margin account 
  • Easy access to funds 
  • Limited trading in some areas 
  • Free trading account 
  • Easy process of funds 
  • Zero monthly fees 
  • No extra charges 

Thus, a good account option for beginners to invest in the trade and learn trading with this basic account of Robinhood. 

Robinhood Gold

The Robinhood gold account is the premium trading account which is similar to the instant account but with more trading power. Hence, traders can enjoy more access to the market and buy with margin investing and greater instant deposits. An advanced version of the instant account with facilities such as: 

  • Higher-level research 
  • More daily trades 
  • Margin accounts for a small fee 
  • Gives funds before settled 
  • Options trading
  • Margin investing 
  • Level II data 
  • Gold membership worth $5 per month 
  • Free trial for 30 days 

The gold account of Robinhood, moreover, has three-day trades in five trading days. It has no recurring fees, no trade commission, interest charges are nil, and no account minimums. 

Robinhood Cash

The Robinhood cash is the downgraded account of the broker below the instant and the gold account. The traders have the freedom of moving to the cash account anytime they want. The account has limited access as traders cannot have the instant deposits or settlements as the other accounts. It gives no premium features for trade, thus leveling down the trade. 

The features of the cash account are: 

  • Access to the deposit of $1000
  • No instant deposit facility 
  • No trading with unsettled funds with securities sold 
  • Could charge some interest
  • No commission 
  • No trading fees or extra charges 

Robinhood Review: Account Opening

The account opening procedure of Robinhood broker is unique but simple as well. Traders can, within a few steps, have access to the trading account and begin trading. Below mentioned are the steps of easy trading with a Robinhood account: 

  • The initial step of trading with Robinhood is to visit the website of the broker. Where traders can submit their application for opening a trading account. Moreover, traders can even do this through the Robinhood application, which is downloadable on smartphones and other devices. 
  • The next step is waiting, as the broker verifies the application to check on the details of the trader. Once it is approved, the trader will receive an email with confirmation and asking for some information for further processing. 
  • There may be requests for documents for identity verification with the steps given for the same. Traders can then wait for the opening of the account and then make changes to the trading account as per their requirements. 
  • Traders can switch from an instant account to a gold or a cash account, whichever fulfills their needs. 

The broker requests the clients to submit some personal information, including the tax identification or financial things, for the process. They comply with the USA rules and the FINRA rules for its operation and therefore work accordingly. Thus, the account opening, therefore, takes time but is worth the wait. 

Robinhood Review: Trading Platform

Robinhood is famous for the mobile and web trading it offers online for clients. The trading platforms of the broker are the best for trading, with easy trading on mobiles and devices that make it feasible to trade anywhere in the world and at any time. Hence, trading with Robinhood is smooth and within clicks. 

Mobile Application 

The mobile application is easy to download and install the application. It could be used for market watching and trading. A trader can invest through mobiles, make changes, find opportunities, and what not. A highly recommended trading platform for the traders of Robinhood. The download is easy on Android phones, and for iOS users, Robinhood has given details on its website. 

For the installation of the widgets on an iOS 14, traders can follow the steps and get the customisable widgets. Here are the steps to get it: 

  • Downloading application from the Robinhood app. 
  • Hold it anywhere on the screen and edit it as required. 
  • Next, traders have to select the + symbol on the top left and get the search bar to get widgets. 
  • Traders can scroll and decide the widget to use. The current widget offered is a portfolio widget for displaying the value. 
  • This way, traders can use them and know the market. 

This way, traders can have the application in hand to use and monitor the market and trade. 

Web Trading Platform

The web trading platform is the browsing platform that connects the trader with the market online. It is easy to use with no headache or anything extra to download. Traders can simply use it through the trading accounts and search, find markets to invest and other services within clicks. 

Robinhood Review: Trading Instruments

Robinhood broker has limited products to invest the funds; here are these listed for the readers: 

  • Stocks and funds 
  • Options 
  • Gold 
  • Cash management 
  • Cryptocurrency

There are around 5000 stocks to invest with the equities and ETFs; other than this; there are mutual funds, bonds, royalty trusts, limited partnerships, close-ended funds, Spanish ADRs, etc. 

Robinhood Broker: Commission and Spreads

The broker is a commission-free trading place that attracts most of the traders. However, if traders check the website properly, traders will find that they may have certain charges as commission-free trading has some limitations. The commission-free trading is available for self-directed individuals with cash or margin accounts that trade in the US-listed or certain OTC securities online. 

Traders may have to pay other charges such as trading charges, gold subscription fees, financial fee schedules, or paper fee statements. 

The spreads are available on the options trading of the Robinhood broker. Traders have spread as per their trading instruments as it is the difference between the bid and the asking price of the security traded.

Robinhood Review: Leverage

The leverage is the loan that the broker offers to their clients for trading high in the market. With Robinhood, investors can enjoy the leverage of 50% on their market holdings using the trading accounts. Thus, traders will have to pay a downpayment of 50% to open a high market position. 

Hence, the risk with leverage is high and should be used accurately for a confident and profitable trade. 

Robinhood Review: Deposit and Withdrawal

The deposit of funds with Robinhood is easiest as there are instant deposits available with the broker. A trader can deposit with bank transfers, credit or debit cards, and wire transfers. The deposit with Robinhood is advanced as there are instant and automatic deposit options. 

A trader can set the quarterly, monthly, weekly process for the transfer and get the deposits directly from the bank accounts. Moreover, traders have the option to cancel their deposits anytime they want.

The withdrawal of funds with the broker is accessible with iOS, Android, and Web services. The traders are allowed to make 5 withdrawals per business day in the account. Moreover, it has a withdrawal limit of $50,000 per business day with the broker. 

The broker has listed all the points on the website related to withdrawal and deposit for the understanding of the traders. So, traders can get into the details and accordingly use it. 

Robinhood Review: Education and Research Support 

Robinhood broker has all the facilities for educating the clients; they have learned options for traders to enhance their knowledge and make trading more comfortable. They can have the following for increasing their knowledge base: 

  • Library 
  • Snacks 
  • Investing basics 

The three have study material that would increase knowledge of traders and make them successful investors of the financial markets. The snacks option has daily news and updates for the traders, and the library has articles in English for readers and inquisitive trading souls. 

Research is the need of the trading, and traders can use the web and mobile services of the broker for searching the market, getting knowledge, and making decisions. 

Robinhood Review: Customer Support

Customer support is the necessity of traders as they can get their queries solved with the professionals of the broker. The broker has live phone support services to get connected with them 24 hours a day. Traders can request a call from the team and get their problems solved. 

Moreover, there is a support center that has frequently asked questions for answering the questions of traders. The customer support of Robinhood is not that strong as it does not have many services. 

Robinhood Review: Final Verdict

The Robinhood broker is a great brokerage service provider online with services that boost the trader of the inventors. It has trading accounts, zero commission, low transaction fees, mobile application, web, regulation, educational material, etc., that make it reliable and trustworthy.

However, the broker has certain issues of no MetaTrader4 or 5; customer support is weak, and fewer trade instruments. These are the drawbacks that traders may face with the broker; otherwise, it is a good choice to invest in the market. 

You can trade in other cryptocurrencies through highly reputed brokers like ABinvesting. The brokerage firm is known for providing the best trading environment for crypto traders and traders of other instruments as well.

FAQ

The broker offers limited trading instruments, but that is highly preferred by the investors of the market. These are listed below: 

  • Stocks and funds 
  • Options 
  • Gold 
  • Cash management 
  • Cryptocurrency

Robinhood customer support is not that great as they only have the frequently asked question section along with the phone support to provide. Investors can send their queries with a number, and the team contacts them, which is quite dissatisfactory.

Get a Callback

A trusted broker will contact you today.

Trading View

Top Brokers

Get a Callback

A trusted broker will contact you today.