Robinhood has single-handedly capitalized on the online trading market. As a result, people of all age groups and income have started using Robinhood to enter the trade market. And why shouldn’t they? After all, Robinhood is offering its services with zero commission.
Today, Robinhood boasts about having more than 13 million users with an average age of 31. These numbers make the Robinhood marketing phenomenon. With Robinhood, you get to know some of the best stocks to buy now and profit from the deals.
Robinhood trading platform has contributed significantly to the modern trading industry; it has used the concept of gaming in security trading. In addition, the trading process on Robinhood is so frictionless that some people end up trading more than they would have imagined.
Who Should Use Robinhood?
Robinhood is a self-directed investing platform. There are no intermediaries to conduct business. It is all you. You create an account and start trading in stocks that you are confident about.
Here are the eligibility criteria to use Robinhood:
- You need to be at least 18 to start investing in Robinhood.
- You need to have a valid social security number.
- Legal resident of the USA.
- Permanent resident to the USA or need to have a valid US visa.
I have been on this platform for quite a while now and have made a fortune out of it. However, I don’t recommend new investors to go for Robinhood investing platform.
Where Robinhood Shines?
There are many areas where Robinhood is better than most of the online trading platforms out there. Here are a few of its good points that make Robinhood the best online trading platform.
1. Zero Commission
What’s better than free? This is the exact reason why Robinhood is the first choice for new investors. Robinhood commitment to offering 100% commission-free stocks, ETF, options, and cryptocurrency trading. Yes, other big names are offering free services; Robinhood is just holding the first-mover advantage.
2. Recurring Investment
Robinhood has introduced the concept of fractional shares for the investors who do not have enough to buy a complete share. With the help of the fractional share, you can pay as little as $1 for a portion of the share. Now that’s something most of the investors are interested in.
3. Account Minimum
Robinhood doesn’t have one. Yes, you read it correctly. As long as you have enough capital to invest in your eyeing assets, you can use Robinhood to invest. This feature allows the users to maintain a diverse portfolio, even if they do not have a lot to invest.
4. High Yield Savings
Robinhood also offers a cash management account that offers 0.30%. In addition, the account comes with a debit card with free ATM withdrawals.
5. Streamlines Interface
It is a simple, easy-to-use software application that streamlines all your investment plans. Although it still lacks some of the major features compared to its peers.
Where Does Robinhood Fall Short?
Despite being one of the best platforms in the industry, it does come with its shares of problems and worries.
1. Reliability & Trustworthiness
There have been far too many cases where people have lost their trust in Robinhood. Some experts even state that when the market becomes volatile and increases the chances of loss, the Robinhood platform goes out of service, sometimes even for more than 10 hours.
2. Customer Support
Most brokerage customers expect to have a phone call support system if anything goes wrong. Unfortunately, this feature is limited in Robinhood as you can get only email support.
This problem has restricted the number of new users joining the platform. Hence, the company is working on rolling out the phone call support system.
Is Robinhood Right For You?
If you are knowledgeable about the trading market and are looking for a streamlined trading platform, Robinhood is what you need. However, if you are thinking of Robinhood as a trading coach where you will be able to learn the right practices of trading, you are certainly in for a surprise. Robinhood trading platform is a commission-free platform; hence, expecting it to educate you in the art of trading is just over too much of expectations.
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