Robinhood

Robinhood

4.3

(12 Reviews)

Stocks

Robinhood

Robinhood

4.3

Stocks

Investing for Everyone. Make unlimited commission-free trades in stocks, funds, options, and cryptocurrencies with Robinhood.

Join investors

Highlights

Auto Track Available

+5.72%

Asset Class Return30d

#19 Rank

In Stocks30d

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Invest from

$1

Sign up to get a free stock valued up to $225!

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Overview

Robinhood is on a mission to democratize finance for all. At Robinhood, they believe the financial system should be built to work for everyone. That’s why they created products that let you start investing at your own pace, on your own terms. Commission-free investing, plus the tools you need to put your money in motion. Robinhood offers a cash account in which you can receive 0.30% APY as well as commission free trading on stocks, funds, options, and crypto.

Things to Know

  • You make money on

    Value + Dividends

  • Fees

    0%

  • Min Investment

    $1

  • Payout frequency

    Quarterly

  • Term of investment

    Zero

  • Target Return

    Varied

  • Liquidity

    Easy

  • Open to

    All Investors

  • Mobile Application

    iOS, Android

Top Perks

  • Trade Stocks, Fractional Stocks, ETFs, Options, Crypto

  • The pioneer of commission-free investing

  • Set up customized news and notifications to stay on top of your assets

How you make money

As with other trading platforms, you earn a return from stock price appreciation and dividends. Robinhood makes it easy to trade Stocks, Fractional Shares, Options, Crypto and ETFs. Robinhood allows you to trade on margin as well. Robinhood also offers a cash management account. Earn 0.30% APY on your cash account and have easy access to your uninvested money with their cash management debit card.

How Robinhood makes money

Robinhood offers commission free trading and no management fee.  They make money in several different ways:

  1. Paid Subscription: Robinhood offers their Gold membership for $5 per month
  2. Rebates from market makers and trading venues: Market makers (typically big institutions/funds) buy directly through the brokers to have discounted purchases. For that ability, the market makers pay a rebate to the brokerage to receive their orders . The brokerage sends your orders to the market maker that is most likely to execute at the best price for you and makes a few cents on each trade.
  3. Income generated from cash: They borrow the cash sitting in your account and invest it into interest earning accounts and keep the profit.
  4. Margin Lending: They collect interest on money they lend to investors.
  5. Cash Account: Interchange fees from purchases made with the Cash Management debit card, and fees from program banks.

Is it safe?

Robinhood has seen massive growth over the years and now has an estimated 20 billion dollars under management with over 13 million users. Robinhood has been in operation since 2013 and has over 1200 employees. Robinhood Financial LLC is a member of SIPC, which protects customer accounts up to $500,000 (including $250,000 for claims for cash).

  • Established

    2013

  • Country Available

    US Only

  • Assets Managed

    $50B

How You’re Taxed

Capital Gains

Capital Gains

Income Tax

Income Tax

Investors are subject to short-term capital gains when selling stocks owned for one year or less, which are taxed at ordinary income tax rates. Long-term capital gains are applicable when assets are owned for more than one year, with tax rates ranging from 0% to 20%, depending on your total taxable income.
 

Reviews

4.3
  • 5

    8

  • 4

    2

  • 3

    1

  • 2

    0

  • 1

    1

Reviews (12)
G

Geraldo Melendrez

Great for beginners

R

Ric

Love Robinhood. I'm a pretty knowledgeable investor in public equities (though not a technical trader) so for me, having an easy to use trading platform without the fees is exactly what I'm after. They news highlights and overall functionality is perfect. Whether your new to investing or experienced - Robinhood is fantastic

N

N8 Dizzle

Free stock no scam

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