Robinhood

Robinhood launched in 2013 as the first commission-free brokerage aimed at mainstream consumers, and its product has evolved significantly since. Today it offers self-directed trading in stocks, ETFs, options, crypto, and U.S. Treasuries, alongside a handful of add-on products like the Robinhood Gold Card, a 401(k) plan, and a retirement account with IRA match. The platform has grown to over 24 million funded accounts as of 2024 and is publicly traded (NASDAQ: HOOD).

For passive investors, Robinhood's appeal is straightforward: fractional shares starting at $1, zero commission on trades, and automatic dividend reinvestment. Robinhood Gold (currently $5/month) adds a 5.25% APY on uninvested cash (rate subject to change) and margin access for active traders. The major caveat for serious investors is the platform's limited research tools compared to Fidelity or Schwab, and its execution quality — while Robinhood does not charge direct commissions, it generates meaningful revenue from payment for order flow (PFOF), which can result in slightly worse fill prices on individual trades.