Upon initial interaction with the Robinhood website, it seems very simple, straight, and to the point. Thanks to being completely free to all users, there is not a lot of information one may require before starting out.
In effect, Robinhood is a free trading app, with no account fees, commissions, or account minimum. A user pays only for the actual trading, and there’s a $75 transfer out fee, which is lower than many top brokers’ fees. A user can avoid a transfer fee by selling all their assets and transferring the funds to their bank account, instead of transferring the account to another broker.
Much like their website – their trading platform is simple and to-the-point. It gets the job done, even with the mobile app as their main focus of interaction. The app is also simple, but streamlines the entire process of verification and enables users to deposit up to $1,000 nearly instantly.
The downsides are that Robinhood only support an individual taxable account. They don’t offer access to any Mutual funds or bonds. Another downside is the lack of phone support. They do communicate with users via email which is easy to find on the website and in the app, but there is no way of reaching them via telephone, which means one has to wait for a return email every time there’s an issue.
Furthermore, Robinhood does not offer any type of training or educational resources. No additional services which a user could find with other brokers.
This app is great for traders who are heavy mobile users – or prefer trading on their mobiles, frequent traders who can benefit more from the commission-free trading.