The robinhood app has emerged as one of the most popular and powerful trading and investing tools to come out in recent years. The best part about this tool is the simple fact that it allows you to trade for free. Yes, you read that right. Using the robinhood trading app, you can literally trade stocks for free. Sound too good to be true? We don’t blame you for being skeptical, but the robin hood app really does enable you to trade quickly, easily, and for free.
Of course, every company has to make money. The robin hood app makes money by collecting interest off of funds you deposit but don’t have invested. In this sense, the robinhood company functions somewhat similarly to a bank. So you get a free stock trading app, while the company itself gets to earn some profits off of your money. It’s a win win, if there ever was one.
The app is one of the few services that allows you to trade for free. Sure, many brokers will offer you deals. You sign up, they give you 50 free trades or something like that. These promotions are great, no doubt, but they can’t compare to being able to trade one hundred percent for free one hundred percent of the time. After all, the best price is no price, and you can’t beat free. And with this powerful app, free trading is now a reality.
Besides zero commission stock trading, the app also offers free bank transfers and a variety of other services. At the end of the day, there really isn’t a cheaper option out there than the Robinhood app! This helps explain why the app has become so popular over the past several months.
Want to trade on the go? Luckily, there is a stock trading app for phone that will allow you to use the robinhood trading services. This means you’ll be able to trade, for free, while on the go. For investors, this can be an exceptionally powerful tool. Markets are rapidly evolving, so you need to be able to react as quickly as possible.
This app is a great choice for people who are looking to test out trading and markets. Not only are the trades free, which will help you keep costs low while testing out strategies, but there is no minimum. Want to invest $50 bucks? Most brokers would scoff at this amount. With the Robinhood app, you’re free to invest as little money as you want. So yes, the app is known for being a “no frills” option, but sometimes you don’t need frills, just trades.
Who is using the Robinhood App?
So far the app has proven to be especially popular among millennials and younger investors. This shouldn’t come as a shock. After all, younger people tend to be more tech savvy, and given that Robinhood largely operates as an app rather than a traditional broker, it’s especially good for tech savvy people.
Don’t let us scare you off if you’re not tech savvy, however. The app has been receiving rave reviews for its simple and highly intuitive interface. To be blunt, it’s one of the best designed apps, not just in terms of finance, but in general terms of apps themselves. So even if you’re not a computer savvy individual, you’ll still be able to use it.
The Drawbacks of Robinhood App
Of course, there will be some drawbacks. Compared to many brokers, and especially more expensive brokers, the Robinhood company does not offer nearly as many research tools and other value-added services. This shouldn’t come as a surprise, of course. Providing such services isn’t cheap, and given the company’s business model, it’d be impossible for them to offer extensive value-added services.
If you do use the app, it’s a good idea to invest in some research tools of your own. Not all tools cost money, however, so you can still keep things “free”. Some, such as Google or Yahoo Finance, are free to access. Since you won’t have as many resources through your broker, it will be essential to find these types of tools and learn how to use them. When it comes to trading and investing, knowledge is often the difference between a well executed trade, and a loss. While the Robinhood trading app won’t provide you with a lot of resources, you can find other information sources and use them. Then, you can use the app to conduct trades for free!