Searching for a reliable broker in the USA? Then you are in the right place. Robinhood is a US based brokerage firm providing different kinds of customer services. In this Robinhood review, we’re going to cover up all the services of Robinhood along with its reliability and compatibility.
What is Robinhood?
Robinhood is a US based discount broker, established 7 years back. The company is regulated by top tier US financial institutes like FINRA and SEC. It provides services in a cost effective manner, making it affordable for people of any age and group. Robinhood has also introduced a cash management program which helps customers to earn on un-invested funds.
It is a great platform for new traders as it has an easy to understand user interface. It also provides basics of investments in the stock market, to make users think about the long term financial goals.
Account Opening :
Account opening is digital and straightforward. Robinhood permits account opening for US residents only. It takes a day to verify your account. However, it is planning to extend its service in Europe and other continents as well.
Minimum Deposit : There is no minimum deposit for Robinhood instant account. But if you want to switch to a gold account then you have to deposit a min of $2000.
How to open Robinhood account :
- are 18 or older
- have a valid social security number
- have a legal US residential address
- are a US citizen, US permanent resident, or have a valid US visa
- Fill in your personal information (i.e. address, date of birth and social security number)
- Answer short questions relating to your trading experience
- Verify your identity with your driver’s license / identity card / passport. A photo of the documents taken with your mobile will do.
Robinhood charges zero fees to trade in stocks, ETFs, options, and cryptos.
Deposit and withdrawal :
Deposits are free of cost. You can deposit only through bank transfer. For instant account deposition limit is $1000. For those who hold gold account the limit is extended to $50,000. Robinhood doesn’t charge anything for ACH withdrawal. However, it charges $25 for domestic and $50 for international wire transfer. Withdrawal usually takes upto 3 days.
Stock transfer : You can transfer stock in your account for free, while sending stock from your account costs you $75 per transaction.
Robinhood Trading Platform :
Robinhood has 2 types of trading platforms : Web and mobile trading. Web trading platform is launched after mobile application. It has safe, well designed and user friendly trading platforms. Robinhood does not have a desktop trading platform. Nor do it support third party trading platforms, hence you have to choose between these two platforms only.
Robinhood Products Offered :
It’s product portfolio is limited. It only offers stocks, options, EFTs, and cryptos. Gives access to around 5000 stocks and ETFs. It offers 7 types of cryptos and cryptos are available in 47 cities.
Only text format educational material is provided. No live videos, tutorial and seminars. They don’t even provide a demo account for practise. All you can do is read the articles to gain some knowledge.
Robinhood provides good quality research tools. Charts are easy to interpret. Real time data in the news feed. Experts provide ideas about market trends so that traders may get some clue about the investment. Provide fundamental data related to the company.
|Free US stock and ETF trading||Weak customer support|
|Great mobile and web trading platforms||Few educational materials|
|Transparent fee structure||No IRA account offered|
|Cash management service||Depositing large amount at Robinhood gold takes longer time|
|Data on asset fundamentals||No demo account provided|
Customer Service :
24/7 service is not available. You can contact them only via email. You can write a short description about the issues you are facing. They’ll revert as soon as possible with an appropriate answer.
Bottom line :
The biggest positive point Robinhood has is that charges no withdrawal or inactivity fees. The account opening is easy and fast.
It also has some drawbacks that products are limited to US only. Customer support is weak and limited educational material.
But if you want to trade US stock for free, then Robinhood is the right platform for you.