If you are searching for an easy-to-use platform with basic functionality for your first steps in trading, Robinhood is one of the best options. Despite recent scandals associated with its name, it is certainly worth viewing. Read on to learn what it offers to its users and find out whether it is secure enough.
As of now, this platform is associated with the GameStop scandal mainly, when they decided to freeze all the deals with the stocks of this company amidst the dramatic rise at the beginning of 2021. Since that time, there have been serious doubts about whether this exchange service is worth trusting.
So, what is Robinhood? In short, it is a fast-developing online broker, which offers commission-free trading services.
The key advantages:
- Regulation by the SEC and FINRA.
- One can trade stocks, ETFs, options, and cryptocurrency without any commissions.
- 7 cryptocurrencies available.
- Easy and free registration.
- No minimum deposit limits.
- Free stock for new accounts ― up to $225.
- No deposit or withdrawal fees.
- A user-friendly mobile app.
- Robinhood Gold accounts provide a bunch of extra bonuses for only $5.
- No ACH transfer fees.
- No inactivity penalties.
Yet, do not haste to register on this platform, until you check all the rules in detail. In the first place, you must know that its product range is rather limited compared to other similar platforms. Also, the majority of additional research and trading tools are available to Gold accounts only. Another crucial disadvantage is that there are no demo accounts, so if you want to test its functionality, you will have to invest real money right away.
In general, it is a good choice for beginners interested in commission-free trades. However, professionals may get disappointed due to its poor functionality, a small selection of assets, and other limitations. As for its reliability, there is much positive feedback from users concerning safety aspects. And there is a good chance that, in the future, the company will manage to clear its reputation.