About two weeks ago, I downloaded a fairly new business app called Robinhood and thought I’d share my initial review with you today.
I’ve wanted to trade stocks for a long time, but the fees that come with trading or going to a broker always get in my way. If you are like me and do not have a lot of money to negotiate, these fees can affect your earnings. Robinhood prompted me to sign up for the fact that the app is free, but also because a promotion allowed me to get free stock when signing up.
Is Robinhood worth downloading?
It’s been a long time since I got excited about making money online. The internet has become too saturated in almost all markets and many companies are looking to trick you into making a quick profit, while you get nothing. Robinhood is not that company.
By registering for the app, you attach Robinhood directly to your bank account. I ended up getting a free share on Fit Bit and eventually ended up selling those shares. Robinhood notes that there is a 1 in 1000 chance that you will get a stock with a big name like Apple. From the first shares I got along with the 4 I now obtained by referrals, the best shares I received were valued at $ 10. Nothing big, but free money is free money. You need to hold the shares for 3 trading days before you can trade or sell your shares.
How does Robinhood earn his money?
Like a bank, Robinhood makes money (and can give out shares for free) because they charge interest on the money that you put into your account. As long as your clients’ acquisition costs are below your interest earnings, Robinhood will be a profitable business. Seeing that some users have more than $ 100,000 in their account, you can easily see why Robinhood can offer free trades.
That doesn’t mean it’s perfect.
Intraday trading is something you cannot do unless you have more than $ 25,000 in your account. I think you can get up to 3-4 day trades in a 5 business day period, or you could be tagged as a pattern trader. That being said, Robinhood can be used for long-term investment and business operations.
What about the interface?
The Robinhood interface is very basic and basic. Although I have not had a chance to dive into the Gold Membership, this is what I will say:
I do NOT recommend using Robinhood to decide when to buy and sell stocks. Instead, complement the Robinhood app using Market Clock and Bar graphic to get the information you need before trading.
Buying shares with Robinhood is very easy.
With the basic membership (which is free), you get up to $ 1,000 that you can use from Robinhood’s money, while you wait for your money to be transferred from your bank account to buy shares. In short, you get the shares immediately (with money from Robinhood) until the money is transferred from your bank account. This is very good, since it is essential to get the correct price; Especially with swing trading.
Trading options are also another possibility within Robinhood.
You will have the ability to configure contracts. That said, I am relatively new to the stock market, so all I have really done is buy and sell stocks.
How much money can you make with Robinhood?
The other question could really be, how much money can you lose? If you are playing on the stock market and you do not know what you are doing, it is very possible that you will end up losing (and not winning money) with this application.
I am not a financial advisor, so I cannot offer financial advice. What I can say is that I would definitely recommend reading books on how to successfully trade stocks and then practicing on a simulation app. before using real money.
General rating:
Other than the fact that you cannot trade intraday on Robinhood, unless you have more than $ 25,000 in your account? If you are looking to buy and sell stocks for the first time without trading fees, this app is probably worth a try.
I give Robinhood a rating of 4 out of 5. The app is very basic and makes it easy to buy and sell shares. Unfortunately, the app is also so basic that you’ll want to use Market Watch and Barchart before making any purchasing decisions.
You could make a lot of money with this app, but you could also lose a lot of money.
At the end of the day, Robinhood can be a great way to make money, but if you’re not sure what you’re doing, you could lose money too. Would you replace my Roth to fund this application? Of course, no. But I would use Robinhood to supplement my income through smart investments and by referring family and friends to the app for more free shares.