ROBINHOOD REVIEW πŸ“ˆ 100% Free Stock Trading, Worth It?

ROBINHOOD REVIEW πŸ“ˆ 100% Free Stock Trading, Worth It?

– How’s it going today, guys? I hope you’re having a fantastic day. So in this video here
we’re going to be doing an in-depth review of the Robinhood app, and if you guys are
curious about different investing platforms out there and you’re doing your research, I’ve linked up down in
the description below all the different review videos I have done so far on this channel. So I do encourage you to shop around, look at the different options out there, and really consider the
features and benefits of each investing platform
and then figuring out which one really best suits your needs. Now Robinhood captures a lot of attention because it is completely free. $0 commission, $0 minimum account balance, so you could literally open up an account, fund it with $10 and
start investing in stocks. So there’s a lot of appeal to this but what I really want to
make sure you guys understand is that it is a very limited platform and that’s kind of what
we’re gonna get into here is the pros and the cons of this platform, why I like this platform, and also why I’m not such a fan of this platform at the same time. Now like I do with all of my reviews, I do have a pinned comment down below with a timestamp for
the different sections so if you guys are looking
to skip ahead in this review, that is a pinned comment down below where you can jump ahead
to a separate section. First of all let’s talk about
what Robinhood actually is. Robinhood is a free trading app out there that has really ballooned in popularity. It allows you to invest in stocks, ETFs, as well as cryptocurrencies and options. Now the cryptocurrency
piece is still limited to certain states in the United States, so if you are looking to invest in cryptocurrency through Robinhood, you’re going to want to make sure it is currently available in your state. Beyond that, Robinhood is a
very basic investment platform. It is a 100% online platform, meaning there are no physical
storefront locations. So I’m sure you guys have
seen the Charles Schwab or Fidelity locations around where you can go to a branch office or you can call someone up on the phone. With Robinhood it is completely
electronic and online and so this right here might
be a con for some people, the fact that you can’t
call someone up on the phone or you can’t stop into a branch
location to talk to someone but really, the difference
here is the fact that you’re not paying anything. With the traditional
online discount brokers you’re paying a fee for commission and they have a minimum account balance that is more or less
what Robinhood eliminated but by eliminating that fee structure they are not able to offer
the personal attention that you might get through
your other brokerage account where you can call someone on the phone or stop into a branch location. So what can you invest in
using the Robinhood app? First of all you can invest
in publicly traded stocks or ETFs on the New York
Stock Exchange or the Nasdaq so right off the bat that tells you that you cannot invest in penny stocks, you can’t invest in foreign stocks unless they trade through
ADRs, and you can’t invest in stocks on the
over-the-counter exchanges. You can also invest in cryptocurrency through the Robinhood app if
it’s available in your state and currently this includes
Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Ethereum
Classic, and Litecoin. Robinhood also now allows you to buy and sell options free of charge. So what this means is that there are no mutual funds available on Robinhood and there are no penny stocks
or over-the-counter stocks. Moving on now, what
are the fees associated with a Robinhood account, and
what are the requirements? Well the only requirements
is that you do have to be a US investor, 18
and up, but beyond that, there are no fees
associated with Robinhood. It is completely free, no
minimum account balance, and no commission cost for trading. You might be asking yourself, well how does Robinhood make money? What they do is they offer a
feature called Robinhood Gold, where you are offered margin,
you can buy stocks on margin, and you can also have after
hours or extended hours trading and you also have the availability to have instant settlement with your funds rather than waiting for funds settlement when you are selling your position. Typically you would have to
wait for those funds to settle to withdraw them or to reinvest them but Robinhood can offer
that instant settlement with their Gold Package. So that is how Robinhood
is actually making money. Okay, so what are the
pros of this platform? There are pretty much
two of them that I see. First of all it’s 100% free, which really lowers the barriers to entry to get started with investing. Traditionally if you wanted
to open an investing account, it might be a $500 or
$1000 minimum balance but with Robinhood, it is $0, you can get started with
pretty much nothing. The second pro for them is the fact that it has a very simple interface pretty much anybody can
jump on there, get started, and understand what it is they are doing but that in and of itself is also a con because the platform is extremely basic. And for any investor out there that’s really doing a lot of research you’re gonna be extremely
limited by this platform. So that right there is the
first con I see for Robinhood. That platform is extremely basic and I have used Robinhood before. I still have some
investments with Robinhood but what I would find is I was doing all of my investment research
on other platforms or other websites and I
was only using Robinhood to buy and sell my shares and I really, would rather have the ability
to do that all in one place where I’m on an app that
allows me to do research and learn about investments and then do my transactions as well. Another con for some is the fact that Robinhood does not offer mutual funds so if you are looking to
invest in mutual funds you are not going to be able
to do that through Robinhood. Now a big con is the fact that they do not offer retirement accounts and this right here is a
huge problem in my opinion because you cannot open any
type of retirement accounts. You can’t do the self-directed Roth IRA or a traditional IRA through Robinhood and I think a lot of
people don’t understand the difference here between investing through a retirement account
where you can be tax sheltered or investing through a
traditional brokerage account where you’re paying taxes and you’re paying at the
maximum rate in some cases. So really educate yourself on investing through retirement accounts if
you are a long-term investor especially as a young person and understand the advantage of investing and being able to do so
through a retirement account. Another con is that Robinhood
does not offer a DRIP or dividend reinvestment plan. A lot of other brokerage
accounts out there allow you to reinvest your dividends automatically and Robinhood does not do this. Another con is also the fact that you can only purchase
whole shares of stock on Amazon, so there are no fractional
or partial shares available. And one platform that does
offer both of these things, they offer a DRIP and they
also offer fractional shares is M1 Finance, this is also
a completely free platform and I’m gonna link up the
review to this as well. If you guys are on the
fence between Robinhood and maybe something else, I would highly recommend
taking a look at M1 Finance because in my opinion that
is a superior platform and M1 Finance is my favorite
investing platform out there for beginners who are not looking to pay for commissions
when they are trading. So that review is linked up
down in the description below. Another con is that there
are no pre-built portfolios with Robinhood, so you
can’t really go on there and start investing in a portfolio that was built by somebody else. They’re putting all of
that power in your hands to decide what you’re
going to be investing in and you also really
can’t build a portfolio or automate that process at all. You can’t automate
deposits into your account, you can’t automate investments. Really, it’s as basic as it gets here with this Robinhood platform, and that is the advantages that some of these other platforms offer out there, it’s the fact that you can
automate your contributions or automate your investments, or automatically reinvest those dividends that are paid out by the
stocks you’re investing in. And then the fourth con is that Robinhood only offers
the very basic order types. If you are somebody who’s looking for the more complex order types, you’re gonna wanna look somewhere else but for the most part these order types are all you would need as a beginner. So moving on who is Robinhood
for and who is it not for? Robinhood is a good platform for beginners who are looking for a very
basic investment platform but like I said, I would
recommend doing your due diligence looking around at a couple
of different platforms, particularly M1 finance. Who is Robinhood not for? It is really not good for the
research-oriented investor. If you’re looking for candlestick charts, if you’re looking for more
information about companies, if you’re looking to do
fundamental analysis, you really can’t do any of that
here with the Robinhood app. You’re going to have to do
that on different platforms and you’re probably
going to be disappointed with that very basic platform. But understand that is what
Robinhood was built for, it was meant to be the most basic and simple investing platform out there. So I’m really not saying
it’s a bad platform, it was just built to be
very basic for beginners and if you’re a little bit more advanced as far as investing goes, then you’re probably not going
to be happy with Robinhood. But anyways guys, that’s
gonna wrap up this video, that is my opinion of Robinhood app. Let me know what you think down in the comment section below. But thank you so much
for watching this video and I will see you in the next one. If you are interested in learning more about investing in the stock market, I’ve created a free course just for you. The link is in the description below. Here are a few other videos
you might enjoy as well. (groovy music)

100 thoughts on “ROBINHOOD REVIEW πŸ“ˆ 100% Free Stock Trading, Worth It?

  1. Thank you. Very informative. Heard a lot of hype surrounding this app and I've been debating on whether or not to use Robinhood. Definitely off-put that they do not offer any IRA's, although I will still try it out.

  2. I don't know why but you've suggested that you cannot buy penny stocks on Robin hood this is not true..

  3. Hi ryan, is etoro good, i'm from indonesia. It hard yo find american broker that accept indonesian. Any suggestion?

  4. I believe ROBINHOOD is an UNSECURE PLATFORM based on nearly 2 years experience.
    1. Starts mixing up the screen colors reds with green background and graphs (not the usual)
    2. Percentage mistakes in favor of RH, especially when holding positions in multiple stocks.
    3. My portfolio graph a year ago had a 1,800.00 spike for a few days when I wasn't trading at all for some time, didn't own any stock, and had less than 40.00 dollars in the account. This incident is still reflected on my portfolio graph.
    4. RH will not execute sale or buy orders when in my favor, literally like playing against a defensive algorythmn.
    5. I've saved many screen shots to show all this, there are also no corresponding deposits to match graph anomalys.

  5. Well put !

  6. πŸ˜ͺI wanna invest but I wanna get rich

  7. Robin_hood!

  8. Very well done video. Gave me all the information I wanted with no filler. Subbed.

  9. What about Rubicoin?

  10. Hey Ryan do you earn money for selling stocks or buy?

  11. Do you have to write this down on your taxes?

  12. Robinhood is a big pooplicker company!… its ok.. thx snyways, thanks for t as lking shit about it… you do something similar to this well not sll of your videos but you do lie a little bit… its not easy being a stock broker… but if you live it and youve got time and you know the lines and seasons yes you can do it and make money, but the average person cannot do that… although if you do you can make millions…

  13. Robinhood charges $75 to withdraw money from your Robinhood account. Their app also states if you have over $2000.00 in your account the fee structure is different, but I have not been able to find those fees.

  14. Yes is all Free WE GET IT πŸ™„

  15. I have no problems with robinhood

  16. I like robinhood but I’ve been marked as a pattern day trader and I only made three day trades in a 5 business day period

  17. Is there another one that can be used for people not from the US?

    December 12 2018, at 9:30 am I sold (2) NFLX options and (3) SPY Options which expired today. My profit in this transaction was about $4,000 US and after my options was sold my account was deactivated. I sent email to the TEAM SUPPORT of this company and in the afternoon I received an email saying that my transaction was cancelled without any reason or explanation.

    I loose my profit $4,000, the money invested in the SPY options which expired today and the opportunity to sell them to a good price today.

  19. If your an option trader then Robinhood isn't so great…

  20. Stop repeading information it is wasting my life

  21. Ill jump on robin hood once new york is available for crypto

  22. RobinHood is holding my funds for 6 days ..! Why .?

  23. Great clear cut video. Thanks for taking the time to explain it!

  24. So you're saying it's basic…

  25. I started with Robinhood a few years ago and have been happy with it. I previously used Wells Fargo and Schwab for over 30 years. As a retiree, I use the account for dividend income therefore I prefer not to have dividends reinvested. Even if I don't draw out the funds I prefer choosing which stock to apply the dividends. I have used CNBC always for research even when I had stocks with Schwab and WF.

  26. Robinhood is absolutely TERRIBLE.


  28. So, if I don;t live in the U.S. I can't use it? Am I getting that right?

  29. Unless ive just been dreaming up my trades there are quite a few stocks that are considered penny on rh.

  30. Good review. Thanks!

  31. Do you have to manually reinvest your earnings or does the app do it for you?

  32. Rob in hood

  33. What its worth for if its only for US citizens?

  34. Thank you for keeping it simple and direct with another option. I hate when someone goes off on a tantrum to show how knowledgeable they are on a certain subject. Checking out M1. Thanks again

  35. SCAM

  36. Do you have a beginner video of stocks?

  37. Where is the free stock course? Thanks

  38. Check the reviews before making a decision. Robinhood has absolutely horrible reviews. Learn from other people's mistakes or learn from your own.

  39. Hypothetically Is it safe to put millions and millions in a Robinhood account ?

  40. It's a con that it's opening up the market to people who otherwise couldnt? you arent limited by the platform…it doesnt prohibit you from doing investment research on other website. god damn the logic of rich people is always faulty

  41. Are u sponsored by m1 finance? Lol

  42. I have a question. If you're not a US citizen, I can't use robinhood to invest?

  43. Thursday 1/31/2019, When the Market opened, again Robinhood app and web was unstable. I was unable to login for 10 or 15 minutes as soon when the market Open and I have a Options in the money ready to be sale and I cannot do anything. Thank God later I could sale. Robinhood is not reliable booker. I am done with them.

  44. I used to be an Investment Banker in the mid 90s. Learned a great deal while working with variation of stocks such as ADRs, Buy Directs and Global Buy Directs. I left the industry now I am on my own to move forward start again so this information was definitely helpful. Thank you.

  45. This was easy to understand and very helpful. Thank you!

  46. I want to trade….I have $400 that I want to open with,I'm gonna make my trades on Robin Hood,and search with think or swim, but I look look at it,set it to paper trade,now I go in and the thought goes through my head "hmmm,me caveman, me need caveman simple way to search" and have no clue what all the 100s if not 1000s of ways to set it up even are. I'm seeing kids 18-25 just making $ hands over fist following the rules and a 5 minute search…is there a decent simplified version or anything else that's not so complex

  47. this app is geared towards the new stock/ day trader. they are not for retirement. pls keep that in mind

  48. I think Robinhood will make interest on the funds deposited by you and me. I hear that they take 6 days to release funds once sold. Some others say there is a $75 charge for withdrawals? I don't know if that is true. So nothing is really Free then. They have to at least make INTEREST on your money deposited with them. They won't tell you that. That collective money could be in the Billions!

  49. The biggest con, in my opinion, is Robinhood sells your trades to HFT companies. And makes much more than other brokerages this way.

  50. I enjoy all Ryan's videos and watched all his reviews of the trading platforms. I picked Robinhood in November, it is indeed free and worked well most of the time. I've enjoyed decent success and made almost $1000. However, recently twice in the the past week, their system experienced an outage, for me they lasted over a half hour. There may have been more that I was unaware of. This really worried me though and Friday I sold everything. The outages did not affect me since I was long on my stocks, but others were…this does not seem to be reported anywhere except reddit…I will chose a different platform that Ryan recommended as soon as my money is back in my bank. Just wanted anyone considering RH to know.

  51. Robin hood does allow for automatic transfers now. You can link your bank account and transfer it to your robin hood account on a weekly/monthly/quarterly basis

  52. Are apps like this required to send out financial statements or tax forms when we need to file our taxes? Can that information be downloaded directly into your online tax pre software?

  53. Hey is there a way u can look at my portfolio?

  54. OK before i watch this video any further i need to know something. because in the video you state that you cant purchase penny stocks, in another video i was watching by another stock investor and he said penny stocks are any stocks under 5$ per stock, and iv had this confirmed by people outside of his video, is this the case? because if so then you can now in fact buy penny stocks because ive bought hundreds of shares for even 10 cents a piece. do i have the definition of penny stock right or is this video outdated

  55. Great info thnks lot

  56. I am a true beginner. I downloaded Robinhood. I invested 10 cent cause I was very very cautious with money. It gave me a free share. Does it do that all the time and why did it do that?Nothing g is for free.

  57. I can't get over how much this guy looks like me!!!

  58. I agree. Robinhood is a great platform for new investors to get their feet under the water. It does, however, lack educational analysis that other platforms may provide. It is also more "active' than passive thus requiring knowledge in each finance.
    For those who knows how to play, they will make money
    For those that don't know the rules, robinhood will simply be a way of gambling.

  59. I deal with Robinhood customer service on a weekly basis. They're EXCELLENT at returning ur emails promptly. Ive also seen verbal communication (over the phone) with Robinhood.

    As far as Robinhood being 100% free, its just simply not the truth…
    Each stock sale in the US (for all brokerages) is charged the following fees:

    SEC: $13.00 per $1,000,000 of principal (sells only). This fee is rounded up to the nearest penny. FINRA Trading Activity Fee: .000119 per share (sells only).This fee is rounded up to the nearest penny and no greater than $5.95.

    Now that we’re transitioning to Clearing by Robinhood, there are a few extra charges that Robinhood can reduce or eliminate. If u don't know, Robinhood has never charged commission fees, but they did pass along some fees that our clearing broker charged. These include fees for participating in voluntary corporate actions, fees for requesting broker-assisted trades, and fees for bank transfer reversals. Now that Robinhood has complete control, they can make sure you have the best experience possible.

    Overall, I absolutely recommend Robinhood. Especially for new investors. πŸ‘β˜˜πŸš€πŸš€πŸš€β˜˜πŸ›«πŸ–πŸŽΎπŸ—Ίβ˜˜πŸ‚πŸπŸ”β˜˜

  60. I like Robinhood it has no minimum account balance and comission free trading, which is pretty much all I need. I can research other places. I only have $30 to invest at the moment so it allows me to get the most out of my money.

  61. This video is out of date. Robinhood now has candlestick graphs as well as auto deposits

  62. Well, robinhood is easily the worst brokerage I've dealt with. On my 2018 tax documents, they made a huge mistake with a taxable gain that is as massive as it is nonexistent. (Hence why they didn't give me the money on it..) For over the past two weeks (really from the time they first informed me it was available), I've been trying to get in contact with them to fix it. They've been agonizingly slow to respond and the only response they've so far given me had nothing to do with the problem. Their "customer service" number listed, when you call it, it just tells you to visit the site. About sums up what to expect when you have a problem.

  63. Cant you just use multiple platforms?

  64. Is it open to the outside world or only to US citizens

  65. Thank you Ryan for this basic information

  66. So how does robinhood handle dividends from certain shares like Costco?

  67. If I am just getting started, what’s a sufficient amount to start investing? Is anything lower than $100 worth it?

  68. Where is the 4th day trading and night trading information? Or did you just made this video to advertise other platform.

  69. In my experience Robinhood isn't a secure trading platform. 2+ years trading with them, I've caught many percentage mistakes and glitches. Find a better trading platform.

  70. I need pay tax from this money???

  71. There is SOOO much free information on the web. Robinhood is just a purchasing platform. Yea it lacks a few buying options, but with time will get better I’m sure.

  72. Apologies if this has been asked already, I didnΒ΄t see it.
    I am an extreme beginner but I know that, in the future, I will want to be research oriented to be most informed on my decisions. With that in mind, is it a safe idea to start with ROBINHOOD to get my feet wet as it were?

    My sister-in-law sent a recommendation/invite, so as long as it is safe to use to get my feet wet but likely move onto more comprehensive platforms in the future, I am inclined to accept.

    Essentially, I'm wondering if it is safe to use with the inherent idea that I wouldn't be using it in the future or if using it will somehow tie me down/complicate future investment?

  73. Robinhood has Candle Stick Charts

  74. I am a first time viewer, and I subscribed

  75. This is only for people living in US

  76. Lol Robinhood is too simple but still the no fee is good

  77. Excellent video. new subscriber, great info

  78. Penny stocks are rounded off to the lower number and you dont get the full portion of the profits

  79. If you invest through Robin Hood what do you wait for when you have to file your income tax return ?.

  80. Its a shame this app is not available in Europe. @ryan do you have an apps that you would recommend to use in Europe?

  81. So short answer if robinhood changes a few thinks will dominate all the others are doomed to die since all young people are in robinhood. Sad.

  82. It’s not free lmao .. they rip you off . They do charge fees .. they have. Spread and if you don’t pay attention they will rob you blind .. and the prices are not the same as true value

  83. I use Charles Schwab and Robinhood. Robinhood is my favorite I love it. They have penny stocks plus OPTIONS and you can do SPREADS. They are updating the app fast. I highly recommend it. You can automatically make it DEPOSIT funds into your account is easy.

  84. do you still need to be an us citizen ?

  85. Thank you for the thorough review

  86. off topic but that globe is bad ass

  87. whos make money on this app

  88. anybody are interested to sign in

  89. About how long would you say it takes for Robinhood to Buy/Sell a trade you request? Is it instant? Or at least within the first few minutes. There has been times I wanted to jump onto a surging share at least for that day, I'm aware of Robinhood's Day trading rule about 3 trade from the same stock in a 5 day period. I think I can manage that. But for lower cost stocks that are suuuuurging, M1 is essentially useless as M1 seems to buy the stock when it is most expensive during the day. And sell it when its worth the least.

    The fractional share thing is still awesome and buying Amazon or Google makes it more obtainable at first.

    But some of the smaller stocks, or IPO's that have surges all the time especially when new, I don't have time for M1 to dilly dally or whatever it is that they do when I'm just losing money.

    I have fidelity too for my retirement but I did buy stock on there but its 5 dollars a trade, but it was instant when I bought it. All i did was go to the next page and BOOM, i had the stock and it was gaining immediately.

    There are some IPO's I'm looking at and I don't think M1 would put me at a advantageous position. Even the recent IPO RVLV the other day I wanted it immediately and it went from $16 and finished the day around $38 on its first day. I had no chance to jump in as M1 had me jump in when it was around $26. I didn't lose money, its just I didn't gain as much as I would have wanted to.

    For long term things like VNQ, VOO, other ETF's or MLP's, or ETC's, or ones I'm in for the Dividends, M1 has been friendly, but on some of the swing stocks or day trades, I think Robinhood is my best bet. So long as its trade WINDOW isn't like …. 2 hooouuuurssss. 😨

    Sorry for the long post.

  90. I want to download it but it say I need to put my social security 😐

  91. Dated, you can buy penny stocks, and OTC stocks. I have some in my account now.

  92. Big CON.
    Doesn't give you the option for beneficiary

    RobinHood's is very bad
    They stole my money
    I have evidence on what to say.
    You are a liar.
    Look for a lawyer. Specializes in digital currencies.

  94. I'm just a bit frustrated with M1 Finance because the trades take so long; if you put in a buy order, it will go thru the next day & usually sometime around noon. I'd prefer more accuracy on exactly what price I'm buying into a stock & what I'll sell at. By the time M1 makes a trade, the price may have fluctuated by a dollar already & if your buying 300 shares- that's a big difference.

  95. Is Robinhood available in Canada?

  96. U can prolly get hacked easily with this shit

    Use bitcoin

  97. so what ur saying is…

    money = good

  98. i have lost all my life savings to some particular brokers i met online ,all they kept on doing was to ask for more money until i asked for my funds back,i never knew it was all fraud all this while i have been investing all i had with the intention of making more money instead i lost all, i was only lucky to have an encounter with a recovery expert hacktools @ tutanota dot com

  99. Amazing introduction and clear information and good delivery. New viewer and I already enjoy the review.

  100. I’m always going to research in multiple places anyway , if Robinhood tells you it’s a 100% buy , u better do some research, don’t believe everything you see without the research!

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