Ever want to buy stocks or cryptocurrency with no fee? Robinhood makes this possible. Robinhood is a trading platform with the idea that you shouldn’t have to pay to execute a trade like most stock and crypto exchanges have. Granted, in crypto, the fees are usually low compared to stocks where most companies want at least $4.99 a trade. This means it takes $10 in profit to make the trade even and for those of us trading with small amounts that can eat profits fast.
Ok, there must be a signup fee right? Nope. They do offer premium packages that give you access to things like pre-market trading and credit for margins but you don’t have to pay anything to transfer on/off Robinhood or make trades.
Then how do they make money? Robinhood makes money by investing the change left over from your trades. So if you buy $9.95 in crypto and have 5 cents left over they put that 5 cents into a high yield savings account and keep the interest. You can have your 5 cents at any time as it is always yours you just don’t benefit from having free cash sitting on Robinhood. For the user, it would be like putting it into a 0% savings account.
Can trade most stocks and major cryptocurrencies.
Free stock referral program. (Use our link and we both get a free stock when you link your bank account to Robinhood. No actual money needed.)
New features are released by region which can be annoying.
No Forex trading
Can not transfer crypto off Robinhood. (you buy it there you hold it there)
Overall Robinhood is great for traders that have a low budget or don’t want a firm managing their investments. It makes it easy to invest at your own pace and reduces the amount needed to gain profits. I highly recommend Robinhood for stock trading and its great for making a quick buck in the crypto market, however, if you want to own and transfer your crypto off an exchange than Robinhood is not the right solution for you.