Robinhood is a new stock trading platform that offers commission free trading of stocks with an extremely affordable margin option. The app cost nothing to use, and stocks cost nothing to buy or sell. You even get 1 free stock just for signing up here to test drive the platform.
Currently Robinhood is only available on mobile phones for common stock trading. Current features include:
- Never pay a penny to buy or sell any stocks, 100% commission free trading always.
- Instant deposits after your initial deposit (instant deposit amount varies based on account size).
- Margin trading with Robinhood Gold.
- Extended hours trading with Robinhood Gold.
- Free Stock Transfer (Robinhood will cover previous broker stock to transfer shares).
- Robinhood Web: The website has been in beta testing for a while and will be released first half of 2018.
- Options Trading: Options are coming to Robinhood, is already being beta tested and will be available in 2018.
- Cryptocurrency Trading: The commission free model is coming to cryptocurrency. This is the newest feature and beta testing will begin in California this month.
You can try Robinhood Gold out for free for the first 30 days and cancel at any time.
After Hours Trading
You can trade for 2 and 1/2 extra hours with Robinhood Gold. You get 30 minutes extra in the morning from 9:00 to 9:30 and 2 extra hours in the afternoon from 4:00 to 6:00.
Starting at $2k you can get $2k in margin for $10/month. This goes scales all the way up to $50k for $200 a month. You can view the full Gold tier chart here:
I was excited to get a free stock so I could easily play around with the app. I got my free stock right away, it was a share of Sirius XM worth about $6 dollars. The free stock also must be held for 3 days before selling. It took about 4 days to get my bank approved and my initial deposit in Robinhood. After that I could deposit up to $1k instantly. Once I had $2k I was able to get the first tier of Robinhood gold, and increase my instant deposit limit to $2k, plus receive an additional $2k in margin trading and after hours trading.
At first I thought I would never do stock trading on my phone; however, after using the app I was very pleased with the interface. I was able to quickly and efficiently place all my buy and sell orders. Setting limit and stop orders is just as easy. The app tracks enough stats about the holdings and overall to see your account value increase/decrease. The Android app seems to have a few more features than iOS but this will probably change as the platform is improved. I am also looking forward to Robinhood in early 2018.
Overall I am very happy with Robinhood and look forward to the upcoming features. I am very happy with being able to buy/sell stocks at any time at no cost. I have recommended Robinhood to all my friends who trade and they have been very pleased. One friend has already transferred their holdings to Robinhood and others are looking forward to doing so when Robinhood web and options tradings are available.
So far I am very pleased with my decision to get Robinhood and will continue to use the product for the foreseeable future.