Robinhood review and tutorials

Robinhood trading service

Detailed Robinhood Review 2020: Forex, CFD'S and Crypto Regulated Broker

Robinhood have pioneered mobile trading in the US. Their offer attempts to provide the cheapest share trading anywhere.

Robinhood trading service

Robinhood trading information

Bonus
N/A
Instruments
CFD, Stocks, Options
Demo Account
No
Min. Deposit
No Min
Min. Trade
$10
Regulated By
SEC
MT4 Integration
No
Mobile Apps
iOS, Android and Windows
Auto Trading
No
Trade Signals
No
Islamic Account
No
Robinhood trading service

Forex

GBPUSD Spread
N/A
EURUSD Spread
N/A
EURGBP Spread
Assets

CFD

FTSE Spread
N/A
GBPUSD Spread
N/A
Oil Spread
Stocks Spread
0,3% Var

Cryptocurrency

Spread
Coins

Official Robinhood Registration

Robinhood is a trading broker that’s gained serious traction for bringing internet trading to the masses via its free program. To be exact, it has shares, ETFs and cryptocurrency trading on offer. However, as reviews emphasize, there can be a cost to pay for these low fees. With that said, this particular review of Robinhood will analyze all facets of the offering, including programs, apps, customer accounts and service, before finishing with a final verdict.

Robinhood Trading Broker

A Quick Look at History

Robinhood founders Vlad Tenev and Baiju Bhatt have been Stanford University students in 2013 when they started the broker firm. Their simple approach to trading the markets brought them $3 million in investments prior to product launch. Since then Robinhood has gone worldwide and raised an astonishing $176 million.

The business has registered workplace headquarters in Palo Alto, California. Traditionally the broker is well-known for its clear and clean app for smartphones. However, because the amount of consumers and revenue has increased, the market decided it’d launch a online platform in 2018.

February 2018 also saw Robinhood present cryptocurrency trading in:

  • Bitcoin (BTC)
  • Ethereum (ETH)

On top of this, they’ll offer support for real-time marketplace data for these digital money coins:

  • Ethereum Classic (ETC)
  • Bitcoin Cash (BCH)
  • Bitcoin Gold (BTG)
  • Dogecoin (DOGE)
  • OmiseGO (OMG)
  • Monero (XMR)
  • Litecoin (LTC)
  • Qtum (QTUM)
  • Dash (DASH)
  • Ripple (XRP)
  • Stellar (XLM)
  • Zcash (ZEC)
  • NEO (NEO)
  • Lisk (LSK)

To start with, Robinhood was directed at US clients only. However, as a consequence of growing popularity capital was soon raised to get an expansion into Australia. There have also been talks of growth to Europe and the UK. After user testimonials, the agent also started exploring the accession of options trading into the repertoire.

Minimum Initial Deposit 

There is no minimum deposit for standard accounts at Robinhood. When you do have a Gold Margin account, though, you will need $2000, which is the minimum regulatory provision. Of course, you’ll still need enough money, for example, to purchase one share of the Nasdaq stock or ETF.

These small minimum deposit thresholds are a huge benefit for this broker because other rivals ask for up to $1,000 to open an account.

Spreads, Commissions & Leverage

There is no minimum deposit for standard accounts at Robinhood. When you do have a Gold Margin account, though, you will need $2000, which is the minimum regulatory provision. Of course, you’ll still need enough money, for example, to purchase one share of the Nasdaq stock or ETF.

Robinhood is one of the cheapest online brokers today, thanks to the pricing system. 

Other Trading Fees

Many app comments about Trading Fees happily point out there are no secret fees. Inactivity, ACH or withdrawal fees are zero. That being said, there is an outgoing transfer fee of $75 ACAT.

There are also rewards attached and exclusive deals to keep an eye out. Robinhood, for example, also provides a referral deal where you can get free inventories when you add a buddy to the network.

To see what promotional deals are currently going on, head over to the official website.

Trading Platform

After the release date of the web platform for 2018 was revealed, an incredible 640,000 clients signed up to the waiting list quickly.

Upon signing in, the online portal will be more stable than the smartphone app, but still lacking in comparison to rivals. Users will be able to access from the menu: 

  • Analyst ratings and market analysis from Morningstar
  • Price data and current share price of a given sector, such as Japanese stocks, for example
  • Ticker Profiles will include a list of recently purchased stocks and index funds that may help users recognize potentially lucrative assets.


While it may be easy to view stock prices and access features from the menu, the charting kit will be small. In fact, the online platform won’t have backtesting facilities or advanced analytical methods. 

That said, Robinhood was swift to reveal that it would be offering advice about how to use the new web-based platform. That would mean that all mobile customers can sign in easily with their web login information and start speculating on popular financial markets.

Mobile App

Robinhood Mobile trading app
The Robinhood App

Trading platform reviews are divided when it comes to the service of Robinhood’s mobile app, which was the only way users could position trades until 2018. Firstly, it is worth noting that they sell applications for both iPhone and Android users that can be downloaded in just a few minutes from their respective app stores.

Software reviews are easy to show how specifically the platform is targeted towards new traders. The user interface is thus simple, but powerful. 

You won’t get screeners, software to backtest, or advanced apps. Also, it’s not all in one place. And you’ll need to go somewhere to do your technical work, and then go back to the app to do business.

Having said this, it is not too sparse. You can still:

  • Execute trades
  • Assess watchlists
  • Keep up with new information
  • Pull streaming stock prices
  • Deposit or withdraw funds
  • Alter your security preferences
  • View charts with fundamental metrics
  • Conduct basic market study

In addition to that, data pops up to help walk you through getting the maximum from this program. Customer care is only a tap away and following an upgrade, details of new attributes are immediately pointed out.

How to use the App

Feedback from the Robinhood concurs it is easy to place trades. The trade screen can be accessed from a ticker profile. Alternatively, a ‘Buy’ button will appear when you swipe left on a ticker when in a watchlist. A ticker may also be removed by swiping over to the left. 

Reviews of iOS and iPhone apps do state that there are still things you can’t do. For example, in watch lists you get zero optional columns beyond the last price. Also, you can’t change charts when you pull up a stock quote, except for six default data ranges. In fact, you can’t do the technical analysis. Finally, horizontal display is not in a landscape mode.

App Verdict 

It is fantastic that Robinhood is offering free stock trading for Android and iOS users. Often great for new traders is the built-in customer security because it restricts high-risk investment. However, stock market reviews would point to various rivals providing more robust smartphone applications to those at peace with the risks associated with high-volatility instruments.

Payment Methods

Once you have signed up for a Robinhood account, you will need to deposit funds before trading can begin. Luckily you can directly connect your bank account to Robinhood to make both deposits and withdrawals. Plus, it’s fast and simple to check your bank account.

Notice Robinhood does recommend connecting a Checking account instead to a Savings account. This could prevent potential reversals to the transfer.

Notice Robinhood does recommend connecting a Checking account instead to a Savings account. This could prevent potential reversals to the transfer.

Robinhood Accounts 

Robinhood provides three different types of account: 

  • Regular account – This account will be issued automatically when you register. It gives you direct access to instant deposits. On top of that, when you trade stocks and make deposits of up to $1,000, you won’t have to wait for your money to process.
  • Gold account
    This updated account gives you extra purchasing power, higher instant deposits, plus longer trading periods. You’ll need to keep a minimum balance of $2,000 because it’s a margin account. Gold reviews are good, with consumers benefitting from the advantages that come with a margin account and more hours of trading. The price of a Gold account varies depending on the tier you pick. You’ll pay a flat monthly margin adjusted rate. It’s worth mentioning that margin trading can be risky. You can potentially lose more than just your initial investment.
  • Cash account – You can position commission-free trades in cash without immediate deposits and settlement. Remember that you can downgrade from the regular Robinhood account and Gold account.

Customers enjoy having the various options of account styles as illustrated by trader comments, helping them to find the best match for their trading needs. Account verification is also fast, so traders can fund their account and get on to prompt market speculation.

Demo Account

If you’re trading forex, S&P 500 or penny stocks, you can first experiment on a demo account before you risk real money. Robinhood does not deliver a free public trial account however, despite going worldwide.

While one might say that one doesn’t need it because you already have access to a free trading app, virtual trading with simulated cash remains a great way to test trading apps and get acquainted with the markets. Reviews will continue to emphasize this as a major downside to the Robinhood scheme before a trial account is launched.

Additional Features

Robinhood Mobile app additional features

Reviews of Robinhood investment are swift to point out the scarcity of testing tools and instruments. Instead, for those carrying out simple approaches, the network is set up further. 

Since the exchange offers only stock, ETFs and crypto-trading, customers get no info about alternative securities, such as options and futures. Proposals are in motion to encourage these kinds of tradings for the future. 

That said, inside the app, you’ll find simple metrics, valuation statistics and a news feed. But you could be better off turning to the likes of Yahoo Finance for extensive news reporting. Moreover, although the website provides updates and tips on resources, there is a noticeable lack of training videos and user manuals to help clients make the most of the app.

The restricted resources are a legitimate downside. For instance, the company might also support customers by offering details on blockchain technology and digital coin tokens, as cryptocurrency trade in the UK and elsewhere is growing.

Regulation & License

In recent years, there has beem a spike in hacking and offers of riches from some brokers. Traders are thus rightly searching for trustworthy and legal trades. Fortunately, Robinhood is a member of both FINRA and the SIPC, as client comments show. In fact, the SIPC offers compensation of up to $500,000 per customer, with a sub-limit of $250,000 for cash claims.

On top of this, Lloyds and a number of other London Underwriters offer extra cover. This guarantees consumers have additional coverage in the event that normal SIPC caps are not enough.

Benefits

There are a variety of very compelling reasons to chose Robinhood, 
including: 

  • Costs – Trading rates are zero for purchasing or selling stocks and ETFs. The commission-free system is ideal for low-capital traders. It is not until you take Robinhood versus Coinbase, Vanguard, Fidelity and others that you know how low the trading costs are for Robinhood.
  • No account minimum – Trading blogs and forums are riddled with concerns about high entry hurdles due to substantial initial deposit requirements. However, opening a Robinhood account is free, and cash deposits have no minimum balances.
  • Simple to use – Their simple-to-use software is safe, quick and easy to pick up. This is great for beginners who don’t want the complicated apps and choices to drown in.
  • Free transactions by banks – ACH payments are still secure. This will again cater to new entrepreneurs with minimal startup resources.
  • Mobile users – Robinhood provides both iOS and Android users with a strong smartphone trading device. Users may carry out market analysis, exchange and handle their account from inside the program with ease.

Disadvantages 

Despite the number of positive features, Robinhood’s deal also has some
drawbacks, including: 

  • Limited research & education – Investing reviews are quick to point out that Robinhood is lacking in terms of in-depth analysis and research tools. This can discourage inexperienced traders seeking additional resources to help them grow as traders.
  • Restricted products – Although the brokerage has taken steps to provide cryptocurrency trading, user reviews point out that there are alternatives that provide a much wider range of tradeable resources.
  • Basic charts – Charts and trends are an essential part of your study of the market. Unfortunately, take Robinhood vs. Etoro, Etrade and TD Ameritrade and the former clearly provides an incredibly simple charting ki. In reality, users only get tick details and historical price data, without the possibility of customizing.
  • Real-time data concerns – Despite the actual app displaying real-time quote data, terms and conditions indicate that data may be delayed by up to 20 minutes.
  • Types of simple orders – Robinhood does not accept advanced forms of orders or options,
    though limits are set up to 5%. 
  • Accessibility – Since the Robinhood broker is still in its infancy, Robinhood isn’t an option for EU and UK investment and trading. Luckily the company looks set to attract traders from new countries as their net worth continues to grow.
  • Negative purchasing power -Consumers of Robinhood Gold are at risk of a negative balance. It does not lead to a margin call, but you do need to deposit additional funds. That should remind users that losing more than your initial capital is all too easy.

Trading Hours

Robinhood hours trading will depend on the assets you sell because they usually follow the markets. That said, those with Robinhood Gold have access to post-hour trading. As a result, consumers will be able to trade for an additional 30 minutes before the market opens and two hours after it closes. This is because many businesses release earnings results after the close of the markets. Yet the downside to buying and selling in after-hours sessions is decreased liquidity, which can lead to higher bid / ask spreads.

Contact & Customer Support 

The Robinhood Financial Company offers numerous ways to get in touch, including: 

  • Phone
  • Email
  • Twitter
  • Facebook
  • Google+
  • LinkedIn

Though, these services are not accessible 24/7 as user reviews are quick to point out. Consequently, any concerns you have outside market hours will have to wait until the next business day.

Despite the limited choices, customer reviews indicate support staff are fairly competent and can assist if the website is down or the app is not working. You can also get help with a variety of account questions.

Robinhood also tries to drive users to their online support center and FAQ page, where questions and requests from most users are answered in detail.

Notice customer service assistants are not able to provide tax advice. Instead, go to their official website for more information and pick Tax Center.

Safety & Security 

In addition to protection, Robinhood also has multiple security layers to keep personal data and information secure, including TPS encryption. Username and password login details can be combined in the form of SMS security codes with a two-factor authentication.

Instead, if your iOS or Android app has a fingerprint reader, you can sign in with the touch Code. This makes your investment app fast and easy to access and exit.

Robinhood Verdict 

If low cost is your goal then you can not beat the free trading service provided by Robinhood. But while the broker provides enough for users to comfortably trade, it may be best suited for beginners looking for a simple, user-friendly interface. As product and platform reviews show, seasoned traders may want to look for sophisticated tools and extra resources elsewhere.

Accepted Countries 

Robinhood recognizes only US traders.

Robinhood trading service

CLAIM OWNERSHIP

If you are the owner of this platform you can manage this account. First you need to claim the ownership of the platform.

Robinhood trading service
Authorized brokers
Deriv.com Forex Broker Review
Visit Deriv.com
Plus500 broker review
Visit Plus500
Olymp Trade Forex Broker Review
Visit Olymp Trade
24option
Visit 24Option
NordFX Forex Broker Review
Visit NordFX
Forex.com
Visit Forex.com
Binary.com Binary Option Broker Review
Visit Binary.com
Expert Option
Visit ExpertOption
eToro Broker Review
Visit eToro
Videforex broker review
Visit Videforex