Robinhood
Commission-free trading for hands-on beginner investors
How it works
Robinhood is the mobile-first brokerage that popularized commission-free trading. You can trade stocks, ETFs, options, and crypto from a streamlined app with fractional shares starting at $1. The platform has expanded to include IRAs with contribution matching, a cash card that earns stock rewards on spending, and the Robinhood Legend desktop platform with advanced charting for active traders.
Is it right for you?
Consider if you
- You want to trade stocks, ETFs, and options with zero commissions
- You're a beginner looking for the simplest and most intuitive mobile app
- You want to trade crypto alongside stocks in a single app
Skip if you
- Investors who need mutual funds, bonds, or joint accounts
- Those wanting custodial accounts, 529 plans, or SEP IRAs
Your money and data
Robinhood Financial LLC is an SEC-registered broker-dealer and FINRA/SIPC member. Your invested assets are SIPC-protected up to $500,000. Robinhood carries excess SIPC insurance with a $1 billion aggregate limit and up to $50 million per customer. Cash swept to program banks is FDIC-insured up to $2.5 million for individual accounts and $5 million for joint accounts. Cryptocurrency is not SIPC or FDIC protected.
Pros & Cons
Pros
- Commission-free trading on stocks, ETFs, options, and 28+ cryptocurrencies
- IRA with 1% contribution match and 3% match for Gold members
- 24/5 extended trading hours from Sunday 8pm to Friday 8pm ET
Cons
- No mutual funds, bonds, joint accounts, or custodial accounts
- History of platform outages during volatile trading periods and regulatory issues
- Customer support has improved but still trails Fidelity and Schwab
Pricing details
$0 stock/ETF/options trades · Gold $5/month · Robo-advisor 0.25% annual fee · Cash sweep 3.75% APY with Gold
On robinhood.com · We may earn a commission
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