I've been trading stocks with the Robinhood app for over two years now so I
just thought that I'd do an honest review for you guys so you can decide
for yourself if it's something that you want to use or not
I'll cover everything on the stock trading side of the app and then I'll
give you guys all the pros and the cons of Robinhood so it's totally an honest
review now if you just found this channel I'm Jason with honest finance
and I make a lot of videos on different topics that'll give your life and your
finances more value so definitely subscribe if you guys want to but now
let's just start talking about the Robinhood app if you're not too familiar with
Robinhood they're just another brokerage account but the big reason
that they're so popular is because they do not charge any trading fees which is
a big deal because with most brokerages you've got to pay at least about six to
ten dollars every time you buy or sell stocks which is just a waste of money
so if you bought just one share of a company for a hundred bucks then you'd
have to pay the Commission right now and then you'd have to pay the Commission
again when you sell the stock I mean paying a commission isn't that
big of a deal when you're buying a thousand shares at once because you're
only going to be charged the Commission based on the transaction and not on a
per share basis but because Robinhood doesn't charge any fees it's a lot
easier for a beginner to start investing because he can just buy one share for
about ten bucks and then he doesn't have to pay a commission which is a lot
better for him to actually get started they don't require a minimum balance to
get started investing so technically you could start investing with Robin Hood
with any amount of money now if you're new to Robinhood I've got a link in the
description which will give you and I both a free stock just for signing up if
that's something you're interested in it's a cool incentive because once your
account signed up you can use the referral link as well and you can get
free shares from all the people that you refer it to but I'll be honest I've
never gotten a free share that's worth more than 10 bucks but maybe you'll be
one of the few people that actually get lucky and get a good one so as far as
this review goes I'd say that Robin Hood is definitely a good platform to use if
you're a beginner or an intermediate investor I say this because it's a great
place to buy individual shares but if you're looking for fancy features like a
drip on your dividends or fractional share trading then Robinhood is not the
place to be but if you just want to make easy and simple trades that are
commissioned free then I would definitely consider using them and if
you're looking to open up any retirement accounts like Roth IRAs or IRAs then
definitely don't you Robinhood because as of now they don't
have any tax sheltered accounts so just don't even bother with that kind of
stuff so just plan on using Robinhood for all the different types of
investments that don't involve a retirement account and then also if you
plan on doing any type of automated investing where you don't have to do
much at all don't use Robinhood for this kind of
stuff because as of now everything is fully manual with them and that's just
how it is now as far as the platform goes it started out as an app but now
it's offered on desktop so if you like to do stuff on your computer then you
can definitely do that as of now they offer all the major stocks ETFs REITs
and they have free cryptocurrency trading and free options trading as well
Robinhood also has a premium subscription service called Robinhood
gold that cost 5 bucks a month but they do give you quite a few features which
I'll list right here ok so from my understanding this is really good timing
because these features are brand new to Robinhood gold and you're gonna get
access to premium research articles level to market data higher instant
deposits and margin trading for only 5 bucks a month now if you're subscribed
to Robinhood gold and you want to use margin trading they will let you borrow
up to $1,000 interest free but anything after that is gonna be at 5% interest as
of right now trading with margin is something that I don't recommend that
most investors mess around with but if you are gonna go down that route then
Robinhood does have some pretty competitive rates I mean there's already
plenty of risk when it comes to investing so if you're planning on doing
margin trading and something goes bad in the market then it's only gonna compound
your problems because of the borrowed money Robinhood has also been working
on what they call a cash management account which is basically just a
savings account but so far they're advertising that it's looking to be
about 3 percent interest which is really good it isn't quite available yet as of
making this video but hopefully soon they'll have it rolled out and if this
video is making sense can you please comment down below and say I got it so
that I can understand if you guys are actually getting what I'm talking about
thanks now another really cool feature about Robinhood is that you'll actually
have instant access to your deposits as long as it's less than a thousand bucks
and this is really handy because if the market crashed today and you wanted to
quickly move on some stocks then you couldn't do that unless you actually
have the cash waiting but with this feature you can actually
that's the money instantly as long as it's less than a thousand bucks and the
reason that you generally don't have access to your money instantly is
because banks take three days to transfer that money so if you wanted to
buy a share right now you generally can't do that because you got to wait
the three days but because of the instant deposit feature from Robin Hood
you can get those funds instantly as long as you're in good standing with
your bank getting the money to Robinhood because it's not like you can just
deposit seven hundred bucks to Robinhood when you don't even have the money
in your bank account to begin with and also you're gonna have access to the
same feature if you sell shares with Robinhood because generally you have to
wait three trading days to get your money but with Robinhood you're gonna
have instant access to those funds so that you can invest in something else as
quick as you want now just keep in mind though that if you want to withdraw
money from Robinhood you are gonna have to wait three trading days because
legally that's the way that it works and you can't do anything about it
so overall the instant deposit features pretty cool if you're working with money
that's less than a thousand bucks but if you are a Robinhood gold member you can
up that all the way to fifty thousand dollars as long as your account has that
same amount in it Robinhood also has a few different order types that you can
choose from when you're trading stocks so just be aware that you don't have to
buy everything at market value and that's a good thing and then if you're
ever browsing around Robinhood they also have a ton of different articles
that you can read based on the stocks that you're following and that you're
interested in now when it comes to researching individual companies Robinhood gives you a tiny bit of information but not very much they do at least give
you a one to five year history the p/e ratio and then dividend yields but as
far as financials go you're gonna have to go elsewhere to find that type of
information but if you do end up leaving Robinhood to find out more about a
company I'd recommend checking out Yahoo Finance because they have really good
information on dividend history company's financials and a whole bunch
of other stuff that Robinhood does not have but at the end of the day my
overall experience with Robinhood has been really good because it's a really
simple platform to understand and it's really good for beginner investors
they're definitely not for everybody but in my experience Robinhood has changed
the industry with their free trades and they only keep getting better now once
again I'm Jason with honest finance and I make a lot of videos on different
topics that'll give your life and your finances more value so if you guys are
interested in that type of content definitely subscribe to the channel but
that's all for now