Is Robinhood a good trading app for stocks?
Have anyone use Robinhood to trade stock without transaction fee? What do you guys think? It seems like a no brainer to use that? Is there any catch for this? What is the disadvantage of this?
I'm based in the UK so I haven't personally used this service but I decided to dig into it a little bit to see if it was of any use to value investors. After conducting some reseach it appears that many users of this service have experienced problems ranging from poor customer service to inaccuracies with their accounts. For more information on this read this article and be sure to scroll down and read the customer comments section at the bottom of the article, very enlightening indeed!
As value investors we tend to trade much less frequently than day traders so brokerage commission fees shouldn't be so much of a problem for us. My rule of thumb is to ensure that any frictional costs (i.e. Brokerage fees, FX conversion charges etc) associated with a trade are limited to <5% of the total value.
If you are looking to compare the various pricing structures and market covergae of stock brokers to find the one that suits you best I recommend taking a look at this excellent website;
I hope this helps and if you have any further questions please don't hesitate to ask!
The old adage of "you get what you pay for applies". Yes, it's free, but you'll get glitches and they won't be at a convenient time. Personally, not worth it.
Now, if you have a couple hundred bucks that you want to play with and use to try a few trading ideas, you couldn't do better.
I've been using Robinhood for over 2 years now and I'm pretty amazed how easy it is to use and that it is commission free for every trade. I'm not a professional investor and I use other websites for my research.
The transfer to Robinhood or back to your bank account takes only 2-3 days and it has always worked without a problem.
I also love that I have it on my phone at all times.
They just started a promotion with the referral code below where each of us would get one free stock. You can try it that way without using your own money at first:
Let me know if you have any questions and I hope I can help.