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Robinhood might be for you if: You want to trade stocks from your phone for $0 per trade. The beautiful trading app is downright cheap, and it offers a smorgasbord of perks, some of which you'll struggle to find anywhere else (such as generous deposit matching).
In the following Robinhood review, we'll break down the pros and disadvantages of this broker.
Robinhood is a simple, low-cost brokerage with a few rare perks. What it lacks in customer service it provides in a smooth in-app experience. Without membership, you will lack research resources but still be able to trade affordably. With a membership, you can earn 3% and 1% match on IRA and taxable deposits. The app grows fast -- new perks are being released at a rapid pace.
$0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold
$0
On Robinhood's Secure Website.
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
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Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
|
Managing your finances under one roof | $0 for stocks, $0 for options contracts |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
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Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
|
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold |
Learn More for Robinhood
On Robinhood's Secure Website. |
![]()
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
|
Charts, research, and data analysis | Commission-free; other fees apply |
Learn More for E*TRADE
On E*TRADE's Secure Website. |
Robinhood is an affordable discount broker at its core. It's easy to pick up and get started, even if you're totally new to investing. A few features set it apart from your vanilla trading app.
For one thing, its premium membership gives a ton of perks that are actually useful (like deposit match). For another, its commissions are highly competitive. And let's not forget about its margin rates, which are some of the lowest we've found!
At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
See our full methodology here: Ratings Methodology
I started investing just before the 2020 stock market crash, about four years ago. Safety is important to me. I love brokers that keep things simple and well-insured. Since I'm a long-term investor, I prefer brokers that boost my retirement savings. At the very least, it should be easy for me to customize my retirement portfolio with 25-plus stocks.
Brokers tend to look the same these days. Robinhood is a notable exception. It gives two rare perks:
Here at Motley Fool Money, we pride ourselves as real users of most of the products across our site. Writers Cole Tretheway and Brittney Myers use Robinhood -- here are their experiences:
Of all the investing platforms I've used, few are as easy to navigate as Robinhood, and that goes for desktop and mobile app platforms alike. It's simple to make trades and manage my accounts whenever or wherever the need arises. Robinhood is my go-to place for my recreational investing hobby.
My favorite feature is access to all your notifications in one place. These include buy/sell requests and completions, shareholder updates, and Robinhood app updates. Less fun, it also includes things like margin call warnings. Robinhood feels video-gamey in a good way.
Robinhood lets you invest in the basics through standard accounts. You can purchase fractional shares of stocks and ETFs for as little as $1 on the platform.
Robinhood also gives you access to a debit card linked to your spending account.
Robinhood's premium membership hits the mark. There's a clear path to earning back your membership fees (and then some). The perks:
Robinhood is one of the lowest-cost brokers around. What it lacks in account types, it makes up for in $0 commissions. It's one of the few brokers that charges $0 per-contract options fees.
Reason | Cost |
---|---|
Stock and ETF trades | $0 |
Options trades | $0 |
Gold membership (optional) | $5 monthly |
Outgoing transfer (ACATS) | $100 |
Outgoing transfer (Wire) | $25 |
Instant brokerage-to-bank withdrawal | Up to 1.75% |
Robinhood gives you hyper-competitive margin rates. The more you borrow, the lower your rate gets. Robinhood Gold members borrow the first $1,000 of margin at a 0% interest rate.
Amount Borrowed | Margin Rate |
---|---|
Up to $50,000 | 6.25% |
$50,000 up to $100,000 | 6.05% |
$100,000 up to $1 million | 5.75% |
$1 million up to $10 million | 5.50% |
$10 million up to $50 million | 5.45% |
$50+ million | 5.20% |
Robinhood sometimes offers promotions that could save you money. Click below to go to our dedicated page covering current Robinhood promotions:
Robinhood gives excellent educational resources to beginners. On Robinhood Learn, you can find many how-to articles and investing term definitions. There's even lots of content on advanced topics, like options trading.
FYI, there's no "course," so it's on you to brush up on the basics and advanced topics. You can find Robinhood Learn articles on desktop or the app.
However, if you're looking for in-depth stock research, you can do better than Robinhood. Robinhood tailors its research and educational content to beginners, and only Robinhood Gold members get access to Morningstar research reports (on select stocks only). It's a useful perk, but investors who rely on technical indicators will likely come away disappointed.
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Robinhood features both a desktop web portal and a mobile app. Impressively, both are simple in design and easy to use.
The desktop interface is great for reading news articles and reviewing Morningstar research. It can also be nice to scroll through your stocks on a big screen, so you can see the ratio of green (good) to red (bad) on a given day.
Be aware that two-factor authentication (2FA) may slow down your desktop login. Although 2FA is great for security, it makes it a little more of a hassle to use Robinhood on desktop. The app is more convenient for most things.
During Robinhood's "Gold Standard" event, CEO Vlad Tenev said that the Robinhood app would change its layout a lot. This is expected to roll out in 2024.
Using the Robinhood app is quick and easy. Upon opening the app, you can see your account balance and investments. You can monitor any account in one tap. Tabs along the bottom include "Investing," "Crypto," "IRA," "Spending," and "Profile."
Robinhood has gotten in trouble for "gamifying" its app before. However, it seems to have dialed down these elements.
The Robinhood widget lets you see how your stocks are trending without opening the app. I recommend it, since you might be tempted to frequently open your account otherwise.
Customer service reviews are mixed. Robinhood rates decently on the App Store (4.2) and Google Play (4.1). User complaints mostly address the layout, which some find confusing.
On Trustpilot, Robinhood scores a 1.2. This is typical for big financial services, though it could be much better. It scores slightly worse than Webull (1.5) and much worse than SoFi (4.6), two of its biggest competitors. Complaints address poor customer service and difficulty reaching out.
You can contact Robinhood customer service one of two ways:
You request a phone call in advance through the app. Or, you can send a chat and wait for a representative to get back to you. This could take a while depending on wait times. I've used it a few times, and Robinhood has always gotten back to me within 24 hours.
Robinhood takes standard measures to secure your accounts. Your investments are covered by SIPC insurance for up to $500,000 (including $250,000 for cash). Cash in your Robinhood Spending account is FDIC insured through Sutton Bank, Robinhood's partner bank. up to $250,000.
You can boost your FDIC savings. If you opt into Robinhood's brokerage sweeps program, your cash moves to partner banks. There, it's FDIC insured up to $2.5 million.
Robinhood scrambles passwords, encrypts personal information, and requires 2FA upon login. These are all standard and important security measures that keep your money safe.
Robinhood was founded in April 2013 by Vladimir Tenev and Baiju Bhatt. They aimed to democratize investing.
Robinhood's popular trading app launched in March 2015, and was one of the first firms to offer stock trading without commissions. More than 800,000 people were on the waitlist for the app when it launched.
In 2018, Robinhood made its appeal wider by adding cryptocurrencies like Bitcoin through Robinhood Crypto. This move made Robinhood one of the first to offer an easy way to buy virtual coins without fees.
In 2021, Robinhood went public in one of the year's most anticipated IPOs. It now trades under the ticker HOOD. As of 2023, more than 10 million people use Robinhood as their primary brokerage.
Robinhood has been the subject of controversy numerous times. While these issues are important for Robinhood to navigate and important for investors, we believe Robinhood is a solid broker to consider, which is reflected in our overall rating.
Here are some of the serious issues that have arisen:
Robinhood has done an excellent job of learning from these incidents. For example, it has done a good job of building its educational library and adding features for long-term investors, such as IRA accounts and its 1% match.
Keep reading about Robinhood on these pages:
Robinhood is a user-friendly broker with minimal fees, but it isn't right for everyone.
What follows are some things Robinhood doesn't offer:
Generally speaking, Robinhood lacks deep account types, investment types, and the customer service you might find at better-funded brokers like Fidelity or E*TRADE.
Robinhood facilitates cryptocurrency trading on its platform, and there are currently 15 different digital assets available, including Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Litecoin, and Stellar Lumens. Plus, Robinhood is one of the few places to buy and sell cryptocurrencies without commissions.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
E*TRADE services are available just to U.S. residents.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.