Robinhood is the app that got me started doing these investment app reviews in the first place, but why?
Honestly… I was bored and knew that someday I wanted to try investing a little bit on the side.
I saw a Robinhood ad offering me a free share of a stock for signing up, and thought “eh, why not?”
I’m not going to sit here and tell you some nonsense like “Robinhood is SUCH A GOOD app that it completely changed my life!!!” BUT if it wasn’t for Robinhood, I wouldn’t have this site, or my business… BUT that’s just personal stuff, so don’t let that influence you.
So let’s go over some details about WHY I like Robinhood, and why YOU might like it too.
How do we rate the Robinhood investment app?
Robinhood is a really straightforward investment app that feels really intuitive and simple.
It’s not QUITE as simple as some other apps out there, BUT it’s fairly close
The service itself is wonderful, now that they have worked out past issues.
They have been steadily adding small features, the most recent of which is the ability to set up recurring investments, which makes investing in your favorite companies a lot more convenient.
Robinhood doesn’t have the best sign-up bonuses or stock research tools, BUT they are decent enough to suit the basic needs of investors.
If you’re into cryptocurrency, Robinhood allows users to trade some of the more popular cryptos. They offer Dogecoin, Bitcoin, Ethereum, and a few others.
The Google Play Store reviews give Robinhood 4.3/5 stars, and the Apple store gives it 4.8/5 stars.
Overall, we give Robinhood 4.5/5 stars, and we recommend you try it out and see if you like it. You’ll at LEAST get a free share of stock out of it.
Robinhood investing services and app features
|Robinhood Features||Free Account||Premium Account|
|Monthly Fee||$0||$5/ month|
|Instant Deposits||Up to $1,000||$5,000 - $50,000|
|Level 2 Market Data|
Before Robinhood came around, the big investment brokerages were charging investors huge trading fees and commissions, and pressuring people to use account managers, which cost money.
Then Robinhood came around and essentially forced the competition to re-assess their commission rates, fee schedules, and platform fees.
The other brokerages had tons of other advantages, like fractional shares, powerful stock research tools, Dividend Re-Investment Plans(known as a DRIP), etc…
HOWEVER, all of that is rapidly changing.
Robinhood has been releasing new features like crazy, like fractional shares and a DRIP.
With just those recent changes alone, Robinhood went from having one of the most basic services in the mobile investing app industry, to being an actual contender.
Then they added support for cryptocurrency trading… which is huge.
Overall their service has been great for me over the last year.
The ONLY problem I have personally had with the platform is the fact that when they were releasing fractional shares, Robinhood had some ridiculously huge fractional share waitlist that seemed to take forever, BUT now we have fractional shares… so problem solved.
There HAVE been a few problems in the past for other people, for example: at the beginning of 2020 there was a glitch that allowed people to glitch their buying power by doing some shenanigans with Options on margin accounts. This didn’t actually cause huge problems, BUT it was obviously not optimal.
Overall though, Robinhood has done a decent job overcoming any obstacles they face, and they now have a wonderful service.
How simple is the Robinhood investment app?
I had ZERO issues as a first-time user (back when I was a first-time user) figuring out how to use the app, and that simplicity helped me overcome some of my fear of getting involved with investing.
That might sound silly to some of you, but I just felt really “over my head” when I first started thinking about being an investor, and Robinhood was a great icebreaker.
Robinhood sign-up and referral bonus program
Robinhood doesn’t have the best sign-up or referral bonuses in the industry, BUT that doesn’t mean it isn’t decent.
When you sign up for Robinhood, they will reward you and the person who referred you a free share of a randomly selected stock, priced between $2 USD and $200 USD.
There are NO deposit requirements, which is one of the main draws of Robinhood’s referral program.
The amount of money you can receive through sign-up and referral bonuses is capped at $500 per year.
MOST people aren’t affiliate marketers so that limitation won’t really apply to the average person.
It takes some serious effort or luck to refer that many people anyway.
We do it for a career, and it can be pretty rough, but if you enjoy it, it can be VERY rewarding.
Get a free stock for trying Robinhood
Robinhood stock researching tools
Mobile investing apps typically don’t have the greatest stock research tools to begin with (except maybe the Webull investment app). Typically the more powerful tools are reserved for professional trading platforms.
LUCKILY, you don’t need to rely too heavily on your app’s investing tools.
To invest responsibly you should be checking multiple sources of information, and Robinhood simply provides you another resource to look into. Nothing more, nothing less.
It’s common to have some questions about an app, especially when real money is involved, so let’s go over some of the frequently asked questions about the Robinhood investing app.
Is Robinhood legit?
Robinhood is a brokerage that’s regulated by the Securities Exchange Commission (SEC) , which is in charge of overseeing and ensuring transparency and fair dealings in the stock market. They are also voluntarily monitored by the Financial Industry Regulatory Authority (FINRA) and your investments are further protected by the Securities Investor Protection Corporation (SIPC).
So in simple terms, Robinhood is legitimate and your money is safe, UNLESS you make poor investments which cause yourself to lose money, but that applies to EVERY brokerage. That part is completely up to you, so don’t gamble away your life savings and try to blame someone else.
Should I give Robinhood my SSN?
It’s legally required for Robinhood, and all brokerage firms, to request and validate your social security number in order to allow you access to the stock market. The IRS wants their share of profits, and verifying everyone’s identity helps prevent misconduct.
Is Robinhood really free?
Signing up for a cash account with Robinhood is free, and so are trades within the Robinhood app, with the exception of regulatory fees, which all brokerages are forced to charge. They offer a premium service, known as Robinhood Gold for $5 per month to trade up to $1,000 on margin, or 5% for anything above $1,000. Here’s a screenshot of the Robinhood Fee Schedule as well:
How does Robinhood make money?
Robinhood, similar to other brokerages, makes money in a number of ways:
Does Robinhood affect your credit score?
No, generally speaking, brokerages don’t report to credit bureaus and don’t affect your credit score UNLESS for some reason you end up owing them a significant amount of money and refuse to pay it.
Does Robinhood allow day-trading?
Yes, similar to other brokerages, Robinhood allows up to 3 day-trades per week if your account balance is below $25,000. If you have more than $25,000 in your account, you may day-trade as much as you want. This limitation applies to all brokerages and is required by law in order to protect new investors.
How do I set up recurring investments on Robinhood?
If there’s a particular company you want to support, you can automatically invest in their stock on a daily, weekly, bi-weekly, or monthly schedule by setting up recurring investments.
To do that, just tap on the company you want to invest in, and scroll down a little bit until you see the “Recurring Investments” section.
Tap on the button that says “Set Up [Ticker Symbol] Recurring, as shown in the screenshot below.
After that, you just select how much you want to invest, and pick a schedule that fits your goals!
Thank you for reading our Robinhood investing app review!
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