Robinhood App - Free Trades Without a Catch?

[mr_mantel_216]

Anybody using this app yet? I just heard about it and I know better than to assume its free with no catch down the line lol...especially given its name. Their website: https://www.robinhood.com/

https://investorjunkie.com/38922/robinhood-app-review/

Right now, it appears Robinhood is targeting bread-and-butter stock trades only, with the eventual rollout of more advanced trades and security types. They do not yet support trading options, OTC securities, warrants, or mutual funds.

Robinhood’s trades are not self-clearing and use Apex for any trades made. Robinhood is registered with the SEC, a member of FINRA and has Securities Investor Protection Corporation (SIPC) insurance.

The founders of Robinhood have made a few rounds of the venture capital circuit (with currently $66 million in funding). They are funded by some well-known players in the industry such as Index Ventures, Ribbit Capital, Google Ventures, and Andreessen Horowitz.

Features

• Available Accounts – Individual accounts only.
• Trade For Free – Buy or sell a stock at no cost.
• No Minimum Deposit – You can start trading with a few dollars.
• Mobile App Access – Make trades via an Apple iPhone or Apple Watch. Android app is now available (New).
• Scheduled Deposits (New) – Automatically you can schedule transfers on a weekly, biweekly, monthly, or quarterly basis.
• Advanced Order Support (New) – Robinhood supports market orders, limit orders, stop limit orders, and stop orders. Certain orders may be entered as good for the day or good till canceled (GTC).

How Does Robinhood Make Money?
The primary question remains how will Robinhood make money if trades are zero? In their FAQ they state they will make money through margin lending interest, and interest on any uninvested customer cash deposits.

According to some sources, the margin interest rate will be 3.5% once it is offered. This margin rate is much lower than other leading brokerage firms. Also according to their FAQ they will not make money via PFOF (Payment For Order Flow). Though they could make this a source of revenue in the future.

Pros

• Free Trades - Zero, zip, nada, naught, zilch for any trade
• Easy to Use - The service was easy to signup and use when making trades

Cons

• Stock and ETF trading only - You currently cannot trade options, OTC securities, warrants, or mutual funds.
• No retirement accounts - Currently only individual taxable accounts are available. Joint or custodial accounts aren't available either.
• No ACAT transfers - Currently there is no way to transfer existing brokerage assets into Robinhood.

https://investorjunkie.com/38922/robinhood-app-review/

My "spider senses" are going off the hinges lol... Opinions, comments and reviews please.

 

[Cle Da YoungKingPin]

just signed up where the hell do i find information to allow me to make sound decisions?

 

[mr_mantel_216]

Seems the day trading heads are all but gone from the board. Was hoping one of them would look into it and give the low down. I'm new to this and have yet to make the leap into it. Hopefully someone drops some knowledge in here soon.

 

[Diomedes3000]

You might have more luck posting it on the main board. Their are some day trader folks still on the board not to many people come to the business board, except for some serious folk or people just looking around.

 

[playahaitian]

thanks OP

I have been REAL curious about this for awhile but couldn't really understand it fully

Hoping BGOL Financial would have cracked the code by now.

 

[mr_mantel_216]

You might have more luck posting it on the main board. Their are some day trader folks still on the board not to many people come to the business board, except for some serious folk or people just looking around.

Its the opinion of the serious folk that we want so I'll leave it here for a while

My opinion on most start-ups is to wait-and-see how they do in their first year of commercialization.

 

[mr_mantel_216]

You might have more luck posting it on the main board. Their are some day trader folks still on the board not to many people come to the business board, except for some serious folk or people just looking around.

Its the opinion of the serious folk that we want so I'll leave it here for a while

My opinion on most start-ups is to wait-and-see how they do in their first year of commercialization.

thanks OP

I have been REAL curious about this for awhile but couldn't really understand it fully

Hoping BGOL Financial would have cracked the code by now.

 

[unbeleve]

Robinhood is legit.

 

[mr_mantel_216]

Robinhood is legit.

Thanks for the feedback fam!

 

[playahaitian]

Robinhood is legit.

 

[MisterT]

Why you wanna bother with this?
Trades don't cost that much and unless you're unwise enough to day trade (at all) or swing trade (with money you can't afford to lose) you wont be making purchases very often anyway. I use Capital One 360 and I can trade for $6.95 per trade. Plus I have my entire financial life on one page. You can integrate multiple stock accounts with your savings and checking accounts plus have control of your 401K, any bonds you own, an account with ANOTHER different bank, a ROTH, Keogh, your credit card (Cap 1 sponsored) all on one page! Swap money between accounts. No minimum balance to open. You can trade in all the major markets, some international and even pink sheets. Limits, stops, put and call options, custodial accounts, practically all mutual funds and index funds can be traded and managed from your main page. Online and person to person phone help, scheduled transfers, puchases and sells, and a company that is trusted and established. What more do you want?

 

[playahaitian]

Why you wanna bother with this?
Trades don't cost that much and unless you're unwise enough to day trade (at all) or swing trade (with money you can't afford to lose) you wont be making purchases very often anyway. I use Capital One 360 and I can trade for $6.95 per trade. Plus I have my entire financial life on one page. You can integrate multiple stock accounts with your savings and checking accounts plus have control of your 401K, any bonds you own, an account with ANOTHER different bank, a ROTH, Keogh, your credit card (Cap 1 sponsored) all on one page! Swap money between accounts. No minimum balance to open. You can trade in all the major markets, some international and even pink sheets. Limits, stops, put and call options, custodial accounts, practically all mutual funds and index funds can be traded and managed from your main page. Online and person to person phone help, scheduled transfers, puchases and sells, and a company that is trusted and established. What more do you want?

gotta check this out

 

[playahaitian]

Why you wanna bother with this?
Trades don't cost that much and unless you're unwise enough to day trade (at all) or swing trade (with money you can't afford to lose) you wont be making purchases very often anyway. I use Capital One 360 and I can trade for $6.95 per trade. Plus I have my entire financial life on one page. You can integrate multiple stock accounts with your savings and checking accounts plus have control of your 401K, any bonds you own, an account with ANOTHER different bank, a ROTH, Keogh, your credit card (Cap 1 sponsored) all on one page! Swap money between accounts. No minimum balance to open. You can trade in all the major markets, some international and even pink sheets. Limits, stops, put and call options, custodial accounts, practically all mutual funds and index funds can be traded and managed from your main page. Online and person to person phone help, scheduled transfers, puchases and sells, and a company that is trusted and established. What more do you want?

Wanted your thoughts on schwab stock slices?

Especially for a pre teen just starting out?

 

[MisterT]

Wanted your thoughts on schwab stock slices?

Especially for a pre teen just starting out?

+I dunno. Unless you're buying some crazy priced shit like Berkshire Hathaway (who BTW have there own version of stock slices) I'm not sure the reason. For a preteen I'd stick with penny stock to a big degree and let the child have some fun and do some selections of their favorite companies and products. But I'm no authority... I cashed out a couple years back, left the country and have no self managed investments anymore. Glad I dont cause it's scary out there right now. Whoever guesses right gets rich, possibly, but folks will lose their asses too.

 

[theteacher]

Yeah.
I fucks with Robinhood.
Easy to use app.​