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Robinhood App Review - The Robinhood App For Beginners Guide - YouTube
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- Today, we're going over the
Robinhood Stock Trading App.
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A commission-free stock trading app,
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that's easy to use
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for both new investors and
experienced stock traders.
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We'll be going over all its features,
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breaking down its pros and cons,
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and really discussing
what type of investor,
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the Robinhood App is most ideal for.
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(heavy beat music)
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Hey, welcome back everyone,
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this is Erik of Everyday Investing.
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And on this channel,
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I'm all about helping
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the everyday investor get started saving
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and investing to reach
their financial goals.
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So if you are new to this channel today,
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definitely consider subscribing,
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and hitting that bell
notification down below,
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so you don't miss any future
videos on more investing,
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and personal finance topics.
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Today we are going over the
Robinhood Investing App,
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and we're going to discuss
my experience with the app,
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and what you can expect with
it's packed in features,
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whether you're a new investor
or an experienced trader.
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Now before we jump into today's
review of the Robinhood App,
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I do want to briefly mention that,
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if you're new to the Robinhood App,
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and would like to learn more
about it after the video,
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definitely feel free to check
out my full in depth review
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on my blog @everydayinvesting.com,
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I really break down the
Robinhood App fully in depth,
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to help you decide if it's the
right investing app to you,
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and also compare it to some
other alternatives as well.
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So what exactly is the Robinhood
Stock Trading App guys?
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Well, the Robinhood Stock Trading App,
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is a commission-free stock trading app,
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and it's just what it
says, it's commission-free.
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So that means there are
zero fees to buy stocks,
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there are zero fees to sell any stocks,
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and Robinhood basically allows
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you to invest in thousands
of stocks and ETFs,
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and ETFs basically mean
"Exchange Traded Funds,"
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which are a basket of related
stocks grouped together.
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You can invest in thousands
of ETFs or single stocks,
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on Robinhood for zero
cost, zero commissions,
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there's also zero monthly
account maintenance fees as well.
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I also want to mention guys
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that Robinhood is available on
both iOS and Android devices,
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and you can also access
it on the web as well.
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Now this is definitely
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an advantage over many
traditional brokerages,
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such as E-Trade or TD Ameritrade
or Fidelity for example,
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because those traditional brokerages,
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charge anywhere from five to $7 per trade,
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that is five to $7 every time
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you want to buy or sell some stocks.
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With Robinhood, you don't
have those commissions
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to eat away your profits,
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especially if you're a newer investor
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or a newer stock trader,
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saving on those commissions really
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is a definite advantage in your favor.
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Now I do think it's worth mentioning
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that well, Robinhood does save
you largely on commissions,
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they do lack a bit
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when it comes to research
and data packed into the app.
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Many of those larger traditional
brokerages I mentioned,
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such as E-Trade and TD Ameritrade,
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they do charge the commissions,
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but they pack in a lot more
data analysis and research,
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for you to make more educated trades.
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Now with Robinhood,
it's a very simple app,
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it's easy to use, and in
that simplicity though,
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it does lack research.
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So for example,
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this is the homepage
dashboard of Robinhood here,
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it'll show you your portfolio
value at the current moment,
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right now the value
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of the portfolio is changing in real time,
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because the stock market is open
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at the time that I'm filming this video,
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so you will see the portfolio
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on Robinhood, the value
fluctuating in real time.
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Now on the homepage here,
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it will show you a live tracker
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of your investment portfolio on Robinhood,
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it'll show you your
performance over the past day,
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as well as over the past
week, over the past month,
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over the past three
months, over the past year,
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and of course all time on the
very end as there as well.
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So you really, it does
break it down there for you,
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but it's very simple.
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Now, just the same if
you click on any stock
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that you own, or that you are watching,
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because you can also watch
stocks and Robinhood,
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let's say for example, you
want to click on Amazon,
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this will be the same for any
stuff you want to look at,
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it'll show you the stock's current price,
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its current performance over the past day,
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over the past week, over the past month,
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over the past three
months, over the past year,
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and over the past five years.
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And really all you get are
simple line charts here,
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which breakdown the
performance of the stock,
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or you also get simple candle charts,
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which are very simple as well.
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So the charts are really
not that advanced,
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they're very basic.
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Now for most longterm investors,
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if you're a longterm investor,
this is not a problem at all,
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because you're buying these
stocks or ETFs commission-free,
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and you're holding onto
them for longterm growth,
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especially if you're
buying dividend stocks,
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or any stocks that you want to
hold on to for the longterm,
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you really don't need to worry
about the lack of charts,
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and data packed into Robinhood.
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But if you're an active stock trader,
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the lack of charts and data and Robinhood,
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might be a bit of a hindrance for you.
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You may want to consider
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an app like the Webull App, for example,
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which is also a commission-free
stock trading app,
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wherever it does packing
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a lot more free research data and charts.
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Now further on beneath that,
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you will see for every stock in Robinhood,
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it'll show you
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how many shares you
currently own of that stock,
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the current value of
that stock, as well as
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how much the percentage it
makes in your portfolio.
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It'll show you your return
for that stock today,
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as well as your total
return for that stock,
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since you've owned it.
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Beneath that, you'll see some
brief statistics on the stock,
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as well as some recent news as well,
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they upload news every
day for every stock,
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from major places, such as CNBC,
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Washington Post, et
cetera, places like that.
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And lastly, you will see
some analyst ratings,
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it'll give you some idea,
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of what the analysts are saying
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in terms of buying, holding,
or selling the stock,
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and give you some more info,
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as well as some quarterly
earning information.
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So that's just one example
of a stock in Robinhood,
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but you can literally invest or trade
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in thousands of stocks and
ETFs on the Robinhood App.
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Now, if you want to search
for a particular stock,
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you simply click
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that search button right
there in the middle,
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and it'll also show you
popular collections,
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such as the hundred most
popular stocks here.
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It'll show you what people are trading
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and investing in right now.
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But if you want to buy a particular stock,
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you can search for it as well.
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So you want to invest in Starbucks,
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you can go to the search button,
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click in, type in Starbucks,
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and boom it'll take
you right to Starbucks,
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you can see the current price
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and performance of Starbucks as well,
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and if you want to add
this to your watch list
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to buy at a later time,
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simply click that plus button right there,
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and now you're now watching Starbucks,
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you'll keep track of its
performance over time.
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Now if you want to buy an
actual stock in Robinhood,
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I do have a more in depth video
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going over the different
order types in Robinhood,
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on both how to buy
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and how to sell stocks,
ETFs, in Robinhood.
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I'll link up those videos up on top,
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if you want to learn more
about how to do that.
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But just to give you a
brief overview on Robinhood,
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if you want to buy any particular stock,
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you simply open it up,
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click the buy button there
on the bottom, right?
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You'll then have the option to choose
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how many shares you want
to buy of that stock,
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as well as choose
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from various different
advanced order types.
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Now Robinhood does offer
different order types,
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such as market orders, limit orders,
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stop loss orders and stop limit orders.
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And again, the order types
video I did on Robinhood,
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order types does go more
in depth on each of those,
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for both buying and selling,
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so be sure to check out those videos,
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if you want to learn more and
how to do either of those.
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But let's back up out of there now,
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there just to give you a brief overview
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on buying and selling on Robinhood.
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Now if you're a new investor,
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you may just want to use market order,
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that simply means you buy
or sell at the current price
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that that stock is priced at.
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Whereas the limit order
is a little more advanced,
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but essentially a limit order
basically locks in and buys,
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or sells at the price that
you want to buy or sell it.
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Now one thing I particularly
like about limit orders
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is that it lets you automate your trades,
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so you don't have to be by your phone,
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constantly watching your phone
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to see when's the right
time to buy or sell it.
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You can have it Robinhood
automated for you,
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buy and sell for you,
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on your behalf at your
desired price points.
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Another feature with the Robinhood App
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is they do offer extended hours trading,
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and it is completely free.
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So you can trade on Robinhood,
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both before and after
the stock market closes,
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for some extended trading hours.
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Now they do say here that,
their pre-market trading hours,
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the market opens 30 minute,
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Robinhood's trading opens up 30 minutes,
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before the stock market opens,
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and Robinhood's after hours trading,
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they are open two hours after
the stock market closes.
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So you do have an extra
two and a half hours a day,
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to trade in Robinhood,
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that you wouldn't have
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on many other traditional
investment brokerages.
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Now another feature worth
mentioning on the Robinhood App
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is actually called a Robinhood Crypto.
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So Robinhood now actually,
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allows you to trade cryptocurrency,
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just the same, commission-free
as you can trade stocks.
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So if you go to your main
homepage of Robinhood here,
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so for example, you can
click on Bitcoin here,
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and just the same as stocks,
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it'll show you the
current price of Bitcoin,
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and you can choose to buy or sell as well,
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again you can choose various
different order types,
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actually either a market
order or limit order,
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and I have a more in depth
video on Robin and Crypto,
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I'll link to a video up above,
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if you want to learn
more on Robin and Crypto.
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But essentially it allows
you to buy and sell,
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Bitcoin, Litecoin, Ethereum,
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and a couple of other
cryptocurrencies commission-free.
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Now one cool thing I like
about cryptocurrency,
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is that the market never closes,
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you can trade Bitcoin
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and other cryptocurrencies
on Robinhood, 24/7,
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again commissioned free,
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and there are no ending
to the trading hours.
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You can literally trade 24/7, 365.
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Another feature Robinhood offers
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is actually called Robinhood Options,
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now this is options trading.
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This is a more advanced type of trading
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that allows you to go long
and stocks you believe in,
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and short stocks that
you don't believe in.
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Now I personally myself
don't use options trading,
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but if you are an options trader,
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it is free to use on Robinhood,
again commissioned free,
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just like regular stock trading.
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But essentially you can sign
up inside the Robinhood App,
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and basically short stocks
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which can not do without options trading.
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But again, that is something
for more advanced traders,
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I probably wouldn't recommend
it for newer investors
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because it can be a
little more overwhelming.
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So again I know you may be wondering,
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are there any fees to
use Robinhood at all?
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And again guys, the answer is no,
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there are no commissions,
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there are no monthly maintenance fees,
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Robinhood is a completely free app.
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Now they do have
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an upgraded account option
called Robinhood Gold,
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which is $5 a month and
again, this is optional,
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if you want an upgrade for
some upgraded features.
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Now the features you
get with Robinhood Gold,
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they give you more advanced research,
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they give you access to
bigger instant deposits,
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and the next thing they offer
is access to margin trading.
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Margin trading essentially means that
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you are investing with borrowed money,
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you're trading with borrowed money
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that you're borrowing from Robinhood.
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So I wouldn't recommend margin trading
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for new investors or for new traders,
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if you're an advanced trader
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and you have experience
with margin trading,
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you may want to consider
this Robinhood Gold,
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but that essentially means
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you're trading with borrowed money.
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I personally myself
don't use margin trading,
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because it does have some risk involved,
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because you're using again,
borrowed money that's not yours.
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All right guys, so now I
want to briefly go over
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who I would recommend
the Robinhood app for,
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versus who I would not recommend it for.
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This is basically
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the pros and cons of
Robinhood part of the video,
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to help you decide,
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if it's the right
investing option for you.
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So the first pro for the Robinhood App is,
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I think it's definitely
ideal for new traders.
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The reason is, there are
zero commissions to trade,
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so if you're just getting
into stock trading,
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this is great because
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you won't have commissions
eating away at your profits.
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You'll also notice
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that the Robinhood App does
have a very clean interface,
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it's very easy to use whether
you have iOS or Android,
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everything's simple.
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And if everything is easy to navigate,
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it's a very user friendly app.
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The second pro with the
Robinhood App is I would say
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that it is another good option
for even experienced traders,
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who want to save on commissions.
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So even if you're an experienced trader,
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who's used traditional brokerages,
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such as E-Trade or Fidelity,
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you may want to consider
the Robinhood App,
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simply to save on commission.
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So you don't have to have five to $7
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eat away at your
commissions per every trade,
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that's definitely another
pro for Robinhood.
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And the third pro I would
say for the Robinhood App,
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is it does allow you to
invest in cryptocurrency.
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Again, many traditional brokerages
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don't allow you to
invest in cryptocurrency,
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you often have to sign up
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for a cryptocurrency
exchange such as Coinbase.
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Now Robinhood does allow you to trade,
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buy and sell a couple
cryptocurrencies, not all,
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but a couple of the
main ones on Robinhood,
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on their platform
through Robinhood Crypto.
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So if you're looking to
trade cryptocurrency,
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in addition to stocks,
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the Robinhood App gives
you a lot of value,
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in both of those regards.
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Now let's discuss the
cons of the Robinhood App.
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The first con with the
Robinhood App is I would say,
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it's not as ideal for those
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who are more into passive
investing and longterm investing.
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The Robinhood App is more
designed for active stock trading.
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Now don't get me wrong,
you can buy and hold,
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you can invest in stocks,
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and buy and hold them
on the Robinhood App,
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and just hold them for
the longterm as well.
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But most of the features
inside the Robinhood App,
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are geared towards active stock trading,
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with their buy and sell
features, zero commissions,
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and the features of Robinhood Gold,
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if you want to upgrade,
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a lot of those features,
extended hours trading,
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a lot of those features
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are geared towards active stock traders.
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If you're a longterm investor
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looking to buy and hold
investments, invest more passively,
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then you may not, you may,
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this may not be the ideal option for you,
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because again, it is more
ideal for active stock traders.
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If you're looking to be
more of a longterm investor
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and get started with that,
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you may want to consider an app instead,
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like the M1 Finance App, or
the Acorns Investing App,
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those are more geared
towards longterm investing.
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And the second con with
Robinhood App is I would say,
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it's not as ideal
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for completely new investors
to the stock market.
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Now don't get me wrong,
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the Robinhood App is a
very user friendly app,
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and it's very clean and simple,
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but it's more geared
towards stock trading.
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If you're just getting into investing,
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you may want to look to,
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into something that's a
little less overwhelming,
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such as the Acorns App,
or the M1 Finance App,
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those apps are investing apps,
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they give you less investment options,
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but they give you more
diversified portfolios,
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which is a little easier
to start off with,
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if you're just getting into investing.
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And the third con with a Robinhood App is,
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if you're actually an
advanced stock trader,
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the lack of research built
into their free account,
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may not be enough for you.
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If you're an advanced stock trader,
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you might want to consider
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an app like the Webull Stock Trading App,
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which is a commission-free
stock trading app,
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just like Robinhood, but it has tons
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of more data research
and analysis packed in.
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Now again like I said,
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if you're more of a longterm investor,
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the lack of data on Robinhood
will not make a difference.
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But if you're an active stock trader,
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that is something to consider.
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So if you've made it to
the end of the video,
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and you still aren't sure
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if the Robinhood Investing
App is the right app for you,
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I encourage you to check
out my full in depth review
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on my blog at EverydayInvesting.com,
[820]
I go full in depth on the Robinhood App,
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really help you decide
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if it's the right
investment platform for you.
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Again guys, if you enjoyed today's video,
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or found that helpful,
I'd really appreciate it,
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I'd like, leave me a comment down below,
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have any questions,
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I'm always happy to answer
your questions for you guys.
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And if you'd like to learn more about
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how to use the Robinhood App,
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I do have a full playlist of
Robinhood tutorial videos,
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I'll put those videos right up there,
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which go more in depth
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on how to use different
areas of the Robinhood App.
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Anyways guys, I thank you,
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I appreciate you all for being a part
[846]
of the Everyday Investing Community.
[848]
Thank you for watching,
[849]
and I'll catch you all
in the next episode.
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