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ROBINHOOD REVIEW 馃搱 100% Free Stock Trading, Worth It? - YouTube
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how's it going today guys I hope you're
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having a fantastic day so in this video
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here we're going to be doing an in-depth
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review of the Robin Hood app and if you
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guys are curious about different
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investing platforms out there and you're
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doing your research I've linked up down
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in the description below all the
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different review videos I have done so
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far on this channel so I do encourage
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you to shop around look at the different
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options out there and really consider
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the features and benefits of each
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investing platform and then figuring out
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which one really best suits your needs
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now Robin Hood captures a lot of
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attention because it is completely free
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$0 Commission zero dollar minimum
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account balance so you could literally
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open up an account fund it with ten
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dollars and start investing in stocks so
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there's a lot of appeal to this but what
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I really want to make sure you guys
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understand is that it is a very limited
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platform and that's kind of what we're
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gonna get into here is the pros and the
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cons of this platform why I like this
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platform and also why I'm not such a fan
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of this platform at the same time now
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like I do with all of my reviews I do
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have a pin comment down below with a
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timestamp for the different sections so
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if you guys are looking to skip ahead in
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this review that is a pin comment down
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below where you can jump ahead to a
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separate section but first of all let's
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talk about what Robin Hood actually is
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Robin Hood is a free trading app out
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there that has really ballooned in
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popularity it allows you to invest in
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stocks ETFs as well as crypto currencies
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and options now the cryptocurrency piece
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is still limited to certain states in
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the United States so if you are looking
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to invest in cryptocurrency through
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Robin Hood you're going to want to make
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sure it is currently available in your
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state beyond that Robin Hood is a very
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basic investment platform it is a 100%
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online platform meaning there are no
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physical storefront locations so I'm
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sure you guys have seen the Charles
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Schwab or fidelity locations around
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where you can go to a branch office or
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you can call someone up on the phone
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with Robin Hood it is completely
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electronic and online and so this right
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here might be a con for some people the
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fact that you can't call someone up on
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the phone or you can't stop into a
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branch location to talk to someone and
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but the really the difference here is
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the fact that you're not paying anything
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with the traditional online discount
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brokers you're paying a fee for
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Commission and they have a minimum
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account balance that is more or less
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what Robin Hood eliminated but by
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eliminating that fee structure they are
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not able to offer you know the personal
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attention that you might get through
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your other brokerage account where you
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can call someone on the phone or stop
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into a branch location so what can you
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invest in using the Robin Hood app first
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of all you can invest in publicly traded
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stocks or ETFs on the New York Stock
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Exchange or the Nasdaq so right off the
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bat that tells you that you cannot
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invest in penny stocks you can't invest
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in foreign stocks unless they trade
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through a DRS and you can't invest in
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stocks on the over-the-counter exchanges
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you can also invest in cryptocurrency
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through the Robin Hood app if it's
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available in your state and currently
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this includes Bitcoin Bitcoin cash
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dogecoin ethereum ethereum classic and
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litecoin and Robin Hood also now allows
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you to buy and sell options free of
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charge
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so what this means is that there are no
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mutual funds available on Robin Hood and
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there are no penny stocks or
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over-the-counter stocks moving on now
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what are the fees associated with a
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Robin Hood account and what are the
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requirements well the only requirements
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is that you do have to be a u.s.
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investor 18 and up but beyond that there
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are no fees associate with Robin Hood it
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is completely free no minimum account
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balance and no Commission cost for
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trading and you might be asking yourself
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well how does Robin Hood make money what
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they do is they offer a feature called
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Robin Hood gold where you are offered
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margin you can buy stocks on margin and
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you can also have after hours or
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extended hours trading and you also have
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the availability to have instant
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settlement with your funds rather than
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waiting for funds settlement when you
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are selling your position typically you
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would have to wait for those funds to
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settle to withdraw them or to reinvest
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them but Robin Hood can offer that
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instant settlement with their Gold
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Package so that is how Robin Hood is
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actually making money okay so what are
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the pros of this platform there are
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pretty much two of them that I see first
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of all it's 100% free which really
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lowers the barriers to entry to get
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started with investing traditionally if
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you wanted to open an investing account
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it might be a $500 or $1000 minimum
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balance but with Robin Hood
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zero dollars you can get started with
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pretty much nothing
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the second Pro for them is the fact that
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it has a very simple interface pretty
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much anybody can jump on there get
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started and understand what it is they
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are doing but that in and of itself is
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also a con because the platform is
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extremely basic and for any investor out
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there that's really doing a lot of
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research you're going to be extremely
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limited by this platform so that right
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there is the first con I see for Robin
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Hood that platform is extremely basic
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and I have used Robin Hood before I
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still have some investments with Robin
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Hood but what I would find is I was
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doing all of my investment research on
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other platforms or other websites and I
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was only using Robin Hood to buy and
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sell my shares and I really would rather
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have the ability to do that all in one
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place where I'm on an app that allows me
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to do research and learn about
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investments and then do my transactions
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as well another con for some is the fact
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that Robin Hood does not offer mutual
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funds so if you are looking to invest in
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mutual funds you are not going to be
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able to do that through Robin Hood now a
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big con is the fact that they do not
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offer retirement accounts and this right
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here is a huge problem in my opinion
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because you cannot open any type of
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retirement accounts you can't do the
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self-directed Roth IRA or a traditional
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IRA through Robin Hood and I think a lot
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of people don't understand the
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difference here between investing
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through a retirement account where you
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can be tax sheltered or investing
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through a traditional brokerage account
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where you're paying taxes and you're
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paying at the maximum rate in some cases
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so really educate yourself on investing
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through retirement accounts if you are a
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long term investor especially as a young
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person and understand the advantage of
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investing in being able to do so through
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a retirement account another con is that
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Robin Hood does not offer a trip or
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dividend reinvestment plan a lot of
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other brokerage accounts out there allow
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you to reinvest your dividends
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automatically and Robin Hood does not do
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this another kind is also the fact that
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you can only purchase whole shares of
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stock on Amazon so there are no
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fractional or partial shares available
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and one platform that does offer both of
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these things they offer a drip and they
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also offer fractional shares is m1
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finance this is also a completely free
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platform
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and I'm gonna link up the review to this
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as well if you guys are on the fence
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between Robin Hood and maybe something
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else I would highly recommend taking a
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look at em one finance because in my
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opinion that is a superior platform and
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everyone finance is my favorite
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investing platform out there for
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beginners who are not looking to pay for
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commissions when they are trading so
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that review is linked up down in the
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description below another con is that
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there are no pre-built portfolios with
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Robin Hood's so you can't really go on
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there and start investing in a portfolio
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that was built by somebody else they're
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putting all that power in your hands to
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decide what you're going to be investing
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in and you also really can't build a
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portfolio or automate that process at
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all you can't automate deposits into
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your account you can't automate
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investments really it's as basic as it
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gets here with this Robin Hood platform
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and that is the advantage is that some
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of these other platforms offer out there
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it's the fact that you can automate your
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contributions or automate your
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investments or automatically reinvest
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those dividends that are paid out by the
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stocks you're investing in and then the
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fourth con is that Robin Hood only
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offers the very basic order types if you
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are somebody who's looking for the more
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complex order types you're gonna want to
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look somewhere else but for the most
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part these order types are all you would
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need as a beginner so moving on who is
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Robin Hood for and who is it not for
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Robin Hood is a good platform for
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beginners who are looking for a very
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basic investment platform but like I
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said I would recommend doing your due
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diligence looking around at a couple of
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different platforms particularly m-1
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finance who is Robin Hood not for it is
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really not good for the
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research-oriented investor if you're
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looking for candlestick charts if you're
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looking for more information about
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companies if you're looking to do
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fundamental analysis you really can't do
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any of that here with the Robin Hood app
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you're going to have to do that on
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different platforms and you're probably
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going to be disappointed with that very
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basic platform but understand that is
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what Robin Hood was built for it was
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meant to be the most basic and simple
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investing platform out there and so I'm
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really not saying it's a bad platform it
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was just built to be very basic for
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beginners and if you're a little bit
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more advanced as far as investing goes
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then you're probably not going to be
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happy with Robin Hood but anyways guys
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that's going to wrap up this video that
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is my opinion of
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Robin Hood app let me know what you
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think down in the comment section below
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but thank you so much for watching this
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video and I will see you in the next one
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if you are interested in learning more
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about investing in the stock market I've
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created a free course just for you the
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link is in the description below here
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are a few other videos you might enjoy
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as well
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