The company Robinhood is a brokerage firm with the main goal of democratizing finance. It develops products that allow anyone interested to start investing at their own pace and on favorable terms.
It is known that Robinhood started operating in 2013. To access the company’s services, you can download the mobile application with the same name. In 2017, the official website was launched.
The founders of the company are classmates named Baiju and Vlad. They started their careers in the financial sector after university and decided to create a brokerage company that would be accessible to everyone.
Robinhood holds licenses from U.S. regulators such as the Financial Industry Regulatory Authority, Securities and Exchange Commission, and Securities Investor Protection Corporation.
Features of trading conditions on Robinhood:
- Only traders from the U.S. can use the service for online trading. Residents of Europe have access to education and a demo account.
- It is only possible to buy stocks; call options and put options are available only for certain assets.
- Cryptocurrencies can be used as instruments, such as Bitcoin, Ethereum, Dogecoin, Litecoin, Bitcoin Cash, and Ripple.
- Short positions, debt securities, loans, and mutual funds are not available on Robinhood.
- Automated strategies are available.
- The minimum portfolio balance is $2,000; there are no minimum accounts.
- Profits can be withdrawn to deposit accounts of partner banks without commissions.
Analytics and most technical tools on Robinhood are provided for an additional fee. The platform offers affiliate programs, bonuses for user referrals, and educational materials available for free.
To start trading, you need to create an account on the website, fill out the corresponding form, and follow the instructions to confirm your email. Account funding and withdrawals are available through online wallets and debit cards, with no commissions for withdrawals on robinhood.com.
Robinhood positions itself as a reliable broker offering favorable investment conditions, education, and developmental tools. However, before investing money, it is recommended to read reviews and feedback from experienced investors about the company.
Robinhood’s lack of transparency and consistent technical issues have undermined my trust and confidence in their ability to effectively manage my investments.
Robinhood offers commission-free trading which is great for beginners, but it lacks the comprehensive research tools and resources that more experienced investors may require.