Searching for a reliable broker in the USA? Then you are in the right place. Robinhood is a US-based brokerage firm providing different kinds of customer services. In this Robinhood review, we’re going to cover up all the services of Robinhood along with its reliability and compatibility.
What is Robinhood?
Robinhood is a US-based discount broker established 7 years back. The company is regulated by top-tier US financial institutes like FINRA and SEC.
It cost-effectively provides services, making them affordable for people of any age and group. Robinhood has also introduced a cash management program that helps customers to earn on un-invested funds.
It is an excellent platform for new traders as it has an easy-to-understand user interface. It also provides the basics of investments in the stock market to make users think about their long-term financial goals.
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Account Opening :
Account opening is digital and straightforward. Unfortunately, Robinhood permits account opening for US residents only. It takes a day to verify your account. However, it is planning to extend its service in Europe and other continents as well.
Minimum Deposit: There is no minimum deposit for Robinhood instant account. But if you want to switch to a gold account, you have to deposit a min of $2000.
How to open Robinhood account :
- are 18 or older
- have a valid social security number
- have a legal US residential address
- are a US citizen, US permanent resident, or have a valid US visa
- Fill in your personal information (i.e., address, date of birth, and social security number)
- Answer short questions relating to your trading experience
- Verify your identity with your driver’s license/identity card/passport. A photo of the documents taken with your mobile will do.
Robinhood charges zero fees to trade in stocks, ETFs, options, and cryptos.
Deposit and withdrawal :
Deposits are free of cost. You can deposit only through bank transfer. For instant accounts, the deposition limit is $1000. For those who hold a gold account, the limit is extended to $50,000. Robinhood doesn’t charge anything for ACH withdrawal.
However, it charges $25 for domestic and $50 for international wire transfers. Withdrawal usually takes up to 3 days.
Stock transfer: You can transfer stock in your account for free, while sending stock from your account costs you $75 per transaction.
Robinhood Trading Platform :
Robinhood has 2 types of trading platforms: Web and mobile trading. Web trading platform is launched after mobile application.
It has safe, well-designed, and user-friendly trading platforms. Unfortunately, Robinhood does not have a desktop trading platform. Nor does it support third-party trading platforms; hence you have to choose between these two platforms only.
Robinhood Products Offered
Its product portfolio is limited. It only offers stocks, options, EFTs, and cryptos. Gives access to around 5000 stocks and ETFs. It offers 7 types of cryptos, and cryptos are available in 47 cities.
Only text format educational material is provided. No live videos, tutorials, and seminars. They don’t even provide a demo account for practice. All you can do is read the articles to gain some knowledge.
Robinhood provides good quality research tools. Charts are easy to interpret—real-time data in the news feed.
Experts provide ideas about market trends so that traders may get some clue about the investment. In addition, provide fundamental data related to the company.
|Free US stock and ETF trading||Weak customer support|
|Great mobile and web trading platforms||Few educational materials|
|Transparent fee structure||No IRA account offered|
|Cash management service||Depositing large amount at Robinhood gold takes longer time|
|Data on asset fundamentals||No demo account provided|
Customer Service :
24/7 service is not available. You can contact them only via email. However, you can write a short description of the issues you are facing. They’ll revert as soon as possible with an appropriate answer.
Bottom line :
The biggest positive point Robinhood has is that it charges no withdrawal or inactivity fees. In addition, the account opening is easy and fast.
It also has some drawbacks that products are limited to the US only. For example, customer support is weak and limited educational material.
But if you want to trade US stock for free, then Robinhood is the right platform for you.
Why can't I convert currencies in Robinhood?
If one of the currencies you select is not in effect for the date you request, you will see a message that the exchange rate data is not available.
The Values menu option allows you to see exchange rate trends, either as absolute exchange rates or as a relative change over time.
- The Rates option displays the actual exchange rate for a particular date.
- The % Change option displays the percent gain or loss in the value of the currency you want (the quote currency) against the currency you have (the base currency) since the start of the date range you are viewing.