About fourteen days ago, I downloaded a lovely new trading application called Robinhood and figured I would share my initial review with you today. We have wanted to trade stocks for the longest time, yet the expenses that accompany trading or going to an agent always held me up. If you are like me and you do not have a lot of money to trade, these expenses can eat into your profits. Robinhood enticed me to sign up because of the fact that the application is free yet in addition because a promotion allowed me to get a free stock with registering.
Is Robinhood worth downloading?
It is been a long while since I’ve been excited about making any kind of money online. The Internet has gotten so excessively saturated in almost every market and many companies are looking to sucker you in so they can make a quick profit, while you do not make anything. Robinhood is not that company.
Upon signing up for the application, you attach robinhood short selling straight to your bank account. I ended up getting a let loose share in Fit Bit and ultimately ended selling that stock. Robinhood notes there is a 1 in 1000 chance that you will pick up a big named stock like Apple. From the first stock I coexisted with 4 that I’ve presently gotten for referrals, the best stock I received was valued at $10. Nothing big, however free money is free money. You do have to clutch the stocks for 3 trading days before you can trade or sell your stock.
How does Robinhood make their money?
Much like a bank, Robinhood makes money (and is able to give out free stock) because they gather interest on money that you put into your account. As long as their customer acquisition costs are under their profits from interest, Robinhood will be a profitable business. Seeing that a few clients have more than $100,000 in their account, you can easily see why Robinhood is able to offer free trades.
That does not mean it is ideal.
Day trading is something that you are not able to do except if you have more than $25,000 in your account. I think you can get up to 3 or 4 day trades in a 5 business day period, or you could be labeled as a pattern trader. That said Robinhood can be utilized for swing trading and long term investments.
What about the interface?
The Robinhood interface is basic and bare bones. Although I have not had the opportunity to dive into the Gold Membership, this is what I will say:
We do not recommend using Robinhood to decide when you are going to purchase and sell a stock. Instead, compliment the Robinhood Application by using Market Watch and Barchart to get the information you need before trading.