If you want to invest in the stock market, then you need to check out the Robinhood App.
It’s a unique investment tool, letting you buy, sell, or trade stocks without any transaction fees. While most services (like E-Trade) charge $7 per order, Robinhood costs nothing.
Additionally, there’s no minimum required balance.
Most platforms demand an initial $500. But here, you can invest $50 or $5,000. There’s no penalty either way.
It’s a good, low-risk opportunity for buying stocks.
Over the course of this article, I’ll explain how Robinhood works, the advantages of using it, and my personal experiences with the system.
Enjoy!
Robinhood App Review
On hardcore trading forums, people criticize this app for its simplicity. It’s not as detailed or complex as a lot of the more expensive platforms.
Most of these complaints come from day traders and guys looking to “game the markets.”
That’s fine.
I use the Robinhood app differently. All my purchases are long-value.
As Charles Schwab once said:
It’s fun to play around… it’s human nature to try to select the right horse… (But) for the average person, I’m more of an indexer… The predictability is so high… For 10, 15, 20 years you’ll be in the 85th percentile of performance. Why would you screw it up?
Instead, I use the app’s monthly deposit option to buy a fixed number of stocks each month.
If I’ve had a particularly good month, I’ll throw something extra into my account. It’s smarter than blowing money on depreciating assets like a watch or car.
(Rather Than Spending Foolishly, I Bought 100+ Shares Of VYM)
While Robinhood doesn’t update to the nanosecond like some of the high-priced day trading systems, it’s a perfect platform for buying long-term assets (this is what most successful investors, like Warren Buffett and Benjamin Graham, recommend anyway).
Robinhood App Features
Now that I’ve explained how I use this platform, let’s look at what the app actually does and why it’s different from other investment services.
Below are a few of Robinhood’s advantages.
- No minimum investment – One of my biggest regrets in life is not understanding the power of non-tangible assets as a teenager. At 19 years old, I could have taken $100 a week from my paycheck, put $50 into stocks and $50 into BitCoin. Anyone who did that would be a multimillionaire now.
Even a stable but boring investment (like Coca-Cola) is better than nothing. $50 is pizza and a movie, or new video games. You’re not going to remember those in two years anyway.
A hundred shares of long-term stock generates passive income for life.
(Coca-Cola, By No Means A “Secret Investment,” Over The Past Five Years)
- No deposit limit – Unlike crypto coins, there’s no daily investment cap with the stock market. If you want to invest $100,000, you can. This is useful if you know an event will raise or lower stock prices (example: the U.S. Labor Department will issue a report next week, boosting the market). As such, there’s a lot of opportunity for buying a dip or capitalizing off a recession.
- No transaction fees – Spending $7 every time you want to buy stocks is expensive, especially if you’re investing small amounts. At that rate, buying one or two shares of something becomes almost pointless.
Robinhood’s lack of surcharges saves you tons of money in the long-run. Placing 10 orders on a site like E-Trade costs $70 in fees, with Robinhood you don’t pay anything extra. Even if you only execute one transaction a month, you still save $84 a year over E-Trade.
That’s an extra share or two of most well-preforming stocks.
Closing Thoughts
I really enjoy the Robinhood App. The lack of trading fees and no minimum balance requirements make it affordable to use. Whatever you put in is your to trade with, and you don’t have to worry about transaction costs eating away at your principle balance.
Plus, the service still comes with all the safety benefits of a more expensive platform. Your assets are still guarded by the SEC and SIPC, meaning that you’re protected for up to $500,000 in investments.
It’s all the benefits of a high-end trading platform, without the costs.
Lastly, if you sign up for the Robinhood app through the link below, you get a free stock. It’s random share (could be high-end like Apple, or a $5 stock like GoPro), that’s yours to hold or trade.
A good deal either way.
Join Through This Link And Get A Free Stock
P.S. Robinhood is adding a crypto marketplace later this year. It’ll be a nice way to trade BitCoin without huge transaction fees.