Robinhood App Review (How Do They Make Money?)



Review of the Robinhood app, which allows you to trade stocks and invest with no commission fees. Free trading? How do they make money? Subscribe to the Peter Leeds penny stocks channel, for lots of great videos: https://www.youtube.com/user/PeterLeedsPennyStock Overall, the Robinhood free trading app is pretty slick, and gives you the absolute bear bones so that you can buy and sell stocks commission free. There is no minimum balance requirement to open an account, and you can buy a single share of a stock. The Robinhood app also does not allow you to trade any and all stocks. For example, they have about 5,000 investments on their list which the app allows you to buy and sell, but you can not trade OTC and pink sheet penny stocks... yet. The Robinhood app makes money by: 1. getting the interest on any cash held by the Robinhood company 2. charging interest on any money loaned by Robinhood, to the users of the app. While it is not established yet, the company plans on offering margin investing soon. The app seems pretty good, but Peter cautions investors to wait until the Robinhood company works out all the early bugs and problems. . Get More From Peter Leeds: YouTube: https://www.youtube.com/user/PeterLeedsPennyStock HOME = https://www.peterleeds.com/ .... Facebook = http://bit.ly/1t4Tifo Twitter = https://twitter.com/peter_leeds Penny Stocks for Dummies = http://amzn.to/1WyGaLo ... E-Mail: Questions@PeterLeeds.com Phone: 1.866.695.3337 .

Comments

  1. Spot on, Peter. I subscribed to your newsletter in February and, at the same time, found Robinhood to facilitate my trades. Yes, bare bones but it's worth being commission free. Simple to use Ihave yet to find any issues with the app. Highly recommended if all you need is a trading platform. You can always get your technical and fundamental needs fulfilled by the many free solutions on the Internet. Keep up with all the good info; extremely helpful!
  2. how much interest is robinhood charging for money sitting in an account???
  3. robinhood is trash
  4. hope they allow for blue chips right?
  5. I would like to use it to buy X amount of stocks per month, dollar cost average, to build a dividend portfolio without incurring too many fees for buying. Sounds like it would be good for that huh? been seeing 'Stash' commercials on YouTube also, sounds similar. thanks.
  6. Just started using Robinhood in Dec 2016.  It has limitations, but I love it.  Very easy to use, especially to purchase a stock to hold for longer term.  You can buy one share or many more for no commission. All buys are market orders.  You cannot do limit buys.   Usually get the stock at listed price, but may vary a little because the prices go up and down throughout  the day. The buy is immediate. You get it for the price it is at the time you make the buy.  You can set alerts for 5 or 10 percent price changes on your positions or watch list.  You also cannot do automatic stop loss orders. Set your alerts, then act on them when necessary. You won't find OTC stocks on robinhood.   I use ETrade to buy OTC stocks, and since I have ETrade account, I can use it to get more information for stocks to buy on Robinhood.  They have also upgraded RH so do more complicated buying such as a margin account, but I have not and probably will not use that.
  7. It's actually doesn't work in Canada :(
  8. Thank you for putting out these videos, Peter! Very helpful. I have been using Robin Hood App for almost 2 months now, and it is bare bones but i think it is great for new investors and people who dont trade often. They will limit your number of intraday trades, and when you exceed that, you will be blocked from selling shares so this is not good for day trading. They also hold your money for about a week before it gets transferred to your bank, (you mentioned this is how they make $ with no commission) so don't expect to be able to cash out right away. Using this app for long term investments seems better than swing trading. I haven't traded anything on margin through Robin Hood. It's appeal lies in the extremely basic UI and the fact you don't need a minimum investment, and of course, no commission.
  9. I agree on a lot of your points, but it has improved so much, but i'm pretty sure you already know that. i've been practicing to trade with it.
  10. just opened a account today, I still have a question,
    as long as I buy a number of stocks per month I don't get charged???
    I I'm misunderstanding a comment down below.
  11. When I signed up today, in their agreements I read about a 5% "collar" that they add on.
    Then I watched a video of a guy who bought some stock; he bought $1.20 worth. When he swiped up to confirm, it said the total cost was $1.26, which is 5% higher. (the guy in the video said, "oh look, the stock went up in the time it took to buy it, I just made...")
    I don't think that was the case. I think that was the 5% difference. I've heard nobody mention this 5% "collar" that is mentioned in the agreement forms. Do you have any insight into this? Thanks for any info.
  12. While Robinhood instant does allow margin trading, it will not allow you to borrow more money than you actually have
  13. been doing it for 3 months i do have the robinhood instant so i dont have to wait for money after i sell stock ive made a 30% increase in my portfolio they do limit you some times your not allowed to use full buying power (money) since its held for sometime but thats fine i do believe they charge 0.02% trade fee when you sell a stock and they do same some out of your profit because of government regulation (brokerage fees etc) overall i think the app is great especially for a beginner to understand how trading works they are still getting it together but only time will tell if they are really onto something
  14. When I tried to buy a particular stock I got the message saying that stock is not available for trading so I wrote them and here is what they said: This stock is domiciled in Israel. As such, we do not support this security. There are certain foreign domiciled companies listed on U.S. exchanges, that when traded, may incur foreign financial transaction fees. In order to protect users from unexpected fees, we do not allow these securities to be traded at this time. Please note that some foreign domiciled securities are tradable on Robinhood. These may include the securities of companies domiciled in Canada and Israel that trade above $5.
  15. i assume they make money on account interest and charging people who trade on margin...
  16. I've had the app for a few days now. What do you think would be a good and cheap investment that is in the app?
  17. I've been using the Robinhood app for a few months and I love it. After inviting two people to join in I've been upgraded to premium account for free therefore I don't have to wait for three days to access my funds after I sell the stocks. Very easy to use and clutter free; perfect for a beginner like me.
  18. Hi so there is no minimum deposit and I can trade as much as I want per weak ?!
  19. Thanks for always keeping us informed, Peter! Definitely will check this out!


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Duration: 7m 37s

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