As we know, the advance in technology touched many different living aspects, including financial services. There are many apps out there that offer services in financial matters, such as the trading app Robinhood.
The popularity of this brokerage app hit more than 13 million users, with an average age of 31. Because the young generations find trading as the best shortcut to growing money. As long as you pay enough attention and understand the flow, you will get the best result, even with its high risk.
Why Many Drawn to Robinhood
The majority of people are interested in trading due to it offers quick income, compared to the other ways of investment. Not to mention, with the ease that the trading app Robinhood offers, people are willing to give it a try. Here are the reasons why people use this app:
● Robinhood is a simplified trading brokerage with a user-friendly approach. Thus, this attracts beginners to utilize it for trading purposes.
● The app offers trading options that will attract the youngster generation, such as stock, ETF, and cryptocurrency.
● You can become a trader for $1 only and start building your portfolio there.
● It is possible to buy stock shares by a fraction, such as a half or any other, if your money is less than the required price for one share.
● Robinhood claimed that they take no commission for each transaction.
● You have the chance to get free stock for up to $225 once you open an account and get more if you refer it to friends.
● The brokerage is good for cash management and also it has recurring investment tools feature for you to set up investments periodically.
The Negative Side of Robinhood
Although it attracts many users due to its easy-to-use interface, Robinhood still receives a low rating. From 5 stars, the app is only able to secure less than three stars. Hence, we think here are the reasons:
● If you are not subscribed to Robinhood Gold, then you will get lost in the app. Because there are only a few sources to back up your investment gig. To secure more than basic stock quotes, you have to subscribe for $5 per month.
● This brokerage only offers a limited trading option. Also, there is no fixed-income investment product. Further, forex and commodities are things that Robinhood does not offer.
● The app lacks the transparency of important information to its users such as payment for order flow stat. Thus, investors could not know the accuracy and best time to trade.
Conclusion
If you are into stocks and ETFs investment, then Robinhood is a good app to start. Not to mention you can start investing at a low price of $1. Furthermore, whether you use the app or the website, Robinhood still gives the essential information that you need.
The downside of this trading app Robinhood is the lack of information that will be hard for investors in analysis and decision making. Yet, at the bottom line, this app is still good to use for giving trading experience for beginners.