💡 Quick Verdict
Robinhood pioneered commission-free trading and remains popular for its simple interface. It's best for beginners who specifically want to trade stocks, ETFs, or crypto. However, it lacks educational depth, has faced controversies, and isn't ideal as a primary bank. For most beginners, we recommend Acorns or SoFi Invest first.
✅ Pros
- $0 commission trading
- Fractional shares available
- Clean, simple interface
- Crypto trading included
- Cash management account
- No account minimums
❌ Cons
- Limited research tools
- Past controversies (GameStop)
- Basic educational content
- No retirement accounts
- Customer service issues
- Can encourage overtrading
What is Robinhood?
Robinhood launched in 2013 with a mission to democratize finance through commission-free trading. It disrupted the brokerage industry and now offers stocks, ETFs, options, and cryptocurrency trading. Robinhood also offers a cash management account with debit card.
Learn more about app safety in our Safe Finance Guide.
Stock Trading
$0 commissions
Fractional Shares
Buy any amount
Crypto
BTC, ETH & more
Cash Card
Spending account
Who Should Use Robinhood?
Robinhood is ideal for:
- Beginners wanting to try stock trading
- Those interested in cryptocurrency
- People who want a simple trading app
- Users with small amounts to invest
Robinhood might NOT be for you if:
- Serious long-term investors
- Those wanting research tools
- People who need retirement accounts
- Anyone prone to impulsive trading
Not sure if Robinhood is right for you? Take our quiz for a personalized recommendation.
Robinhood vs Competitors
Robinhood vs Fidelity
Fidelity: Fidelity offers better research, retirement accounts, and customer service. Robinhood has a simpler interface.
Robinhood vs Acorns
Acorns: Acorns is better for hands-off beginners. Robinhood is for those who want to pick stocks.
Robinhood vs SoFi Invest
SoFi Invest: SoFi offers banking too and automated investing. Robinhood has better active trading features.
❓ Frequently Asked Questions
Is Robinhood safe?
Robinhood is a registered broker-dealer and SIPC member. Securities are protected up to $500,000. Cash is FDIC-insured through partner banks.
How does Robinhood make money?
Payment for order flow (selling order data to market makers), Robinhood Gold subscriptions, and interest on uninvested cash.
What is Robinhood Gold?
$5/month subscription offering larger instant deposits, margin trading, Morningstar research, and higher APY on cash.
Can I transfer stocks out of Robinhood?
Yes, you can transfer to another brokerage via ACAT transfer. Robinhood charges a $100 fee (often reimbursed by receiving broker).
Why did Robinhood restrict GameStop trading?
In January 2021, Robinhood restricted buying certain stocks due to clearinghouse deposit requirements. This caused significant controversy and regulatory scrutiny.
Ready to Try Robinhood?
See if Robinhood is the right fit for your financial journey