About two weeks ago, I downloaded a fairly new commercial app called Robinhood and thought I’d share your initial review with you today.
I have wanted to change shares for a long time, but the commissions involved in negotiating or acquiring an intermediary always interpose me. If you’re like me and don’t have a lot of money to change, those rates can affect your profits. Robinhood attracted me to sign up because the app is free, but also because a promotion allowed me to get free stock with registration.
Is it worth downloading Robinhood?
It’s been a long time since I’ve been excited to make money online. The internet has become overly saturated in almost every market and many companies want to attract you so that they can make quick profits while you get nothing. Robinhood is not this company.
When you sign up for the application, attach Robinhood directly to your bank account. I ended up getting a free share on Fit Bit and eventually sold those shares. Robinhood points out that there is 1 chance out of every 1,000 that you can pick up a significant value called Apple. From the first stock I got well with 4 that I now get for referrals, the best stock I received was valued at $ 10. Nothing big, but free money is free money. You must hold the shares for 3 business days before you can exchange or sell your shares.
How does Robinhood make your money?
Like a bank, Robinhood makes money (and can issue free shares) because they collect interest on the money you deposit into your account. As long as its customers ’acquisition costs are below their interest benefits, Robinhood will be a profitable business. Because some users have more than $ 100,000 in their account, you can easily see why Robinhood can offer free trades.
That’s not to say it’s perfect.
Day trading is something you can’t do unless you have more than $ 25,000 in your account. I think you can get up to 3 or 4 days of trading in a five business day period, or you could be labeled as a pattern trader. That said, Robinhood can be used for swing operations and long-term investments.
What about the interface?
The Robinhood interface is very basic and has bare bones. While I haven’t had a chance to dive into Gold Membership, here’s what I’ll say:
I do NOT recommend using Robinhood to decide when you want to buy and sell stocks. Instead, comply with the Robinhood app by using Market Watch i Bar chart to get the information you need before trading.
Buying stocks with Robinhood is very easy.
With the basic subscription (which is free), you get up to $ 1,000 that you can use with Robinhood money, while you wait for your money to be transferred from your bank account to buy a share. In short, you’ll get the shares right away (with Robinhood money) until your bank account transfers. This is very interesting, as it is crucial to get the right prices; Especially with swing trading.
Trading options are also another possibility within Robinhood.
You will be able to set up contracts. That said, I’m relatively new to the stock market, so all I’ve devoted myself to is buying and selling stocks.
How Much Money Can You Make With Robinhood?
The other question could really be: how much money can be lost? If you play the stock market and don’t know what you’re doing, chances are you could lose (and not make money) with this app.
I am not a financial advisor, so I cannot offer financial advice. What I can say is that I would definitely recommend reading books on how to successfully trade stocks and practice them in a simulation app. before using real money.
Aside from the fact that you can’t contribute daily to Robinhood unless you have more than $ 25,000 in your account? If you want to buy and sell stocks for the first time without trading commissions, it will probably be an app worth trying.
I give Robinhood a 4 out of 5. The app is very basic and makes it easy to buy and sell stocks. Unfortunately, the app is also so basic that you’ll want to use Market Watch and Barchart before making purchasing decisions.
With this app you could make a lot of money, but you could also lose a lot of money.
In the end, Robinhood can be a great way to make money, but if you’re not sure what you’re doing, you could lose money too. Would I replace my Roth to fund this application? Of course not. But I would use Robinhood to supplement my income by making smart investments and deriving family and friends to apply for more free shares.