The Robinhood trading app was made with investors and in particular millennial investors in mind.
Millennials make up 80% of Robinhood’s user base of over 3,000,000 members and the average age of their members is 26.
What’s so great about the Robinhood trading app?
And is it worth downloading and jumping on the bandwagon?
As a fellow Millennial, I had to see for myself what all the fuss was about.
So what is the Robinhood trading app?
Robinhood is a free trading app available on both the Apple store and Google Playstore. It is ideal for millennial investors who are seeking the ability to buy a wide selection of stocks, ETFs and cyptocurrencies through a simple interface without having to pay any commissions or fees.
So how does Robinhood make money when it charges no commissions? Well, it makes money from interest earned from interest earned on your cash balances and margin lending.
What will you be investing in?
Exchange Traded Funds
If you haven’t heard of Exchange traded funds (ETFs), let’s pause and have a look at what these are.
ETFs are a collection of various investments such as shares of stock, bonds, oil futures, gold bars, foreign currency etc.
The major advantage of investing in an ETF over investing directly in a company like Apple for example, is the ability to diversify.
You can also invest only small amounts. Often, investing directly in a company requires a large minimum investment.
So how does the Robinhood trading app work?
The first step is to the download the app and sign up for a new account.
The good news is there is no minimum investment to get started and the sign up process is simple and takes less than 5 minutes to complete.
You just need to provide your email address and pick a unique username. And all this can be done via the app!
If you felt the need to go onto the website to sign up, then the Robinhood app might not be for you. The whole idea of this app to be able to do everything from the convenience of your smartphone.
Once you have created an account you will be need to connect your bank accounts to the app.
Connecting to any major bank is pretty easy. All you have to do is choose your bank, enter your username and password, and Robinhood will verify the account and balance instantly.
Linking your bank account gives Robinhood accesses to funds to start trading.
So how safe is your money?
This is probably the question floating around in your mind after I said linking your bank account gives Robinhood access to your money.
Luckily, the Robinhood trading app supports two-factor authentication, so it is a good idea to add that for your account to ensure your investments are safe. You don’t want someone jumping on your phone and getting a hold of your password and get the ability to cash out money from your account.
How to start trading
Once you transfer some money to start trading, you can search for stocks you want to buy or sell in the top right-hand corner.
If you aren’t quite decided on which stock to buy, I loved the feature that makes it easy to check out the recent news for any stock that you are interested in.
This makes it easy to do some stock research on the go, perhaps while you are on your commute to work (if you are on public transport).
When you decide on a share to buy, you just need to:
- Type in the number of shares,
- Review the estimated cost, and
- Swipe to trade.
Once you swipe, your order is put in to purchase the stock and when your order to buy is successful, you will see digital confetti filling your screen, celebrating your purchase of a share. I thought this was pretty cute and quite different from trading on a trading program run by the banks.
My favorite thing about the Robinhood App: Watchlists, News, and Notifications
I have to be honest my interest in the stock market comes and goes depending on whether a stock catches my eye.
But when I’m keeping an eye on a particular, I love the fact that I can get instant updates companies that I’ve placed on my watchlist.
That means once I’ve added the company to my watchlist, I get major stories as app notifications on my phone. This lets me quickly learn whether I expect the stock price to go up and down.
I found it pretty easy to customize my notifications on what I did and did not want to see popping up on my phone. I also found it useful to add other stocks that I own on other brokerages onto my watchlist so I could keep up to date on them in one easy method.
And when I’m looking to buy a stock, I don’t want to buy it just before it drops. Not good. But if I think it’s about to get a hop on, then I quickly nab it.
Is Robinhood trading app for you – is it a great way to make money online?
The best things about the Robinhood trading app is the cost of $0 per trade. The brokerage I usually purchase my shares through has a $30 transaction fee each time I buy or sell.
The $0 transaction cost means that Millenials or even experienced investors can get into the stock market at a low cost. You don’t have to buy a big amount of shares to make the brokerage cost ‘make sense’.
Plus it is also a really easy and fuss free way to buy and sell stocks with no commissions, fees, or account minimums.
If you are looking to get started investing in the stock market, Robinhood is a great place to begin.
However, to make money online with any stock trading, you have to know what to look for and actually do your research.
If you don’t find investing very interesting or aren’t dedicated to reading up on the stock market, then perhaps the Robinhood trading app is not for you.
Without making doing your research to make an educated buy and/or sell decision, stock trading would be akin to gambling. And gambling is dangerous with no guarantee of returns.
If you are looking for another way to grow your wealth, then you definitely need to check out my no.1 recommendation to build a long-term stream of income. This proven method has shown thousands how to turn their passions (whether it’s investing or not) into a profitable online business.
Well that’s it for my Robinhood trading app review.
Let me know what you think of the app. I’d love to hear your experience with it!