Robinhood is one of the US-based trading platforms. This article will explore Robinhood reviews for beginners and trading investors. Continue to find out more information.
Robinhood broker review
Robinhood was founded on April 18, 2013, by Vladimir Tenev and Baiju Bhatt. The company’s headquarters is in Menlo Park, California. As of Robinhood review 2025, the brokerage boasts 23.9 million funded customers, 13.7 monthly active users, and $129.6 billion worth of assets are under protection.
They offer commission-free trades on stocks and exchange-traded funds (ETF) through a mobile app launched in March 2015. Robinhood Financial, Robinhood Crypto and Robinhood Securities are Robinhood subsidiaries.
Robinhood Financial Support – US Exchange Listed Stocks and ETFs, US Options contracts for exchange-listed stocks and ETFs and ADRs for over 650 globally listed companies. They offer business through the mobile app and web trading platform.
Robinhood brokerage review
| Robinhood review | Details |
|---|---|
| Company name | Robinhood |
| Official website | http://robinhood.com/ |
| Founded year | April 18, 2013 |
| Founders | Vladimir Tenev and Baiju Bhatt |
| Head quarters | Menlo Park, California, U.S. |
| Service areas | United States and United Kingdom |
| Regulations | FINRA-Financial Industry Regulatory Authority. SIPC-Securities Investor Production Corporation. SEC-Securities and Exchange Commission |
| Services | Stockbroker Electronic trading platform |
| Minimum deposit | $0 |
| Trading commission | $0 |
| Market asset | Stock ETF Options Crypto |
Regulations
- The Financial Industry Regulatory Authority (FINRA) and the US Securities and Exchange Commission (SEC) govern Robinhood.
- Robinhood is also part of the Securities Investor Protection Corporation (SIPC).
- Which offers up to ($500,000 including cash claims of $ 250,000) in protection for investors.
- Robinhood Trading Brokerage provides extra SIPC coverage for up to $1.5 million in cash and $10 million in securities per brokerage client.
Trust ability
The Robinhood security team uses several high-level measures to protect your account. Your account password is hashed using the industry-standard BCrypt hashing algorithm and is not stored in plain text. Sensitive details, such as your social security number, are encrypted before they are stored.
Robinhood uses the transport layer security (TLS) protocol, so mobile and web applications communicate securely with their servers. You can access your mobile app through biometric sensors (Touch ID, Face ID) or a personalized PIN code. They offer two-factor authentication via an external authentication app or SMS.
Robinhood has experienced data breaches in the past four years, with the most recent in 2021, allowing access to two customer lists with two million names and email addresses. There was no financial damage, and the hackers got no financial information.
Product selection
The products and services offered by Robinhood are stock, ETF, fractional share, options trades and crypto trading. You are unable to trade commodities, currencies, futures, fixed-income instruments, or mutual funds. If Robinhood is your broker, you have the following investing choices:
| Robinhood added operations | Established years |
|---|---|
| Instant deposit | February 2016 |
| Margin trading and market analytics to a subscription business model called Robinhood Gold | September 2016 |
| Option trading | December 2017 |
| Trading in American Depositary Receipts | August 2018 |
| Buybacks and split shares Reinvestment plans | December 2019 |
| Formal investment plans | May 2020 |
| Initial Public Offering (IPO) shares | May 2021 |
| Extended time trading | March 2022 |
| Lending money | May 2022 |
| Individual Retirement Accounts (IRAs) | January 2023 |
Stocks
You may invest in a range of assets with Robinhood, including stocks and options. You can invest in over 5,000 stocks through Robinhood Financial.
ETFs
Robinhood offers a wide range of ETFs across sectors, asset classes, and geographies, allowing investors to diversify their portfolios with commission-free trades. The platform also supports fractional stocks, making it accessible to those looking to invest in high-priced ETFs.
Fractional share orders are available for equities valued at more than $1.00 per share and has a market capitalization of more than $25,000,000; Robinhood provides both stocks and ETFs.
Options
Robinhood offers a user-friendly options trading platform with no contract fees, advanced charts, and some of the lowest margin rates in the industry.
Use advanced charts and set your trading strategy well track and trade moving average (MA), relative strength index (RSI), moving average coordinate divergence (MACD), and many other technical indicators.
Cryptocurrency
Robinhood Crypto offers Bitcoin, Ethereum, Dogecoin and other cryptocurrencies 24/7 service. You can use any funds you have deposited in your brokerage account to buy cryptocurrency through Robinhood Crypto.
Robinhood Crypto is not a member of SIPC or FINRA. Cryptocurrencies are not stocks, and your cryptocurrency investments are not protected by the FDIC or SIPC.
Robinhood trading platform
Robinhood provides a safe, simple, and user-friendly web trade platform. They offer Android and iPhone applications for mobile trade.
Mobile trading
Robinhood’s mobile trading platform is fast, and simple and includes features like customizable alerts, news feed, candlestick charts, and live earnings call audio.
It offers essential stock trading tools such as watch lists, stock quotes with charts, analyst ratings, and Bloomberg TV streaming. The app is available for iPhone, Apple Watch, and all iOS devices running iOS 11 or later, and Android devices running version 7 (Nougat) or higher.
Web trading
Robinhood Web supports Chrome, Safari, Firefox, and Edge. It works on both Mac OS and Windows PCs. The website is very simple and caters to basic investor needs.
Robinhood trading technology
Robinhood says its system automatically sends orders to the market maker that can offer the best price, based on past performance. According to the business, 96.85% of orders are filled at or above the National Best Bid and Offer (NBBO), an average price increase of $2.77 for every 100 shares.
But it does not have numbers for alternatives. To keep things simple, Robinhood does not accept backtesting and does not provide a demo account. However, it does allow recurring investments.
Robinhood brokerage account review
Robinhood offers two types of accounts: Margin accounts and cash accounts. Each account type offers different levels of trading access and features. To open an account, you must meet certain eligibility criteria.
You must be at least 18 years old, have a valid Social Security Number (SSN) (not just a Taxpayer Identification Number), and be a legal U.S. resident within the 50 states. Provide residential address. Additionally, you must be a US citizen, permanent resident, or hold a valid US visa.
| Account types | Margin account | Cash account |
|---|---|---|
| Trade asset | Trade stocks and options with money that has not been resolved. | No trading using proceeds from the selling of unsettled stocks and options. |
| Margin trade | Access margin trading | Don’t access margin trading |
| Access level 3 options trading | Acceptable | NA |
| Unlimited day trade | NA | Acceptable |
| Pattern day trading regulation | If the traders make 4 or more-day trades within 5 trading days in a margin account, they are subject to pattern day trading regulations. | Cash accounts are not subject to pattern day trading regulations. |
Robinhood bank account review
- In December 2018, Robinhood announced new transaction and savings accounts, with market-leading interest rates and said these accounts would be insured by the Securities Investor Protection Corporation (SIPC).
- However, when it was revealed that SIPC had not been consulted and would not insure these accounts, Robinhood had to stop bookings for the new offer. A year later, in December 2019, the company re-introduced the accounts, this time with insurance from the Federal Deposit Insurance Corporation (FDIC).
- Building on this, in March 2022, Robinhood launched the Robinhood Cash Card, a debit card that allows users to round up their purchases and automatically invest additional funds in stocks and cryptocurrencies.
Robinhood brokerage fees
Robinhood standard pricing fee schedule is below the table. Understand the Robinhood charges before investing.
Stock, Options & ETFs charges
| Charges | Details |
|---|---|
| U.S. Listed & OTC securities (including ETFs) and options | |
| American Depositary Receipts (ADRs) |
Transfers & money movement fees
| Transfer fees | Rate |
|---|---|
| Debit balance | $0 |
| Returned check (non-IRA), ACH or wire & Recall/Stop payments | $0 |
| Returned check – IRA rollovers | $25 |
| ACATS, Outgoing | $100 |
| Incoming wire transfer | $0 |
| Outgoing wire transfer | $25 |
| Domestic overnight check delivery | $20 |
| Debit card funding – Deposits in | $0 |
| Debit card funding – Withdrawals to external (non-RH) debit card | up to 1.75% (min. fee up to $2) |
| Instant bank transfers – Deposits in | $0 |
| Instant bank transfers – Withdrawals from your Robinhood account | up to 1.75% (min. fee up to $2) |
Regulatory trading fees
| Trading fees | Rate |
|---|---|
| Regulatory fee | $27.80 per $1,000,000 of principal (sells only) rounded up to the nearest penny. |
| Trading activity fee | $0.000166 per share (equity sells) and $0.00279 per contract (options sells). |
| Options regulatory fee | $0.01 per options contract (buys and sells) |
| OCC clearing fee | $0.02 per options contract (buys and sells) up to 2,750 contracts $55 flat rate per trade for trades with over 2,750 contracts |
Note: Laws and regulations determine regulatory trading fees, which can change suddenly. You should always ensure that you are aware of the most recent fee schedule before trading on your account.
Robinhood service fees
| Service fees | Rates |
|---|---|
| Electronic statements & trade confirmations | $0 |
| Paper statements (monthly) | $2 |
| Paper trade confirmations | $2 |
| Domestic overnight mail | $20 |
| International overnight mail | $50 |
| Paper form CRS | $0 |
| IRA match – early removal fee | Variable |
| Gold cancellation IRA match removal fee | Variable |
Robinhood margin fees
| Settled margin balance | Margin interest rate |
|---|---|
| Up to $50,000 | 6.75% |
| $50,000 up to $100,000 | 6.55% |
| $100,000 up to $1 million | 6.25% |
| $1 million up to $10 million | 6% |
| $10 million up to $50 million | 5.95% |
| $50+ million | 5.7% |
Fee-free services
Robinhood offers a fee-free framework for account opening, maintenance, inactivity, new card issuance and in-network ATM usage. Although there are no fees for out-of-network ATM transactions imposed by Robinhood, the ATM provider may charge fees that Robinhood does not reimburse or profit from.
Similarly, there are no foreign transaction fees, but MasterCard may charge a currency conversion fee if you want to pay in US dollars abroad. Some merchants may charge a fee for transactions under a minimum amount or for using a debit card. Interest may be charged on margin-operated accounts when transactions are funded from margin.
Compare Robinhood with associated online brokers
| Broker | Robinhood | Moomoo | Webull | eToro |
|---|---|---|---|---|
| Minimum deposit | $0 | $0 | $0 | Various |
| Stock trades | $0 | $0 | $0 | $0 |
| Per contract options | $0 | $0 | $0 | $0.65 |
| Max option legs | 4 | 4 | 4 | 2 |
| No of mutual funds | N/A | N/A | N/A | N/A |
| Fractional share trading of stocks | Yes | Yes | Yes | Yes |
| New spot Bitcoin & Ethereum ETFs | Yes | Yes | Yes, for bitcoin ETFs | Yes |
Robinhood’s pros and cons
Robinhood is the best brokerage firm in the investment platform. They provide a lot of advantages to the traders. Some of the pros and cons are given below:
| Pros | Cons |
|---|---|
Education and research
Robinhood helps with educational and research tools like articles, posts, libraries, snacks, blogs and journals. Articles and posts related to education can be found in the learning section of the website. All the topics in that library section are accompanied by question marks, which gives interest in reading that topic.
Robinhood’s snacks section offers videos and articles related to finance and business. They upload it on a daily and weekly basis. It is useful to understand what is happening in business, technology and industry. Here are some of the funniest business news you can get. Daily Snack Domain is a subscription pack.
Its research information is limited but contains extensive citations and reports for Robinhood Gold members. When you click on Robinhood’s Investing Basics field, you get an investment idea or knowledge.
Customer support
Robinhood customer service is an easy and simple way to connect the customer and the company. They provide several ways of support with our reliable online broker or agent.
| Support methods | Details |
|---|---|
| Website | https://robinhood.com/us/en/ |
| Phone | 7 AM – 9 PM ET. Only weekdays, Monday to Friday, will provide administrative phone assistance for brokerage accounts (excluding holidays). |
| App chat | 24/7 service |
| General support | Web or phone app |
| Informational phone number | 650-761-7789 |
| Robinhood Crypto or Robinhood Money concerns | 888-275-8523 |
| Robinhood Gold Card support | Go to your credit card app → then menu → help Center for specific contact information. |
Conclusion
As a brokerage platform that makes investing easy and offers commission-free trading, Robinhood stands out for its user-friendliness. Its pricing structure is very competitive, with no account structure, maintenance, or inactivity fees and cheaper margin alternatives.
Although it lacks advanced features like backtesting, demo accounts and comprehensive customer support, it serves beginners and casual investors well.
However, users should be aware of potential fees from third-party services such as out-of-network ATMs and currency exchange fees. Overall, Robinhood is a solid choice for those looking for straightforward and low-cost investing.
Pro Tip
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FAQs – Frequently Asked Questions
1. How long does it take for Robinhood to review the application?
Robinhood usually takes 1 to 2 business days to review and approve your application.
2. Is Robinhood a good brokerage?
Yes, Robinhood is a good brokerage for beginners and casual investors due to its commission-free trading and user-friendly platform, but may lack advanced features for more experienced traders.
3. Is Robinhood a safe brokerage?
Yes, Robinhood is a safe brokerage because it is regulated by the SEC, and your funds are protected by SIPC insurance, which covers up to $500,000 including cash claims of $250,000. However, it has faced some security and service issues in the past.
