If you are thinking about investments in stock market and/or cryptocurrency, that is an easy to get in service to consider.
Robinhood is a free-trading Web Service and application, letting investors trade stocks, options, exchange-traded funds and cryptocurrency without paying commissions or fees.
In its early stages, Robinhood stood out as one of the only brokers offering free trades. But with many big-name online brokers eliminating trading commissions and fees, Robinhood has had to find other ways to stand out, which in 2021 includes a new recurring investments feature. That said, it's still a solid choice, and currently it's one of the few brokers that gives investors the opportunity to trade cryptocurrency.
Robinhood offers both web and mobile trading, but the platforms are purposely bare bones, and some investors may find the range of tradable securities and account options lacking.
Like some other brokers, including Interactive Brokers and Charles Schwab, Robinhood has introduced fractional shares. That means you can pay as little as $1 for a portion of a share, even if that share's full price is in the hundreds of dollars. This feature makes it much easier to build a diversified portfolio — you're able to buy many more companies, even if you don't have a lot of money to invest.
Fractional trading pairs perfectly with Robinhood’s newest feature: recurring investments. All you have to do is set a schedule (weekly, biweekly, monthly, etc.) and a dollar amount, and Robinhood will automatically invest the amount you want, when you want. While this isn’t an uncommon feature among brokers, using it alongside fractional shares is a standout benefit. When recurring investments are based on buying by-the-share (versus a dollar amount), you’ll inevitably end up with uninvested cash, but Robinhood has solved this problem.
Fractional shares have also given the company the opportunity to offer a dividend reinvestment program (known as a DRIP), which it didn’t previously. This is a very valuable strategy for building wealth over time, much like recurring investments. By offering the fractional shares/recurring investments/DRIP package, it seems Robinhood is working to stay competitive with the major brokers now that free trades are commonplace.
If there is one highlight with Robinhood's research, it is the Robinhood Snacks newsletter and podcast. The Robinhood Snacks editorial team summarizes the market each day in an easy-to-understand, digestible format.
And… free shares. When you open your account, you get one, randomly selected share for free, to let you feel the heat of being investor. Then, you can get more free shares, if you refer this trading opportunity to friends. Once your friend signs up with your referral link, and links their bank account, you’ll both get a free stock.
My referral link for new account registration: https://join.robinhood.com/michaep-a04d2a
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