Robinhood Review

We cover the online trading platform

Updated: June 24, 2023
Matt Crabtree

Written By

Matt Crabtree

 

Robinhood was the original pioneer of commission-free trading, letting non-professional traders get involved with today’s money markets directly without needing a wealth manager. 

They are one of the few brokers I have encountered who sell fractional shares of equities starting at only a pound. Webull is an additional choice.

With the IPO offering, you may invest in new businesses before their stock begins to trade on public marketplaces. The broker's goal is to democratise finance for everyone, and I believe they have the staff and technology to do this.

But does it hit the bullseye? Find out more in our Robinhood review.

At a Glance – Pros and Cons

Through cutting-edge and user-friendly investment software, Robinhood offers commission-free stock trading that comes with access to special trading tools and market analysis. A wide range of financial products, including stocks, funds, options, and cryptocurrencies, are available to you. 

But what are the main strengths and weaknesses of Robinhood? Let’s review where they hit the mark!

Pros

✔️ Quality execution

✔️ Tonne of valuable instructional materials

✔️ Top-notch tools for market research and insights

✔️ Excellent customer service

Cons

Unavailable to UK clients, CFD trading unavailable to USA clients

❌ Limited alternatives for funding

❌ No online chat assistance

❌ Deposit of at least £1,500 for a gold account

Robinhood – Overview 

As per the above, the major drawback is you can’t use this if you are based in the UK.

That said: who is Robinhood, where did it come from, and what has it been up to all this time? That query is addressed in this section.

This investment service has a solid reputation in the derivatives markets…

Here is a quick rundown of its history since its founding.

Founding 🏢

Robinhood Markets Inc., normally just Robinhood, is a United States-based financial services company with its headquarters in California. It was established in 2013 by two students. If you reside in the US, they provide online trading and investment services. Below, we cover why they’re not yet available in the UK.

When the founders learned that major Wall Street corporations paid virtually hardly anything to buy and sell stocks, but the majority of Americans were charged fees for each transaction, they came up with the moniker.

They returned to California to create a financial product that would provide everyone—not just the affluent to stock markets because they wanted to fix that.

The majority of people will be aware of the fabled figure of “Robin Hood” a mythical figure and bandit who first appeared in English mythology and later appeared in fiction and movies. Dwelt in Sherwood Forest, close to Nottinghamshire, according to folklore.

He frequently engaged in combat with the Sheriff of Nottinghamshire, his adversary. Robin is renowned for wearing green, being a great bowman, and for robbing the wealthy to distribute to the needy. Thus, the name's inspiration behind it.

Trading and Investing

No matter your background or economic situation, Robinhood allows everybody exposure to the financial system. They offer consistent interest rates, no deposit minimums, and a service that was created specifically for smaller accounts because of this.

They prioritise making everyone feel welcome at Robinhood and would rather service many small clients than a select number of big ones.

You can invest in self-directed accounts using a wide range of various methods on both desktop and mobile devices. I find it fantastic that you can use Robinhood Crypto to access crypto investments as well as perform an infinite number of commission-free trades on stocks, ETFs, options, and other securities.

There are nevertheless certain fees to be paid despite the absence of a commission charge. After all, the stockbroker has to generate income in order to continue attempting to enhance its services.

Cash Card

Robinhood Cash Card

With the Robinhood Cash Card, convert your cash into stocks and cryptocurrency. It is a debit card that allows you to invest as you spend money and has weekly benefits.

Gain access to daily savings, invest a portion of your income instantly in your preferred stocks and cryptocurrencies and receive stock and cryptocurrency incentives.

There are never any monthly charges, in-network ATM fees, overdraft fees, or requirements that you have a minimum amount when using your Robinhood Cash Card. Use 90,000 fee-free ATMs and get phone help around the clock.

Regulations

Users with self-directed accounts can trade securities using Robinhood Financial. The Financial Industry Regulatory Authority accepts Robinhood Financial as a member (FINRA) and the FSCS. It pleases me to know that the broker operates under stringent regulations in the States and UK (how the FSCS works). 

I would always choose to work with a licenced broker. This is to ensure that if something did go awry, they could offer you coverage that an unlicensed broker could not. As a result, I would have no issues giving them access to my money, which is excellent because it frees me up to concentrate on my trading.

To safeguard clients and the bigger financial system, they closely collaborate with politicians and authorities.

Countries 🌞

Despite the broker's numerous advantages, they presently only provide services to users in the United States, while they have plans to broaden their reach in the future. But keep an eye out, they’ve suspended their outreach into British markets but this might change in the future!

We initially planned to launch Robinhood in the UK in 2020. A lot changed in the world in the first half of 2020, and so we made the difficult decision to postpone our UK launch indefinitely in July 2020.

Robinhood Review – Platforms

The stated mission of Robinhood is to make investments in the financial markets more accessible, understandable, and inexpensive for individuals of all skill levels. Everything you require to enter and maintain your position is available on the site. Establishing customizable and personalized news and reminder alerts can help you stay current on your assets. 

On Robinhood Gold, which contains a variety of potent tools, data, and techniques, Level II trade data from Nasdaq is included…

If you didn’t know, Level II data shows the various bid/ask levels for the selected stocks, which may be used to establish if a stock is available at a certain price. Sophisticated traders can use platforms like iron condors, strangles, straddles, etcetera. To execute more complex trading systems.

With the exception of a few territories, you can manage your assets and investment portfolio from anywhere in the globe using the Robinhood application for Android and iOS smartphones. Currently, the majority of web browsers, iOS, and Android users can access Robinhood.

The majority of current online browsers, including Google, Firefox, Safari, and Edge, are supported by the Robinhood Web, which is accessible on both PC and Mac.

The fact that you can use the online platform without installing any application while also having access to the most recent version strikes me as fantastic. However, since I like to carry the markets in my pocket and have access to them anytime I want, I prefer the ease of the trading app.

The Robinhood systems are user-friendly, with slick, contemporary layouts that make carrying out daily trading tasks simple. Nevertheless, you could find it to be constrained if you need more intricate market research employing bespoke indicators.

Robinhood Platform

I would use the MetaTrader platform in this situation instead. You can obtain this via numerous trading firms, like IG, and it is widely considered one of the greatest trading systems for day dealing.

That said, I believe the Robinhood interface will offer more than sufficient tools and functionality to satisfy your needs if you're a recreational trader or want to keep holdings for a long time. Dependent on your trading strategy, you could tailor the platform to be as complex or straightforward as you like.

Below are some of the system's major characteristics:

  • User-friendly, elegant UI
  • Data from level II markets for precise pricing
  • Outstanding Morningstar studies and recommendations
  • Gain support in learning how to invest in stocks using trading apps
  • Review crucial stock reports and information.
  • Make watchlists for your favourite instruments to watch.
  • To identify price patterns, look at candlestick charts.
  • technical tools for in-depth chart analysis
  • Creating tailored notification alerts will help you save time.
  • Make a variety of orders, such as pending and immediate orders.
  • Use of the service is free on the web and on mobile devices (iOS & Android).

Robinhood Review – Toolsets

As was already noted, the Robinhood system provides a number of built-in features for market analysis, order management, and notifications. You will be happy to learn that they provide some more tools at no additional cost if you would like to take things to a higher level.

These might be very helpful to you when you do and analyse market research. They helped me generate concepts that I would not have thought of on my own. You might wish to use the tools for guidance if you have a position that you have open or are thinking about opening.

Morningstar

I truly like how the broker collaborates with Morningstar to provide expert research. You have unrestricted access to in-depth analyses and research reports on more than 1,700 stocks thanks to this fantastic tool. I enjoy how they are constantly updated to reflect significant business happenings so you can stay up to speed with what is going on in the markets.

Each study includes expert analysis and evaluations of the business strategy, competitive advantage, fair market value, risk, and leadership of the organisation. To help guide your investing decisions, read these reports to discover what Morningstar experts believe about a company's prospects.

Nevertheless, accessibility to its premium, in-depth stock research reports is restricted to Robinhood Gold subscribers only.

News 📰 🔥

The app includes a link to the Robinhood feed. It provides users with free access to Reuters, Wall Street Journal, and Barron's market news reporting thanks to a collaboration with Dow Jones.

Read news articles from reputable news sources, finding those that are pertinent to your watchlist and investing account. For items on your watchlist and portfolio, you may establish alerts. Additionally, you can see ad-free videos from Cheddar, CNN Business, and Reuters right in your newsfeed.

Robinhood App

Robinhood Learn

The broker offers a wide range of educational resources that start you off with the basics of trading. You may go through a huge collection of plain English explanations of investment fundamentals. The fact that the information is also available on the app, in my opinion, is incredibly helpful since it lets you learn comfortably and at your own speed.

The Robinhood website has a section devoted to education that includes a number of constantly updated and educational articles covering a wide range of financial subjects for both new and seasoned traders.

It's comforting to know that the authors are well-regarded as they have had work published by publications like WSJ, Forbes, and Bloomberg, to mention just some. A smart place to start is with investing 101, where you can learn the basics before getting started.

Robinhood “Snacks” 🍔

Robinhood Economic News

No, they’re not endorsing a new line of crisps… ‘Snacks’ is the economic news you need to begin your day; that’s covered in this hip, three-minute email with innovative perspectives. It seemed like a good approach to get a head jump on what may affect the markets that day.

Robinhood Review – Marketplaces

With Robinhood, you have access to a diverse range of more than 5,000 shares,  options, funds, and crypto to invest in and exchange. This covers the majority of American stocks and exchange-traded funds (ETFs) available on American exchanges.

I appreciate that you may invest without paying fees in certain businesses or investment portfolios (ETFs). Even well-known equities, including more than 250 international stock assets not traded on American markets, are available for long or short positions. Bitcoin and Ethereum are cryptocurrencies. It is important to note that Robinhood Crypto is not a FINRA member.

Invest as little as £1 in businesses that may one day add value to you and your wealth thanks to the hundreds of stocks available to you and fractional shares.

  • Stocks and ETFs traded on U.S. exchanges 
  • Options contracts 
  • ADRs for over 250 cryptos, such as BTC and ETH
  • Future IPOs will allow you to be among the first investors in the market.
  • With fractional shares, invest as little as £1 in hundreds of stocks.

Robinhood Review – Accounts

Three distinct account kinds are offered by Robinhood to accommodate the various demands of investors.

It's convenient because accounts may be upgraded or downgraded at any moment. Leverage is not available in the Robinhood Cash or Instant accounts, whereas it is available in the Robinhood Gold account up to a ratio of 1:2. 

The Instant Account does not have a minimum investment barrier, for those with low surplus personal savings to invest, while the Gold Account does demand a minimum deposit of £1,500 to open.

Device tracking is a helpful tool that gives your account an additional degree of protection by enabling you to watch and control the many devices accessing it. For an additional degree of account protection, you may set up two-factor authentication.

Robinhood Instant account 

When you first sign up, the Robinhood Instant account is what you are given by default. It provides access to longer market hours and fast deposits of up to £800.

Robinhood Gold account 

While offering more advantages than Instant accounts, Robinhood Gold is comparable to them. The cost of a Robinhood Gold account starts at £3.50/mo, which, in my opinion, is fairly reasonable given the extra capabilities you receive.

It allows for trading on margin, allows for larger deposits with quicker access to money, and gives access to priceless research papers like Morningstar and Nasdaq. Margin investing may boost your buying power and flexibility while also exposing you to extra risk.

The gold account is available for a 30-day free trial. Even if you don't want to deal on margin, you can still enjoy Robinhood Gold and all of its premium services. You may simply disable trading with margin in this situation.

Cash account

The Robinhood Cash account doesn't really allow for rapid deposits or instant payouts, but it does allow for commission-free investing throughout regular and extra trading hours.

Account Creation

Before getting access to mutual funds, stocks, options, and more, you must be above 18, have a social security number that is current, and reside in the USA in order to apply to start a Robinhood account. You may use the Robinhood app to submit an application to start an account. After a day, you will learn if your application was approved or whether more information is needed. 

Submit the necessary papers, such as your passport, driver's licence, utility bill, bank statement, etc., to prove your identity and residence. The software allows for the submission of documents. Your papers will be examined and your account will be verified in 5-7 days.

The enrollment procedure isn't the fastest you'll find, but they have to follow rules, which could lead to delays. Bank deposits can be made before your account is verified, but they won't be made until your account is formally created.

Support

During trading hours, telephone and email customer service is available (9:30am – 4:00pm EST). Even though their site has a sizable list of frequently asked questions (FAQs) that cover most problems, it would be more helpful if they also provided live chat assistance. However, I advise looking at Trading 212 if you still want access to 24/7 assistance.

Gathering direct customer feedback on the products they are producing has been a priority for Robinhood since the very beginning. The core of the business development approach that took them to where they are now is talking to consumers.

They are constantly interested in hearing your suggestions for improvement and your comments. Please get in touch with them if there is anything you would like them to include that is missing.

Robinhood Review – Experience

Overall, Robinhood has a lot of qualities that I find impressive and set them apart from the competition. On simple and flexible platforms, commission-free trading and investing are available.

There are several excellent trading tools that I have discovered to be quite helpful for aiding in market research and staying current with the most recent occurrences in the world of business. They provide security measures and offer training to put clients in the best possible positions for success.

Funding

Just bank transfers are accepted for deposits and withdrawals on Robinhood. This is pretty constrained, and I believe it would have been much more useful if they had included alternatives for online payment processors like PayPal, Neteller, Skrill, etc. I suggest looking into Oanda as an alternative for a greater selection of funding options.

In the Robinhood Android or iOS app, you may connect a significant bank. Simply select your institution from the directory of major banks or conduct a manual search to find it. You may deposit money into your Robinhood account after linking your bank account. Up to £35,000 can be transferred into and out of your account each working day.

Robinhood Funding

Additionally, you have the option to cancel outstanding deposits prior to three predetermined deadlines or set up automatic payments into your Robinhood account.

Up to £800 can be deposited instantly. Any deposit of more than £800 will be transferred in a period of 5 to 6 business days. Even though you have immediate access to your money, the ACH withdrawal may not take place for 5–6 business days after you start the transfer. The transaction will be rejected if the account does not have the necessary amount.

You can only withdraw cash to the checking account from where it was placed in the first sixty days according to Anti-Money-Laundering (AML) regulations. If you have the necessary information and the account in issue is closed, you can start a move to another checking account.

Robinhood Review – British Verdict 

If you’re reading this, you’re probably British. Unfortunately, Robinhood’s funding choices are constrained, and their services are now only available in the USA.

They don't provide CFD trading, and skilled traders could find the platform's analytical tools to be a little bit limited.

Robinhood offers prompt, high-quality customer service and thinks the financial system ought to be designed to benefit all people.

They make items that enable you to begin investing at your own speed and according to your own terms because of this.

Related Guides:

Robinhood Review – FAQs

Who is the ideal Robinhood user?

How does Robinhood generate income?

How can I remove my funds from Robinhood?

Is Robinhood a reliable investment option?

Is using Robinhood worthwhile?

Robinhood: is it legit?

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