what is robinhood worth

Under mounting pressure, Robinhood has finally unveiled 24/7 phone and chat support – but you still need to access it via the app. You must also keep the funds that earned the match in the account for at least 5 years to avoid a clawback fee of the match. Paying $0.01 more (potentially) per share shouldn’t impact a long-term buy and hold investor. review unholy grails – a new road to wealth However, if you’re a trader (which Robinhood’s platform is geared towards), this could be costly. Robinhood recently introduced a stock screening tool to their platform.

Slick and easy to navigate, it takes two seconds to scroll to your investments. You can eyeball your individual stocks’ performance from the home page on both mobile and desktop. Night mode is like walking down a lit alleyway, bulbs flickering, neon hinting at promised gains.

  • On Robinhood Learn, you can find many how-to articles and investing term definitions.
  • Robinhood is very easy to use and its educational content is a joy to read.
  • A big downside is that you aren’t guaranteed to receive IPO shares when you request them.
  • The final output produces star ratings from poor (one star) to excellent (five stars).
  • We use data-driven methodologies to evaluate financial products and companies, so all are measured equally.

StockBrokers.com Review Methodology

For example, if you trade 100 index options contracts per month, you’d pay $50 in fees as a non-member vs. $35 as a Robinhood Gold member — saving $15 monthly or $180 annually. Robinhood Gold members get a 3% match on IRA contributions. This match could be worth a lot of money if you max out your IRA account each year. Robinhood only matches 1% of non-member IRA contributions. In other words, if you contribute $1,000 to a Robinhood IRA, you’ll receive a $10 match from Robinhoodor a $30 match from Robinhood Gold.

Available at no additional cost to anyone with a Robinhood account, the new Legend platform is a beautiful platform that brings fluid customizability to active traders. After launching in 2013, Robinhood’s brand witnessed rapid growth due to its disruptive no-commission model and easy-to-use platform. In recent years, however, competitors have adjusted by offering free trading products and user-friendly platforms of their own. With its edge slashed, the company has made material improvements in key areas like retirement products and educational content.

But if you want to minimize some of the other costs of using Robinhood, you can try the following. Robinhood accounts are available as both cash and margin. When deciding to open a cash account versus a margin account, it will depend on how you want to fund your account. Cash accounts are funded with existing money from your bank account, while margin accounts can be partially funded with borrowed money from a lender. Robinhood Legend is the new (optional) desktop interface for active traders. You can mark up charts with drawing tools and create custom intervals.

Both of these options, however, only cover the failure of Robinhood itself. While Robinhood is limited to the trading of a few cryptocurrencies, the platform does offer crypto storage. In addition, Robinhood launched an advanced charts feature in 2023. This feature allows Robinhood customers to analyze and research company trends and stock prices better. It makes trading so easy that it practically turns it into a game. This tends to drive active trading, or buying and selling stocks rapidly to turn a quick profit.

For example, depositing $3,000 into your brokerage account and keeping $500 in uninvested cash would justify the annual cost. Robinhood’s first product was commission-free trades of stocks and exchange-traded funds. Best investments for 2024 If you’re looking for a higher level of customer support, platforms like Fidelity and TD Ameritrade are better choices. Alternatively, if your primary plan is to trade cryptocurrencies, crypto exchanges like Coinbase or Gemini may be a better choice. Now through April 30, 2024, Robinhood Gold Members can receive a 3% match on funds deposited into their IRA accounts.

what is robinhood worth

How We Picked the Best Online Brokers and Trading Platforms

Robinhood is rolling out Robinhood Legend, a new (and optional) desktop platform for active traders. It’s got charts galore, plus intuitive ways to organize and visualize them. If you are considering Robinhood—or any other investment broker—you owe it to yourself to check out other platforms. The Cash Card also comes with 24/7 phone support, access to 90,000 fee-free ATMs, the ability to send checks, and no overdraft or monthly fees.

Market Cap History

Robinhood is very easy to use and its educational content is a joy to read. As a pioneer in making investing fun and accessible to beginners, it has inspired other brokers to improve their offerings for novices. Robinhood’s trading platform gets relatively high marks for its charting features, which allow customers to view technical indicators like moving averages. It also allows investors access to OTC stocks and IPOs, and allows trades any time between 8 p.m. Also, rising asset prices typically improve investor confidence, prompting traders and investors to increase their participation by placing new bets or engaging in more frequent trading.

Only Robinhood Gold members get access to the highest match bonus. Another content option from Robinhood is the Under The Hood podcast hosted by one of the co-founders. Additionally, the learning section contains more far-ranging articles on investing basics, market insights, and general knowledge-building material than previous versions. A new First Trade Recommendations feature was introduced in January 2022. The tool is designed to help new investors begin their financial journey. Content helping traders understand more advanced options trading strategies has also launched.

How do we review brokers?

Support for more sophisticated order types, like order-triggers-other (OTO) is important because they help traders navigate risk, quickly enter and exit positions, and take gains off the table. As a result, traders using conditional orders can spend more time analyzing the market and planning their next move without having to watch current trades as closely. This is another sign that Robinhood isn’t built for advanced traders. Options traders will only find that the app allows for stop, stop limit, and stop market orders, while equity traders can use market, limit, stop, stop limit, and trailing stop orders. Advanced traders will notice that conditional orders aren’t supported.

It scores slightly worse than Webull (1.5) and much worse than SoFi (4.6), two of its biggest competitors. Complaints address poor customer service and difficulty reaching out. Robinhood contract fees for futures and index options trading are also super competitive. If you trade with another broker, you may want to compare its per-contract prices to Robinhood’s. You may be able to cut fees in half by switching to Robinhood.

Many of Robinhood’s competitors have imitated elements of its app, and it’s easy to see why. It offers one of the smoothest and easiest trading experiences of any broker we review (although as we’ll discuss how to write rfp for software below, that ease-of-use may be a double-edged sword for some users). NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only.