The most common question we get about brokers always revolves around Robinhood. It is one of the most popular trading apps and was a pioneer in delivering commission free trading to the everyday trader and investors.
Should I trade with Robinhood?
That depends on what your goal is. For example, if you know you are going to be swing trading, you will not need to worry about the Pattern Day Trader (PDT) rule. Robinhood is a great option for basic swing trading.
Not only can you buy shares on Robinhood, you can apply for Options trading. If approved, you are able to perform a variety of options trading strategies. They also offer trading cryptocurrencies on their platform. Recently, they added fractional investing, which lets you buy shares at a fraction of the cost.
While Robinhood may be good for the basic trader & investor, it lacks a lot of what an active trader would desire in a trading platform. As far as any sort of technical analysis using charting, you can count Robinhood App out. For charting, we recommend using TradingView.
The free version of Robinhood works well, but if you are looking to expand your trading ability, you might want to sign up for Robinhood Gold. This is a paid feature on Robinhood that goes for $5.00/month currently. There are other fees that revolve around paying interest if you are trading on margin, specifically 5% on the first $10,000 of margin or below. This is a great rate compared to other brokers such as, Fidelity at 9.825%, Charles Shwab at 9.825%, or TD Ameritrade at 10.75%.
Robinhood Gold allows you to trade on margin, meaning you can use additional buying power on top of your cash balance. With the margin, a Gold account also provides the ability to trade in the pre-market and after-hours markets. These are trading times that fall outside of the 9:30am – 4:00pm EST regular trading hours.
- Easy to use
- Makes options trading easy to understand
- Lacks insightful analysis
- Poor charting
- App has been known to crash and not allow access for periods of time
If you still have questions about trading with a broker like Robinhood, fill out the form below and we will get back to you as soon as possible!