Using a Robinhood App makes trading stocks, crypto and easier, but it is also controversial. Robinhood is an online trading platform established in 2013.
It offers unlimited commission-free trading. After featuring the easy-to-use app, it became the trading platform of choice for the millennial generation.
Read on this article to get some major information about the Robinhood App, and how to register.
This platform makes trading easy to invest in financial markets. All required of the user is to have a bank account with a little as $1 to begin a trade in minutes.
Robinhood is not the only online trading platform without a commission. But it is one of the first to require no minimum account balance.
It also features fractional shares which means you can invest any amount you want as you want in a company regardless of its share price. And allow you to trade options contracts and cryptocurrency.
Robinhood Account Setup
Here is how to register and get an amount on the Robinhood platform:
- Enter the URL Robinhood.com or download the Robinhood App.
- Tap on Sign up.
- Then tap on Claim your free stock now.
- Enter your name, email, password, phone number, address, SSN, birth date, and country.
- Give answers to some Robinhood questions.
- Enter employment information.
- Answer the other Robinhood questions.
- Tap on a submit application.
- Verify your account by tapping on the link sent to your mail.
- Link your bank account to the Robinhood platform.
Then you can begin trading for as low as $1 to $1000 on the Robinhood Platform.
What can be invested on Robinhood
This platform allows users access to invest in stocks, Exchange Trades Funds (ETFs), options, gold, and cryptocurrency.
Registering an account is free. Users are offered a commission-free trading experience. If buying and selling fold, it begins at $5 per month to trade.
How to Trade in Robinhood
This is easy to operate. Users can market orders, limit orders, and stop orders while trading on this platform. Here are steps to trade:
- Tap on magnifying glass icon (search field).
- Enter the name of the company you want to invest under.
- Tap on Buy.
- Enter the amount you want to invest.
- Then tap on Review.
- And swipe up to submit.
Your trade will be made.
Is Robinhood App safe?
Yes, Robinhood is safe and secure. Like its competitors, Robinhood is regulated by the Securities and Exchange Commission (SEC).
And it is considered a registered member of the Securities Investor Protection Corporation (SIPC). As well as the Financial Industry regulatory authority (FINRA) within the United States.
How does Robinhood gain
If using Robinhood doesn’t cost you a penny, how does it make money? Robinhood has three main ways it makes money.
Firstly, it is by collecting rebates from market makers, who are the entities that execute your trades on the exchanges.
The second is stock loan income — Robinhood earns money from lending stocks purchased on margin (by users but with Robinhood’s money) to counterparties.
The third is by borrowing uninvested take advantage of users’ accounts and depositing it in interest-bearing bank accounts.
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