WealthRocket is reader-supported. When you buy through links on the website, we may earn an affiliate commission.

Robinhood Review 2023

padlock icon

Why you can trust us

The team at WealthRocket only recommends products and services that we would use ourselves and that we believe will provide value to our readers. However, we advocate for you to continue to do your own research and make educated decisions.

You’ve likely heard the tale of Robinhood, the beloved outlaw who frequented Sherwood forest, stealing from the rich and giving to the poor. As it was, this hero outlaw’s namesake app also has a bit of a legendary reputation.

Robinhood was one of the first investment apps to offer commission-free investing, making it an early fan-favorite among investors. Learn how this app works, its pros and cons, and how it allows for fractional investing in our Robinhood review.

What is Robinhood?

Robinhood is an investment app that allows users to trade ETFs, stocks, options, and cryptocurrency, all without paying commission or fees. It has a simple, easy-to-use design, and is mobile-first, meaning, it was intended to be used on your phone or tablet. It is available on iOS and Android.

There is no account minimum with Robinhood, and the absence of fees makes it a favorite amongst the millennial set. It was also one of the first online brokers offering free trades without fees and commission, though others have since started to offer this service. Copycats! But perhaps this investment tool’s best features are that it allows users to make fractional trades—in other words, making trades of less than one full equity or share. But more on that later.

How It Works: No Outlaw Experience Necessary

Get started with Robinhood by downloading the app. Open your account by inputting your personal information, from your email to your name, phone number, birthday, Social Security number, even a copy of a photo ID. The app will also ask you questions about your investing experience and your employer. You’ll also need to link your bank account in order to make trades via your Robinhood account, then fund your account. It’s super easy to add a nominal amount to your account. Think $5 or $10.

Once your application is approved (and this may take a few days – Rome wasn’t built in a day. Or maybe it was? We weren’t there.), you can start buying and selling stocks. When purchasing a stock, Robinhood complies a lot of information for you, from a stock’s price over time to recent news stories pertaining to the company, analyst ratings, and earnings. Then you have the option to purchase the stock instantly or place an order for a certain price. If your price is met, then you can set up the app to automatically purchase the stock on your behalf. You can also add certain stocks to your watchlist via the app.

Robinhood Pros & Cons

One of the best features of Robinhood is that it’s essentially free trading, i.e., no fees or commissions on trades. While Robinhood is no longer the only online brokerage to offer this, it’s still a solid contender in this aspect.

Pros

  • Robinhood allows for fractional trading. This is a good thing because it allows beginner investors or those without a lot of capital to get their foot in the door with stocks they may not otherwise be able to afford.

  • Robinhood also allows for cryptocurrency trading in small amounts, another key for novice investors.

Cons

  • It’s not meant for seasoned or experienced investors, as its tools and resources may be too simple for the advanced set.

  • It also does not allow for trading of all securities, for example, mutual funds and bonds are not able to be traded via Robinhood.

  • Robinhood only supports taxable accounts and lacks phone customer support.

Fractional Cryptocurrency Trading

We’ve already talked about how Robinhood allows for fractional trading, a boon to new investors. But the app’s approach to both fractional and cryptocurrency trading is where it really shines.

Robinhood is one of the few online brokers that allow for cryptocurrency trading. Sure, allowing for fractional trading of those securities can help investors purchase securities they may not otherwise be able to afford, but it also helps spread the risk when investing in sectors like cryptocurrency, which is notoriously risky. We’d be remiss if we didn’t include this in our Robinhood review even though crypto may not be on your radar quite yet.

You don’t need to steal from the rich to feed the poor with Robinhood’s investment tools. Instead, you get an easy-to-use platform to grow your investment portfolio that even the mega-cheap Sheriff of Nottingham would approve of. Seriously, the guy’s a miser.

Frequently Asked Questions

Related Articles

Young woman comparng Tgangerin and Wealthsimple banking

Wealthsimple vs. Tangerine Review 2023

Craig Sebastiano August 28, 2023

Read more
Young woman investing using Wealthsimple and Nest Wealth

Wealthsimple vs. Nest Wealth 2023

Rachel Cribby January 4, 2023

Read more
Female investing using Wealthica

Wealthica Review 2023: Portfolio Tracking

Candice Reeves August 28, 2023

Read more
QTrade Logo

Qtrade Review 2023

Rachel Cribby November 1, 2023

Read more
Young woman using Nest Wealth to Invest

Nest Wealth Review 2023

Jordan Lavin August 28, 2023

Read more
Male using M1 Finance to Invest

M1 Finance Review 2023

Maya Reynolds September 1, 2023

Read more