Robinhood is an online investing platform that offers commission-free trading on a variety of US-listed investment types, as well as high-yield cash management, margin trading, and IPO investments. In this guide let’s have a look at how you can set up your account and sign up for the Robinhood app!
Robinhood Markets, Inc. is an American financial services firm based in Menlo Park, California, that is most known for pioneering commission-free stock, ETF, and cryptocurrency trading with a mobile app launched in March 2015. Robinhood is a FINRA-regulated broker-dealer that is also a member of the Securities Investor Protection Corporation. It is also registered with the US Securities and Exchange Commission. Interest gained on clients’ cash balances, selling order information to high-frequency traders (a practice for which the SEC started an inquiry into the firm in September 2020), and margin lending is the three primary sources of revenue for the company. As of 2021, Robinhood has 31 million authorized users.
Vladimir Tenev and Baiju Bhatt, who had previously constructed high-frequency trading platforms for financial institutions in New York City, established Robinhood in April 2013. The company’s name stems from its objective to “give everyone, not just the rich, access to the financial markets.” Brokerages charge “fractions of a penny” to execute a trade, according to Tenev, although they normally charge $5 to $10 each trade and require account minimums of $500 to $5,000.
The company debuted its application in front of the public for the first time at LA Hacks, then released it on the AppStore in December 2014 and formally launched it in March 2015.
Pros of Robinhood
- Trades in stocks, options, ETFs, and cryptocurrencies are all available for free.
- IPO investment is a possibility.
- Margin investing and fractional shares
- Accounts for cash management are offered.
- The website is simple to use.
Cons of Robinhood
- You are unable to move cryptocurrency into or out of your account.
- Doesn’t enable users to name beneficiaries or set up automatic transfers in the event of death.
- There are no mutual funds, retirement accounts, joint accounts, education savings accounts, or retirement accounts.
- Customer service hours are limited.
- Lack of investment research and trading tools; professional research is only available to Robinhood Gold members.
How to Sign Up Robinhood app?
The procedure of creating a Robinhood account is simple and takes less than five minutes. The following are the steps to creating a Robinhood account:
- Click “Sign up” on Robinhood.com or the Robinhood app after downloading and opening it.
- Click “Claim your free stock immediately” (Robinhood provides all new clients one free share of stock; once you’ve completed the signup procedure, you’ll be able to identify whose firm it belongs to).
- Fill up your name, email address, and a password.
- Fill in your contact information, including your phone number and address.
- Fill up your Social Security Number, birthday, and citizenship country.
- “How much investment experience do you have?” is a multiple-choice question.
- “Are you employed?” answer this objective-type question.
- Fill up your employment details.
- If you work for a publicly listed firm, indicate whether you are a senior executive or a 10% shareholder.
- Answer whether you or a member of your family works for a different brokerage.
- Select “Submit application” from the drop-down menu. (You’ll receive an email verifying your account within seconds and you’ll get authorised.)
- Connect your Robinhood account to a bank account (or choose to link one later). Once linked and financed, you’ll be able to trade up to $1,000 instantaneously.
That’s all, your Robinhood account is now set up and ready to use. You may now begin exploring and trading stocks of your preference!
Frequently Asked Questions (FAQs)
- Is Robinhood a secure platform?
Yes, Robinhood is a secure platform. The Securities and Exchange Commission (SEC) regulates Robinhood, and it is a registered member of the Securities Investor Protection Corporation (SIPC) and the Financial Industry Regulatory Authority (FINRA) in the United States.
- Is it true that Robinhood makes you money?
Holding dividend-paying stocks in your Robinhood portfolio can help you make money. However, keep in mind that you have the option of reinvesting your winnings into further shares. With the dividend reinvestment function available, this is simple to execute. You may earn compound interest by reinvesting dividends.
- What are the Robinhood charges?
It is completely free to create an account. There are no commissions on unlimited stock, ETF, option, and cryptocurrency trades. Trading gold starts at $5 per month if you wish to purchase and sell it.
- How can I use Robinhood to make trades?
Making a transaction on Robinhood is quite simple. Some call it gamification, while others just refer to it as a fantastic user experience. Market orders, limit orders, and stop orders are all available. Here are the easy steps to follow.
Enter the name of the firm you wish to invest in in the search area (touch the magnifying glass).
- Select “Buy” from the drop-down menu.
- Put the amount of money you wish to invest in the box below.
- Click the “Review” button.
- To submit, swipe up.
Active traders, day traders, and margin traders who wish to buy and sell investments without paying a fee should use Robinhood. If you want to invest in cryptocurrencies, the stock-trading brokerage may be a suitable choice for you.
That was all from our side. We hope that this article helped you to set up your Robinhood account and log in to the Robinhood app. Thank you for staying with us Till the end and we will catch you in the next one!