Options can also be far riskier than investing in stocks, so it’s essential to understand how they work before trading them. They can experience broader, swifter price changes than stocks, making them appealing to people who want to earn big returns.

Options are volatile, complex securities. Robinhood lets its customers trade options without paying a commission. You can put as little as $1 into a security, even if a full share costs thousands. You can open a Robinhood account regardless of the amount of money you’re able to deposit.Īlso, you can invest in any stock you want without having enough to purchase a full share. No Minimums and Commission-Free TradingĬost is one of Robinhood’s biggest value propositions. Robinhood FeaturesĬustomers can take advantage of many features that Robinhood offers.

Robinhood also charges interest when you use margin. A $5 per month subscription gets you access to additional features and the option to invest on margin (borrowed money). Robinhood does charge for a service it calls Robinhood Gold. The company can make money in other ways. Robinhood doesn’t charge a commission when you make a trade, but that doesn’t mean that its services are too good to be true. Robinhood supports more than a dozen cryptocurrencies, including Bitcoin, Ethereum, Litecoin and Dogecoin. Robinhood also offers cryptocurrency trading for people who want to trade crypto.

You cannot purchase bonds, mutual funds or other types of securities. Specifically, Robinhood lets investors buy stocks, ETFs and options through their accounts. That means there are some restrictions on the investments you can buy through Robinhood. Robinhood is a cost-conscious brokerage company that keeps the investing process streamlined. You’ll also receive dividends from businesses that pay dividends to shareholders. You can sell the share for a profit or a loss if it changes in value. Like other brokerage companies, once you purchase shares in a business, you can hold those shares for as long as you’d like. However, with Robinhood, you can invest any amount in the company and buy less than a full share at a time. With most brokerages, you have to have at least $45 to buy shares in Coke, and you can only invest in $45 increments. For example, a share of Coca-Cola cost about $45 when this article was written. To explain, each company’s share has a price. Unlike some other brokerages, Robinhood does not charge commissions with each trade that you make.Īlso, Robinhood lets you purchase fractional shares in businesses. In particular, Robinhood enables you to invest in stocks, Exchange Traded Funds and options. Robinhood is a brokerage, which means that you can use the service to invest in securities. Robinhood is a mobile-based brokerage company that aims to make it easy for anyone to invest for free.

Is Investing with Robinhood a Good Idea?.

No Minimums and Commission-Free Trading.

Robinhood app safe