If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Robinhood was founded to help provide everyday people with easy access to the financial markets and pioneered the concept of zero-commission stock trading upon its 2015 launch.
However, there's a lot more to Robinhood than just commission-free trading. In this Robinhood review, we'll take a closer look at this investment platform, fee structure, and the pros and cons investors should know about before deciding to use Robinhood for their brokerage needs.
With no commission fees, access to trade fractional shares, and many investment types, Robinhood's high-quality app trading platform is best suited for beginner investors wanting a solid place to invest on the go.
$0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold
$0
Earn an uncapped bonus
On Robinhood's Secure Website.
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
Robinhood is well known for its abundant fee-free services, such as commission-free options and cryptocurrency trading that most other brokers charge for. However, it does offer an optional premium platform known as Robinhood Gold.
Robinhood Gold offers some benefits that can make the $5 monthly cost well worth it. Robinhood Gold customers get a significantly higher interest rate on uninvested cash (5% versus 1.5%, as of February 2024), which can justify the cost all by itself for investors who keep lots of cash on the sidelines. Robinhood Gold customers also get higher instant deposit limits, $1,000 of 0% interest margin, access to Morningstar stock research and Level II market data, a 1% match on taxable brokerage deposits, and a 3% match on IRA contributions (1% for non-members).
Gold members can apply (and possibly be approved) for the Robinhood Gold Card, a credit card exclusive to Robinhood Gold members. Users get 3% back on everything. It's worth considering if you're a Robinhood user, especially if you find value in Robinhood Gold independent of the card.
Robinhood Gold is a $5 per month subscription add-on for users of the Robinhood investing app and delivers excellent value. Subscribers receive Robinhood’s highest savings rate on uninvested cash, access to professional investing research, higher deposit limits and 3% match on Robinhood retirement IRA contributions.
$5 monthly or $50 yearly
N/A
Get a 3% match on IRA contributions each year with Robinhood Gold
On Robinhood Gold's Secure Website.
This stock broker is a fit for: Investors seeking a mobile app to invest in stocks, ETFs, options, fractional shares, and (through Robinhood Crypto, a separate but related entity) cryptocurrencies, or to open an IRA. Investors needing to buy mutual funds will want to look elsewhere.
For current promotions, check out our list: Robinhood Promotions
Here at The Motley Fool Ascent, we pride ourselves as real users of most of the products across our site. Writers Cole Tretheway and Brittney Myers use Robinhood -- here are their experiences:
My favorite feature is access to all your notifications in one place. These include buy/sell requests, buy/sell completions, shareholder updates, and Robinhood app updates. Less fun, it also includes things like margin call warnings. Robinhood feels video-gamey in a good way.
Of all the investing platforms I've used, few are as easy to navigate as Robinhood, and that goes for desktop and mobile app platforms alike. It's simple to make trades and manage my accounts whenever or wherever the need arises. Robinhood is my go-to place for my recreational investing hobby.
Robinhood is one of our favorite brokerages. It ranks among the best brokers we've seen in these categories:
Robinhood is best known for pioneering the idea of zero-commission stock trading. While most other top brokers have followed suit, Robinhood still has a favorable fee structure. For example, in addition to not charging flat commissions on options trades, Robinhood doesn't impose a per-contract charge either. That's something that many of the best options platforms still do.
Robinhood's mobile interface is sleek, and its desktop interface is likewise easy to use. As of March 2024, Robinhood has begun rolling out updates that let users further customize their mobile app dashboard. Users can add widgets to easily track specific stocks, for example.
Traditionally, if a stock was trading for $500 per share, you needed to have at least $500 to invest in it. Robinhood lets investors buy fractional shares of thousands of stocks, even if they have only $1 to invest. This can be an incredibly valuable tool -- it lets you put 100% of your money to work and helps create a diversified portfolio without a ton of investment capital.
Robinhood now offers IRA investing for its account holders, and it doesn't stop there. Robinhood matches 1% of every dollar on all IRA contributions for all members, and 3% for Robinhood Gold users. The match will be available around the same time as your deposit, according to Robinhood, and the match doesn't count toward your annual contribution limits.
If you're interested in cryptocurrencies, Robinhood could be a great choice for you, as Robinhood offers cryptocurrency trading through its Robinhood Crypto service. Customers can buy and sell Bitcoin, Ethereum, Litecoin, and other cryptocurrencies any hour of the day. As of May 2024, there are 15 different cryptocurrencies available on Robinhood. Robinhood is one of the few brokers that allows users to invest in stocks and cryptocurrencies on the same platform and one of the few to offer no-commission crypto trading.
Once you verify your identity and activate two-factor authentication on your Robinhood account, you can withdraw and deposit cryptocurrency assets, with a limit of $5,000 or 10 total transfers within a 24-hour period.
Some cryptocurrency platforms only allow you to make immediate trades, but with Robinhood Crypto, you can use a limit order to set the price at which you want to buy or sell.
Robinhood has updated its margin rates to be hyper-competitive. Frankly, they're some of the best rates in the industry as of writing. Though we at The Ascent don't encourage high-risk margin trading, if you're going to do it, Robinhood is now one of the best places for it.
You can trade some Robinhood stocks 24 hours a day, five days per week, from Sunday 8 p.m. EDT to Friday 8 p.m. EDT. That's ideal when you want to make a purchase during off hours, or when you trade outside the U.S. However, there are limitations. Less trades made after-hours means less liquidity and less predictability when selling stocks. But it's a feature that most stock trading companies don't offer, and additional flexibility is a good thing.
While Robinhood is known for being the "no fee" brokerage, the company does have a premium product known as Robinhood Gold. Gold members get the following benefits for a monthly cost:
Users who anticipate sticking with Robinhood for years might find value in the paid subscription. This is especially true if you max out your annual IRA contribution limit or hold big dollar balances in your Robinhood brokerage account.
TIP
We’ve found one company that’s positioned itself perfectly as a long-term picks-and-shovels solution for the broader crypto market — Bitcoin, Dogecoin, and all the others. In fact, you've probably used this company's technology in the past few days, even if you've never had an account or even heard of the company before. That's how prevalent it's become.
Sign up today for Stock Advisor and get access to our exclusive report where you can get the full scoop on this company and its upside as a long-term investment. Learn more and get started today with a special new member discount.
Robinhood's platform doesn't support mutual fund and fixed-income investing, a rarity among major brokers. You can certainly invest in bonds through exchange-traded funds (ETFs) with Robinhood's platform, and many mutual funds have ETF alternatives, but you can't buy individual bonds or mutual funds.
Robinhood's platform was designed to be a simple, no-frills investment experience. However, if you want access to stock research or an advanced trading platform, you may want to look elsewhere. Robinhood Gold members get access to professional research reports from Morningstar, but this is a paid feature, while many competitors offer stock research to everyone.
Robinhood's claim to fame is its no-commission approach to trading, so this section shouldn't be too much of a surprise. The platform charges zero commission fees for stock, exchange-traded fund (ETF), cryptocurrency, and option trades placed through its app or website.
Stocks and ETFs | Stock options | Cryptocurrencies | Mutual funds |
---|---|---|---|
$0 | $0 (no per-contract charge) | $0 | Not offered |
While most of the brokers who have dropped their standard stock trading commission have also dropped the base commission on options trades, a lot of them still charge a small per-contract commission. Robinhood allows traders to buy and sell as many options contracts as they want with no commissions at all. Commission-free cryptocurrency trading is also rare among brokers, as well as pure cryptocurrency exchanges.
To be perfectly clear, Robinhood doesn't charge commissions for stock, ETF, and options trades placed through its online and mobile platforms. However, that doesn't mean Robinhood is completely fee free; there are some things you might still have to pay for. Here are a few of the more common charges you might face:
Since Robinhood offers zero-commission stock trades, this also means that you can trade ETFs commission free.
However, Robinhood doesn't currently offer mutual fund trading at all, which is a big negative differentiator from many of its competitors. While it may integrate mutual fund capabilities into its platform someday, for the time being, it's not possible to buy shares of your favorite mutual funds through Robinhood.
LEARN MORE: How to invest in mutual funds
Robinhood Crypto offers 15 cryptocurrencies on its platform, which is not on par with some of the major cryptocurrency exchanges but would work well for new crypto investors who want some exposure to digital assets. After all, most brokers don't facilitate cryptocurrency trading at all. Crypto clients can place market or limit orders with zero commissions, and Robinhood's crypto security features are in line with other major cryptocurrency exchanges.
Robinhood has updated its margin rates. Rates are more competitive for free and paying users, and Robinhood offers you discounts when you borrow more. Robinhood Gold users borrow the first $1,000 with a 0% interest rate. It's also worth mentioning that you'll need $2,000 in your account to use margin. This is a regulatory requirement that applies to all brokerages, not just to Robinhood.
Amount borrowed | Interest rate |
---|---|
Up to $50,000 | 6.75% |
$50,000 up to $100,000 | 6.55% |
$100,000 up to $1 million | 6.25% |
$1 million up to $10 million | 6.00% |
$10 million up to $50 million | 5.95% |
$50+ million | 5.70% |
For much of its history, Robinhood was a trading app, and a leading one at that. Customers who value simplicity love Robinhood's trading platform. But beyond the app previously, there wasn't much of a functional web portal.
That's changed, as Robinhood has rolled out expanded capabilities through the web version of its platform. Both the web portal and mobile app versions are simple in design and are intended to be easy to learn and use.
Robinhood offers many free educational articles on the Robinhood Learn website, but advanced research is gated behind the Robinhood Gold subscription, and it may not be as thorough as what many full-service brokers offer.
Beginners: Robinhood offers a significant amount of how-to articles on Robinhood Learn. It's a great place to search unfamiliar investing terms in plain English. New investors may find it useful for picking up the basics, and there's plenty of content that breaks down advanced concepts like options trading.
Advanced users: The standard (free) Robinhood platform is light on several features, and equity research is one of them. In fact, the only research offered on the Robinhood app is available only to its premium Robinhood Gold customers who have access to stock research reports from Morningstar. If you want access to stock or crypto research from several different firms, Robinhood likely isn't the best choice for you.
Robinhood has significantly improved its customer service since we first reviewed it. You can email customer service or get help via 24/7 live phone or chat support.
Robinhood was founded in April 2013 by Vladimir Tenev and Baiju Bhatt, aiming to democratize investing and "provide everyone with access to the financial markets, not just the wealthy."
Its popular trading app launched in March 2015, and it became one of the first firms to offer stock trading without commissions. More than 800,000 people were on the waitlist for the app when it launched, including many millennials attracted by the elimination of commission fees and the lack of a minimum balance requirement.
In 2018, Robinhood expanded its appeal by adding cryptocurrencies through its Robinhood Crypto platform, again leading the way among mainstream brokers to become one of the first to offer an easy way to buy virtual coins -- without transaction fees.
In 2021, Robinhood went public in one of the year's most anticipated IPOs and now trades under the ticker HOOD. As of 2023, more than 10 million people use Robinhood as their primary brokerage.
Robinhood has been the subject of controversy numerous times. While these issues are important for Robinhood to navigate and important for investors, we do believe Robinhood is a solid broker to consider, which is reflected in our overall rating.
Here are some of the serious issues that have arisen:
To be fair, Robinhood has done an excellent job of learning from these incidents. For example, it has done a good job of building its educational library and adding features for long-term investors, such as the availability of IRA investing.
In any combination of the below scenarios or for individual needs, Robinhood is a solid pick.
LEARN MORE: How to Open a Robinhood Account
Wondering how Robinhood stacks up to the competition? Check out our reviews:
At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
See our full methodology here: Ratings Methodology
Robinhood is a user-friendly broker with minimal fees, but it isn't right for everyone. For one thing, it doesn't offer mutual fund investing, nor does it give standard members access to any stock research reports. Also, it doesn't offer any account types beyond standard brokerage accounts and traditional and Roth IRAs.
Robinhood facilitates cryptocurrency trading on its platform, and there are currently 15 different digital assets available, including Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Litecoin, and Stellar Lumens. Plus, Robinhood is one of the few places to buy and sell cryptocurrencies without commissions.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
E*TRADE services are available just to U.S. residents.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.