If you haven’t heard of Robinhood yet, you most likely know about it now as it’s been all over the news. With over 13 million users, the app has taken off in popularity since it first started just five years ago.
Robinhood is a commission-free stock trading and investing app that allows you to invest in stock, cryptocurrencies, and ETFs as frequently as you want.
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What is Robinhood?
Robinhood is a free trading app that is widely known for being commission-free. The Robinhood app has a clean and simple userface making it a great option for beginner investors.
With Robinhood, you can invest any amount of money, build a balanced portfolio, and trade in real time. Not only that, Robinhood also has tools to help you learn about investing in financial markets. Robinhood’s goal is to make investing more affordable, intuitive, and fun.
P.S. Click here to get a free stock. You don’t need any money in your account to get your free stock, so it’s simple to get started!
Here’s a look inside my Robinhood app dashboard.
Requirements to become a Robinhood investor
- 18 years or older
- Have a valid social security number
- Have a legal U.S. residential address within the 50 states or Puerto Rico
- Be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa
Who should use Robinhood?
Robinhood is appealing to young, beginner investors because of their easy userface and commission-free structure.
However, if you’re looking to build long-term wealth, you may want to contribute to your employer-sponsored-plan to make good use of the potential match benefit.
A Roth IRA is another great option for those looking to build long-term wealth. A Roth IRA gives you tax advantages and is great for building a diversified portfolio. Betterment can help find the right IRA for you.
How to open a Robinhood account
- Get a free stock and get started here.
- Receive an email within one trading day confirming if your application’s been approved.
- Robinhood may request a document to verify your identity.
In case you’re new to investing, let’s get some of the basics out of the way.
What is an investment?
An investment is an asset bought that may increase in value over time. The hope is that the investment will generate income or profit.
What is a stock?
A stock is a unit of ownership in a company.
What is the stock market?
The stock market is where buyers and sellers trade shares in companies.
Why should I invest?
Investing is recommended for various reasons but most importantly because you can build more wealth by investing vs. saving (depending on how you invest).
What should I do before investing?
You should think about paying off high-interest debt (such as a credit card) before investing. Here’s a step-by-step guide to pay of high interest debt.
You may want to think about creating an emergency fund if you don’t have one already. Your emergency fund should have about 3-6 months of your monthly expenses before investing. Find out how to start an emergency fund here.
Investments You Can Make in the Robinhood App
You have the option of investing in over 5,000 stocks with Robinhood.
Robinhood currently supports the following assets:
- U.S. Exchange-Listed Stocks and ETFs
- Options Contracts for U.S. Exchange-Listed Stocks and ETFs
- ADRs for over 650 Globally-Listed Companies
Robinhood App Features
- Commission-free stock trading
- No account minimum
- Helpful information
- Account protection
Commission-free stock trading
You can invest as little or as much as you would like in thousands of US and global stocks without paying commission or foreign exchange fees.
No account minimum
Get started at your own pace – with as little or as much as you’d like.
Stay on top of your portfolio with real-time market data, business news, and customized notifications.
Robinhood Financial LLC is a member of SIPC. Securities in your account protected up to $500,000.
How To Earn Free Stock
If you have a positive experience with Robinhood, you have the option of referring others to the Robinhood platform. For every person you invite that joins, you’ll both be rewarded with a free stock.
You can receive up to $500 in reward stocks each calendar year.
Make sure to take advantage of the free stock here. A surprise stock lands in your account once you sign up for Robinhood. You don’t need any money in your account to get your free stock.
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- How To Make Money Trading Stocks With The Robinhood App
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