One of the biggest steps one has to take in the world of investing is simply getting started. Hesitation and anxiety can often prevent one from making this first step and trust me, I know how that feels.
With such a vast collection of information available to everyone in this modern era, it can be overwhelming and stressful to decide how much to invest, where to invest it, and how to invest.
Vlad Tenev & Baiju Bhatt, the two Stanford University graduates who founded Robinhood, understand this stress too. Eliminating the fees and hassle associated with investing is their company’s mission. Robinhood started as a mobile application for both iOS and Android, however their service is now offered via their website as well.
What sets Robinhood apart from other brokerages is that all trades are entirely commission-free, meaning it costs nothing to purchase a stock outside of the actual stock price. This in itself removes a lot of the anxiety around investing. The following chart illustrates how Robinhood compares to other brokerages:
The benefits are pretty clear… however you may be thinking: “Surely there must be a downside to this company!” Just like everything in life, Robinhood is not perfect.
One downside to investing with Robinhood is the lack of additional features that experienced investors may find useful. For example, a lot of brokerages will offer a Dividend Reinvestment Plan (DRIP), which automatically reinvests any cash earned from dividend stocks. This feature is not available with Robinhood, so users must manually reinvest earnings if they wish to do so.
Experienced investors may also dislike the limited trading options of Robinhood, as they currently do not offer the ability to buy options or invest in mutual funds.
In our opinion, these limitations do not at all detract from the value of the commission-free trading that Robinhood allows. If you are someone who is first stepping into the world of investing, this is the perfect way to get your feet wet.
Also, Robinhood is an SEC registered broker-dealer and member of FINRA & SIPC. (Meaning it is not a scam.)
To get started and also receive a FREE stock on us, use our link to get started with Robinhood:
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