In today’s world, it has become quite easy to invest in stocks, thanks to the rapid advancement of technology. Gone are the days when you would have to call your brokerage and ask them to invest in the company of your liking. Everything can be now done right at your fingertips; you have access to all the market data you can possibly need, and you can buy and sell stocks with just a click. However, one thing still hasn’t changed – brokerage fee. A vast majority of brokerages require you to pay a commission for every order they execute. But with Robinhood now in the game, this is going to change as well.
Robinhood is a brokerage firm that was founded back in 2013 with a killer idea – charge no commission or fees for any trading order executed, regardless of the quantity. Needless to mention, the response to the company was overwhelmingly positive and as of April 2017, the company’s valuation was close to $1.3 billion.
You can now purchase any stock you please or invest in any Exchange-Traded Funds listed on the U.S stock exchanges, without having to pay a brokerage fee. Yes, that’s right! You can purchase stocks worth $500 and your brokerage fee would still be $0. Furthermore, you are not required to maintain a minimum balance in your account.
Another great thing about Robinhood is that it has been designed primarily for mobile users. Even though they do have a web-based platform, it is on your mobile that you can truly make the best of Robinhood. Simply head to Google Play Store or Apple App Store to download the app.
After downloading, you need to sign-up using your email and password. Once your account has been created, you can link your bank account and transfer funds easily. You are now set to begin trading.
Trading on the Robinhood app is an effortless process. Simply search for the company you are looking to invest in and purchase the shares. In addition to this, you can also see the recent news of your stock’s company and use this knowledge to plan your investing strategy. You will also get updates on the companies listed in your portfolio and watchlist. However, this, in turn, can be customized in the app settings.
However, this $0 commission comes at a cost – Robinhood does not offer extensive market research and data offered by every other major brokerage. Nonetheless, it is a small price to pay for zero brokerage.