Robinhood Markets Stock Tips Review

Account Features and Services Offered

Robinhood users can invest in over 5,000 stocks, including most U.S. equities and exchange-traded funds (ETFs) listed on U.S. exchanges. Robinhood facilitates and simplifies the trading of over 600 stocks on foreign exchanges through the use of American Depositary Receipts. The company also offers options trading, which is less common among other stock tip apps and usually undertaken by more experienced investors. Options trading gives investors access to a wider range of investment strategies and may help them manage risk and expenses when added to a portfolio. Recently Robinhood added fractional shares to its lineup of investment choices.

Robinhood also supports trading on margin, which allows investors to purchase securities with funds provided by the company. Margin trades are loans made using the investor's accumulated stock assets as collateral. While margin trading offers the potential for larger wins, it also creates higher risk for investors. 

The Robinhood app does not support bond trading, which may be a drawback for more conservative investors or older investors who are transitioning to the relative safety of bond investing. Nor can you invest in mutual funds through Robinhood, which are often considered less-risky investment vehicles. On the other hand, Robinhood distinguishes itself by offering investors access to cryptocurrency exchanges, including Bitcoin, Ethereum, and Dogeco. Crypto trading is facilitated by a separate, affiliate company called Robinhood Crypto, LLC. You can buy and sell cryptocurrencies 24/7 via the Robinhood app.

Fees

Robinhood publishes a detailed fee schedule on its website. The app provides one excellent benefit when compared to investing through a traditional brokerage account: Robinhood customers can make unlimited commission-free trades in stocks, options, ETFs, and cryptocurrencies. But investors should review Robinhood's fee schedule carefully. It is rather complicated, with different fees applying depending on what and how much you are trading. If you select the company's Gold plan, for example, you are afforded the instant opportunity to trade on margin and are given access to higher-level investment research. But the company does assess fees and interest on margin balances over $1,000.

You can open and maintain a basic Robinhood investment account with no minimum balance. This provides users the opportunity to explore the app for a while before making a significant financial commitment. The company charges no annual or inactivity fees with its basic account. 

Customer Experience

Robinhood's online interface is simpler than its mobile app, which provides users a wider variety of analytic tools and access to news from highly-regarded financial publications such as the Wall Street Journal and Barron's. Gold plan subscribers may consult additional resources including Morningstar and Nasdaq Total View. The app allows you to schedule customized alerts.

You can apply for and be approved to open an account using Robinhood's mobile app, at which point you can begin transferring funds to your account. Transfers of $1,000 or less are instant. Timing is often critical in trading and Robinhood's speedy provision of services can be an asset to investors seeking to jump on an opportunity.

Robinhood publishes a variety of educational materials on its website on topics ranging from investment basics to up-to-the-minute news. The company's blog comprises a veritable dictionary of investment terms and provides very detailed definitions to help you understand fundamental concepts of trading. Once you begin using the app, you can set up news alerts at a pace that suits your preferred level of oversight and activity.

Reputation and Accreditation

Robinhood receives an F rating from the Better Business Bureau. In 2019, the company consented to a million dollar-plus judgment (without admitting guilt) in a case brought against it by the Financial Industry Regulatory Authority (FINRA). The case involved Robinhood allegedly performing insufficient oversight of the brokerage firms that execute trades for the company. Consumer reviewers on Trustpilot give Robinhood 1.9 stars—not a stellar rating. In the past year, over 400 complaints about Robinhood have been registered with the SEC. Many appear to relate to customer service issues. The company does not provide users with a customer service telephone number, which can seriously slow down the resolution of problems and may result in missed opportunities and financial losses. These actions may give users pause.

The Robinhood app itself fares much better in consumer reviews. Android users award the app 4.3 stars. iOS users give it a near perfect score of 4.8 stars. We noted that Robinhood responds to consumer reviews, both positive and negative, and we give the company points for that.