Where is the cheapest place to buy and sell stocks?
- They make money on un-invested cash that's sitting in your accounts (all banks do this)
- They offer Premium services that allow things like
How to get a Free Stock
- It's free!!!
- Super user friendly and easy to use
- It's all done on your smartphone
- You can buy a small amount of stocks - i.e. if you wanted to buy 1 stock XYX that cost $10 a typical brokerage would charge you about $7 just to make the trade, so obviously you wouldn't be purchasing smaller amounts of stock like that. With Robinhood, you don't have to worry about that.
- Integrates/uploads very nicely with tax services such as turbotax for easy to fill out taxes.
- It's all on their App - no desktop. Some people aren't comfortable with that, but most of the younger generation prefers that.
- You can't trade mutual funds, ETF's, options, etc.- just single stocks. However, you can still purchase small amounts of stocks so you can in effect create your own mutual funds.
- Customer Service is a little difficult to work with. It's done online and not via a phone number. For me this is the biggest disadvantage, but really not ever having to contact customer service.
- No access to advanced research, charts, etc. They do have information on stocks, but it's the basics so if you need more research you'll have to search it yourself.
If you've never invested in stocks, this is a terrific way to get started slowly. If you invest a lot, then this is a simple, free way to save money and continue investing.
Overall, Robinhood is a no-brainer for how you should be investing in SINGLE stocks. For mutual funds, indices, options, ETF's, then Vanguard or another brokerage is the way to go.