With zero account minimum and commission-free trading, Robinhood has made the financial market more accessible to every individual who wants to dabble in trading. Through Robinhood’s simple, intuitive interface, even newbies to trading will not feel overwhelmed with what is otherwise an expensive and intricate system. Among Robinhood’s products are crypto, ETFs, and options, but those who want to invest in bonds and mutual funds might want to look at other online brokers. Having said that, is Robinhood for you? We roundup up the most helpful Robinhood Reddit reviews to determine whether it’s still a worthwhile trading and investing tool.
Robinhood Reddit Review: The Pros & Cons
In a nutshell, Robinhood is an excellent entry into the world of trading, but it has its limitations.
Throughout the article, we’ll discuss the Robinhood reviews from Reddit in more detail, but meanwhile, here’s a quick run-down of the pros and cons of using Robinhood for investing and trading:
Pros:
- Trading is completely free
- Robinhood’s interface is simple and straightforward
- There’s no minimum account balance
- Robinhood offers cryptocurrency trading
Cons:
- Customer support is only available through email and chat
- There’s not a lot of market research and data available through its platform
- Mutual funds and bonds are not offered
- It can be tempting to trade recklessly as it’s commission-free
The Pros
Robinhood neither charges commission nor requires an account minimum. Its platform is beginner-friendly as well.
Its intuitive user interface reflects Robinhood’s commitment to keeping its platform simple and focused. Users who are new to Robinhood will not feel perplexed, thanks to its easy set-up and user-friendly app and web platforms. “Robinhood has a quick, easy interface with big buttons [that are] great for beginners like me,” shares Redditor Pumpkincustard. Setting up your account is a breeze and Robinhood promises its account approval only takes an hour or so. An extra 10 or 20 USD in your bank account will allow you to start trading right away. If you’re interested in cryptocurrency trading, Robinhood is a good place to start that, too.
The Cons
The lack of phone support puts off the more serious traders and investors, and if you want to more extensive research and information on specific markets, you’ll have to do it outside of Robinhood
This sentiment is shared by many Redditors as Robinhood only offers email and chat support. Phone support makes heavy investors and traders feel more secure than merely exchanging emails. Having said that, most casual investors find email support sufficient for their needs.
Lack of Extensive Research Tools
Robinhood is also lacking when it comes to its available research tools. Most Reddit reviews on Robinhood say that the majority of investors do their research outside of the platform. Redditor Walden_Walkabout ends his Robinhood review with the following:
To address the lack of research tools and still benefit from Robinhood’s commission-free trading, some investors access their research from bigger brokerages. “Robinhood’s research tools are lacking to non-existent. I use the extensive research tools from my other brokerage account, but execute the trades on Robinhood for the fee-free transactions,” suggests Redditor PhysicistInTheGarden.
Something Reddit users warn those who are looking into investing and trading through Robinhood is the temptation to buy high-risk investments carelessly because trading is free. As Robinhood user and Redditor bms0430 observes:
Verdict
While it has its limits, Robinhood remains a brilliant choice for those who want to wet their toes in investing and trading, or experienced investors who prefer commission-free trading
Robinhood is highly-recommended for light traders or those who want to get into the world of trading but don’t want the higher risks and complicated processes that typically come with it. It has never been easier to set-up an account, thanks to Robinhood’s no account minimum requirement and attractive commission-free trading. On top of that, Robinhood’s interface is intuitive and is one of the most beginner-friendly platforms available today.
Heavy investors, however, require more support than what Robinhood currently offers. In addition, more experienced traders find the need for more extensive research tools that help them to make informed investments. If you’re only beginning, Robinhood is a great way to start. Once you get more experience with trading and investing, it’s recommended that you look at another broker with better research tools that you can use with Robinhood.