Robinhood Review [2024] App Reviews

The value of the U.S. stock market has tripled over the last 20 years. So, if you’re thinking about investing, now might be a great time.

Robinhood is a financial services company where you can invest in stocks, exchange-traded funds (ETFs), and crypto all in one place. With its easy-to-use app and 24/7 customer support, it’s often rated as one of the best online brokers. 

In this Robinhood review, we’ll take a closer look at the platform overall and weigh the pros and cons to help you decide if it’s the right investing platform for you.

What Is Robinhood?

Robinhood is an investment app that lets you trade stocks, ETFs, and cryptocurrencies without paying commission fees. 

Founded in 2013, Robinhood aims to make investing accessible to everyone. And the platform really took off during the COVID-19 pandemic because more people started investing from home.

Robinhood also offers retirement accounts like traditional and Roth IRAs (individual retirement accounts), making it a great tool for both everyday trading and long-term financial planning.

With its focus on simplicity and accessibility, Robinhood has opened up the world of investing to a broader, younger, and more tech-savvy audience. 

Keep reading this Robinhood review to learn more.

Is Robinhood Legit?

So, is Robinhood legit? 

My answer to that question is, “Yes! Robinhood is definitely legit.” 

Here’s what makes me so sure:

• Robinhood is a member of the Securities Investor Protection Corporation (SIPC), protecting up to $500,000 in securities and $250,000 for cash holdings.
• As a registered broker-dealer, Robinhood is regulated by the U.S. Securities and Exchange Commission (SEC).
• Robinhood provides extra protection with an additional insurance policy covering up to $1.9 million for cash and $50 million for securities per customer account.

For these reasons, I’m confident that Robinhood is a legit choice for investors looking to streamline their investments.

Here’s Robinhood’s CEO discussing the company’s financial results for the first quarter of this year.

Is Robinhood Worth It?

Robinhood is a solid option for new investors because it’s easy to use and doesn’t charge commission fees. 

However, it’s important to be aware of a few things.

The Robinhood platform makes trading feel almost like a game, which can lead to frequent buying and selling of stocks. Active trading can be risky and isn’t usually recommended for most people — especially beginners. Experts often suggest a more relaxed approach, like buying and holding low-cost index funds to grow your wealth over time.

So, if you’re into active trading, like using an app to conduct your trades, or want to trade cryptocurrencies, Robinhood might be a good fit for you.

But if you prefer a long-term investing approach, other brokers might be a better fit. And since many brokers now offer commission-free trading, you’ll have plenty of options to choose from.

How Does Robinhood Work?

Robinhood makes investing easy and accessible. 

Upon writing this Robinhood review, here are the basic requirements I found for anyone who wants to start using the Robinhood platform:

• Be 18 or older
• Have a valid Social Security number (SSN)
• Have a legal residential address within the U.S.
• Be a U.S. citizen or permanent resident or have a valid U.S. visa.

If you fit those requirements, then the first step is to download the Robinhood app or visit the official Robinhood website. You’ll be asked to provide some basic information so Robinhood can verify you meet the requirements to sign up.

Once your account is approved, you can link your bank account. This lets you transfer money in and out of the Robinhood app whenever you need it.

Next, you’ll need to decide if you want to trade stocks, ETFs, options, or cryptocurrencies. Robinhood gives you real-time market data so you can make informed decisions.

Then, you’ll select the asset you want to invest in, enter how much you want to invest, and choose your order type, like market order (immediate transaction) or limit order (delayed transaction waiting for a certain price). You can even buy fractional shares, so you don’t need a lot of money to start.

And if you want to sell, just go to the asset’s page, hit “sell,” and choose whether you want cash put back into your account or to invest in another asset.

There are some additional features worth mentioning, too. For a monthly fee, you can get Robinhood Gold, which offers perks like margin trading, bigger instant deposits, and professional research reports.

Robinhood also offers traditional and Roth IRAs with a 1% match on contributions (the match increases to 3% with a Robinhood Gold subscription).

So Robinhood is a great way to start investing, especially for those of you who like active trading. 

And if you’re looking for more ways to earn money from home, check out how to make money while on disability.

What Is The Catch With Robinhood?

The real “catch” this Robinhood review uncovered is that Robinhood makes money by routing your trades to market makers, which doesn’t always give you the best prices on investment assets. Additionally, some users report that customer support can often be difficult to reach.

Is Robinhood Safe?

Yes, Robinhood is safe to use. 

With about 10.9 million active monthly users, Robinhood is quite popular. However, Robinhood has faced issues in the past for things like misleading information and technical outages. But Robinhood claims to have since improved its security and customer support.

Robin Hood is also a member of the SIPC, so your securities are protected up to $500,000 if the broker goes out of business (though this doesn’t cover market losses). 

Robinhood Pros and Cons

Robinhood is an excellent platform to learn about investing for beginners because of its user-friendly interface and commission-free trades. But its game-like interface and limited customer support can be drawbacks.

So, it’s time for this Robinhood app review to tell you about the pros and cons: 

Pros

• It’s free to get started. There’s no account minimum and no monthly fee.
• The Robinhood app is easy to use. The app gets 4.2 stars out of five in the Apple App Store and 4.1 stars out of five in the Google Play store. 
• There are no commission charges. Investors can invest in stocks, ETFs, options, and crypto commission-free.  
• Boost your retirement accounts automatically. The Robinhood app offers IRAs with an automatic 1% match (or a 3% match for Robinhood Gold members).

Cons 

• Limited investing options. With Robinhood, you won’t be able to access mutual funds or bonds. 
• Not all features are free. If you want access to perks like a higher IRA match and a savings account with a 5% APY (annual percentage yield), then you’ll have to pay for a Robinhood Gold subscription. 
• The customer support could be better. One of the most common complaints I’ve seen mentioned in Robinhood reviews is that the customer support team is difficult to reach, and actually getting help can be challenging. 

Robinhood Reviews

Robinhood app reviews average 4.1 stars out of 5 on the Google Play store, with nearly 500,000 reviews and over 10 million downloads. And on the Apple App Store, Robinhood app reviews average 4.2 stars out of five from over 4.3 million Robinhood reviews. 

So, here’s what Robinhood users are saying:

The app’s user-friendliness is a common thread in positive reviews. In this 5-star Robinhood app review, a user praised the app’s ease of use, saying it’s “easy to understand, easy to buy stock.” 

In another positive Robinhood review, a user shared how they have been using Robinhood for years, and it seems to be paying off.

In a 2-star Robinhood review, someone praised the user interface (UI) but said, “The customer service is a challenge and a deal breaker.”

In this 1-star Robinhood review, someone else suggested avoiding Robinhood altogether. Their complaints were with their customer support, which they called “non-existent” and “painfully slow.” 

Commonly Asked Questions About Robinhood

Robinhood Competitors / Alternatives To Robinhood / Similar To Robinhood?

If Robinhood isn’t the right investing platform for you, here are some popular Robinhood alternatives worth considering:

• Webull
• Wealthfront (read our Wealthfront Cash Account review)
• Fundrise (read our Fundrise review)
• M1 Finance
• Fidelity Investments
• Acorns
• Coinbase
• Stash
• Vanguard (read our Vanguard Cash Plus Account review)
• SoFi
• Betterment
• Ally Invest
• Public (read our Public review)
• Streetbeat (read our Streetbeat review)
• TD Ameritrade
• Invstr
• Uphold
• Binance.US
• E-Trade
• eToro

Is Robinhood a Scam?

No, Robinhood isn’t a scam. It’s a legitimate brokerage regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The Robinhood investing platform and app also has about 10.9 million active monthly users.

Why is Robinhood Bad?

Here are a few downsides of using Robinhood:

• There are limited investment options (doesn’t include mutual funds or bonds).
• Customer support can be lacking and unresponsive.
• It can encourage risky active trading.

Is Robinhood Still Trustworthy? / Can I Trust My Money in Robinhood?

Yes, Robinhood is generally trustworthy. It’s regulated by the SEC and FINRA and offers Securities Investor Protection Corporation (SIPC) protection for securities up to $500,000. Of course, always do your research and understand the risks before investing.

Learn more in this guide to the best way to invest money.

Do You Actually Make Money on Robinhood?

Yes, you can make money on Robinhood. Your success will depend on your investing knowledge, market conditions, and your strategy — not the brokerage itself. Also, Robinhood’s low fees and commission-free trading can help you maximize your returns.

You may also want to consider these unconventional ways to make money.

Should I Invest in Meme Stocks?

Meme stocks are stocks that have had their prices and trading activity artificially inflated by suggestions to buy on social media sites, including Reddit. While some people have made a lot of money in a short time by timing these transactions just right, it’s incredibly risky. This is because these inflated values aren’t a reflection of the true values of these companies, and the value of these stocks will most likely plummet quickly and unpredictably as things die down.