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Robinhood Review: Why We Think It (Still) Lives Up to the Hype

Review Updated
Cole Tretheway
Ashley Maready
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page.

Robinhood might be for you if: You want to trade stocks from your phone for $0 per trade. The beautiful trading app is downright cheap, and it offers a smorgasbord of perks, some of which you'll struggle to find anywhere else (such as generous deposit matching).

In the following Robinhood review, we'll break down the pros and cons of this popular trading app.

Ratings Methodology
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Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair
= Poor
Bottom Line

Robinhood is a simple, low-cost brokerage with a few rare perks. It matches retirement deposits like an employer, the interface is gorgeous, and it's extremely affordable. No matter what or how you trade, Robinhood fees tend to match or beat the competition. It's worth a look.

Fees:

$0 for stocks, ETFs, and options; up to $5 monthly for Robinhood Gold

Account Minimum:

$0

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.

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Easy fractional investing in stocks and bonds. $0 commissions, 1%-2% crypto markups
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Low mutual fund fees. $0 per trade
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Long-Term Investors, Stocks and Options Traders Commission-free; other fees apply
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Full Robinhood review

Robinhood is an affordable discount broker at its core. It's easy to pick up and get started, even if you're totally new to investing. A few features set it apart from your vanilla trading app.

For one thing, its premium membership gives a ton of perks that are actually useful (like deposit match). For another, its commissions are highly competitive. And let's not forget about its margin rates, which are some of the lowest we've found!

My experience investing with Robinhood

The Robinhood interface is beautiful, and I don't use that word lightly. Slick and easy to navigate, it takes two seconds to scroll to your investments. You can eyeball your individual stocks' performance from the home page on both mobile and desktop. Night mode is like walking down a lit alleyway, bulbs flickering, neon hinting at promised gains.

I enjoy using the Robinhood mobile app

Screenshot of notifications within the Robinhood app.

Screenshot of performance graph in the Robinhood app.

I place individual and recurring trades on Robinhood's mobile app. Robinhood spots me instantly while Robinhood withdraws my brokerage deposit from my checking account. It's fast. Instant deposits are awesome when I want to secure a specific price before it goes up.

The home page shows my taxable brokerage account, and I can navigate to my Roth IRA in one tap. In fact, most information I could want is just one tap away.

Clicking the little bell icon on the upper right takes you to the notifications page. I love having all my notifications in one place. This feature almost feels stolen from RPGs, which usually give players similar inbox features.

I rarely use Robinhood on desktop

Screenshot of Robinhood desktop view

Robinhood Classic, the current desktop platform, is clean and simple. You can get around fast, with few clicks. I rarely use desktop because the app is easy. But desktop can be nice for reading Morningstar research reports. These are easier to read on bigger screens.

I don't use Robinhood for options trading

Screenshot of Robinhood Legend coming soon

Robinhood is rolling out Robinhood Legend, a new (and optional) desktop platform for active traders. It's got charts galore, plus intuitive ways to organize and visualize them.

I know my circle of competency, and trading options is not it.

If you trade options, you may want to compare it to other options trading platforms. Hint: check the fees. Robinhood offers cheap contract fees for derivatives trading.

I love Robinhood for retirement accounts

I love Robinhood's IRAs. Very few brokers offer 3% match on deposits (available to Gold members only; non-Gold members get 1% match). It's perfect for self-employed workers like me. The faster I can build up my retirement savings, the better.

Robinhood makes it easy to view how much match you've earned. It's right there, on the Retirement screen. If you're on the fence about using Robinhood for retirement, consider comparing Robinhood to IRA accounts offered by competitors.

I dislike how hard Robinhood leans into day trading

Robinhood encourages you to log on with its bright colors and frequent notifications. The more you trade, the more money Robinhood earns. That the app encourages day trading is unsurprising. But I'm an investor, not a trader. I'd rather not think about my daily performance.

My "set and forget" strategy is easy with apps like Fidelity or Vanguard -- where the layout is matter-of-fact. With Robinhood, the temptation to check your colorful account performance is much stronger.

The reason I stick around is because it's cheap, it's easy, and Robinhood offers a few rare perks for long-term investors like me (such as deposit matching).

Investment offerings

Robinhood lets you invest in the basics through standard accounts. You can purchase fractional shares of stocks and ETFs for as little as $1 on the platform.

With the upcoming release of Robinhood's new trading interface "Robinhood Legend" will offer futures trading. According to the Robinhood website, you'll be able to trade the S&P 500, oil, Bitcoin, and more. As of 2024, futures trading will soon be rolled out to Robinhood users.

Robinhood doesn't offer mutual funds and many types of alternative investments. For mutual funds, you're better off investing with a broker like Charles Schwab.

Investments

  • Cryptocurrencies
  • ETFs
  • Fractional shares
  • Futures (coming soon)
  • Index options
  • Options
  • Stocks
Rare perks: IRA match and 24 hour trades

Brokers tend to look the same these days. Robinhood is a notable exception. It gives two rare perks:

  • IRA match: Earn 1% match on IRA deposits. Gold members earn 3% match on IRA deposits and 1% match on taxable deposits. The catch: It takes five years for the match to vest.
  • 24-hour trades: Trade a variety of stocks 24 hours, five days a week. That's great when you're crossing time zones or outside the U.S.

Brokerage accounts

  • IRA
  • Joint accounts
  • Roth IRA
  • Traditional brokerage

Robinhood also gives you access to a debit card linked to your spending account. Robinhood Gold members can apply for access to the Robinhood Gold Card, a credit card that offers flat 3% cash back on spending in all categories.

Commissions and fees

Robinhood is one of the lowest-cost brokers around. What it lacks in account types, it makes up for in $0 commissions. It's one of the few brokers that charges $0 per-contract options fees. In the options trading universe, that's rare. Most brokers charge around $0.60 per contract.

Robinhood contract fees for futures and index options trading are also super competitive. If you trade with another broker, you may want to compare its per-contract prices to Robinhood's. You may be able to cut fees in half by switching to Robinhood.

Reason Cost
Stock and ETF trades $0
Options trades $0
Index options trades $0.50 per contract
Index options trades with Gold membership $0.35 per contract
Futures trades $0.75 per contract
Futures trades with Gold membership $0.50 per contract
Gold membership (optional) $5 monthly
Outgoing transfer (ACATS) $100
Outgoing transfer (Wire) $25
Instant brokerage-to-bank withdrawal Up to 1.75%
Data source: Robinhood

Hidden costs

Robinhood uses Payment for Order Flow (PFOF) to fund operations, and you bear the cost. It's a kind of complicated thing, but the end result is, you don't pay $5 per trade, and you might get worse execution prices. What that means is, you might pay a little more than someone else to buy stocks, and get slightly worse prices when you sell. Not a lot, but it can add up.

A 2024 report by the Congressional Research Service found that PFOF had minimal, if any, effect on execution prices. The specifics are difficult to nail down, but here's the gist: PFOF is probably cheaper than the old way of paying commissions on trades. Brokers like Robinhood, who use PFOF, charge hidden costs, but they're reasonable. In short, you're safe to trade.

Subscribing to Robinhood Gold

I pay for Robinhood Gold, the premium subscription. Mostly, for the deposit match (1% on taxable deposits, 3% on retirement account deposits). I can make up the cost and then some. I also enjoy reading up Morningstar research reports to better inform my decisions.

The full list of perks:

  • Higher interest on uninvested cash
  • Higher instant deposit limits
  • 1% match on taxable deposits
  • 3% match on new IRA contributions
  • Morningstar research access
  • Level II market data
  • $1,000 of zero-interest margin
  • Robinhood Gold Card access
  • Cheaper futures contracts
  • Cheaper index options contracts

Interested in boosting your earnings? Learn more in our Robinhood Gold Review. It's not for everyone, but there are a lot of features to like. Chances are good it's worth your time. It's definitely worth a look.

Margin rates

Robinhood gives you hyper-competitive margin rates. As of October 2024, Robinhood's rates are about half as expensive as what E*TRADE offers. The more you borrow, the lower your rate gets. Robinhood Gold members borrow the first $1,000 of margin at a 0% interest rate.

Amount Borrowed Margin Rate
Up to $50,000 6.25%
$50,000 up to $100,000 6.05%
$100,000 up to $1 million 5.75%
$1 million up to $10 million 5.50%
$10 million up to $50 million 5.45%
$50+ million 5.20%
Data source: Robinhood
Robinhood Promotions

Robinhood sometimes offers promotions that could save you money. Click below to go to our dedicated page covering current Robinhood promotions:

Robinhood for beginners

I was a total beginner when I opened a Robinhood account in college. Since then, I've learned how to invest, the difference between investing and trading, and how Robinhood compares to the best beginner-friendly brokers. Long story short, I'm still investing on Robinhood.

The combination of simple interface and low commissions is something I've found on a few other investing apps, but none do it as well as Robinhood. It's a great place to dip your toes without losing them to shark-like fees. Be it stocks, crypto, or options, Robinhood is very, very cheap.

TIP

Fractional share investing

I started with trading fractional shares -- you can buy stocks for as little as $1 per share, even if a whole share costs $100. Feel free to compare Robinhood to other fractional share brokers.

Research and education

Robinhood gives excellent educational resources to beginners. On Robinhood Learn, you can find many how-to articles and investing term definitions. There's even lots of content on advanced topics, like options trading.

FYI, there's no "course," so it's on you to brush up on the basics and advanced topics. Robinhood is far from the Duolingo of finance -- but it's a convenient place to learn about investing and trading. You can find Robinhood Learn articles on desktop or the app.

However, if you're looking for in-depth stock research, you can do better than Robinhood. Robinhood tailors its research and educational content to beginners, and only Robinhood Gold members get access to Morningstar research reports (on select stocks only). It's a useful perk, but investors who rely on technical indicators will likely come away disappointed.

TIP

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Interface

Robinhood features both a desktop web portal and a mobile app. Impressively, both are simple in design and easy to use. As of 2024, Robinhood has begun rolling out a third interface called Robinhood Legend, which is geared toward active traders.

Robinhood Classic

Robinhood Classic is the standard Robinhood desktop interface. This is a clean and simple version of Robinhood. It's great for beginners and looks similar to the mobile app. I use this interface to invest (tip: try Dark Mode). It meets my needs. I don't day trade, but if I did, I might want a more advanced interface than Robinhood Classic (mobile or desktop).

Robinhood Legend

Robinhood Legend is the new (optional) desktop interface for active traders. It's full of charts and technical indicators. You can mark up charts with drawing tools and create custom intervals. You can start fast with preset layouts, or customize everything from the start.

Customer service

I rarely reach out to Robinhood customer service. On the bright side, that's awesome -- the best service is the kind you don't need, because everything works. On the other hand, I was curious. How fast are response times now? So I messaged Robinhood for details on futures.

An AI bot got back to me in two seconds with futures-trading details pulled from the Robinhood website. So chances are, anything the website can tell you, the bot can tell you. But the bot didn't quite answer my question, probably because the info isn't on the website.

I pushed the chat through to a human customer service rep. The app warned me that wait times were longer than usual. I had the option to open a chat with a representative or request a call back; I opened a chat. A representative responded within four minutes.

The nice representative was thorough. On one occasion, he even self-corrected and clarified one of his answers. That was a nice change of pace from the typical "no, what I meant was" ping-pong game between me and customer service centers. I got what I needed.

Online reviews

App reviews are mixed. User complaints on the app stores mostly address the layout, which some find confusing. Mobile ratings:

  • App Store: 4.2 out of 5 stars
  • Google Play: 4.1 out of 5 stars

How do customers feel about Robinhood generally? On Trustpilot, Robinhood scores a 1.2. This is typical for big financial services, though it could be much better. It scores slightly worse than Webull (1.5) and much worse than SoFi (4.6), two of its biggest competitors. Complaints address poor customer service and difficulty reaching out.

How to contact Robinhood

You can contact Robinhood customer service one of two ways:

  • Phone: Monday - Friday between 7 a.m. and 9 p.m. ET
  • 24/7 online chat

You request a phone call in advance through the app. Or, you can send a chat and wait for a representative to get back to you. This could take a while depending on wait times. I've used it a few times, and Robinhood has always gotten back to me within 24 hours.

Security

Robinhood takes standard measures to secure your accounts. Your investments are covered by SIPC insurance for up to $500,000 (including $250,000 for cash). Cash in your Robinhood Spending account is FDIC insured through Sutton Bank, Robinhood's partner bank. up to $250,000.

You can boost your FDIC savings. If you opt into Robinhood's brokerage sweeps program, your cash moves to partner banks. There, it's FDIC insured up to $2.5 million. This is considerably more than what many competitors offer.

Robinhood scrambles passwords, encrypts personal information, and requires 2FA upon login. These are all standard and important security measures that keep your money safe.

About

Robinhood was founded in April 2013 by Vladimir Tenev and Baiju Bhatt. They aimed to democratize investing.

Robinhood's popular trading app launched in March 2015, and was one of the first firms to offer stock trading without commissions. More than 800,000 people were on the waitlist for the app when it launched.

In 2018, Robinhood made its appeal wider by adding cryptocurrencies like Bitcoin through Robinhood Crypto. This move made Robinhood one of the first to offer an easy way to buy virtual coins without fees.

In 2021, Robinhood went public in one of the year's most anticipated IPOs. It now trades under the ticker HOOD. As of 2023, more than 10 million people use Robinhood as their primary brokerage.

Robinhood in the news

Robinhood has been the subject of controversy numerous times. While these issues are important for Robinhood to navigate and important for investors, we believe Robinhood is a solid broker to consider, which is reflected in our overall rating.

Here are some of the serious issues that have arisen:

  • In December 2020, the Securities and Exchange Commission charged Robinhood with misleading consumers in statements made between 2015 and 2018 and executing trades at inferior prices.
  • In December 2020, the Commonwealth of Massachusetts accused the brokerage of gamifying trading, and steering inexperienced traders toward high-risk investments.
  • On Jan. 8, 2021, Robinhood froze trading of GameStop and several other stocks that were the subject of intense trading interest, angering many of its customers.
  • On June 30, 2021, Robinhood was fined $57 million and ordered to pay around $12.6 million to consumers who had experienced losses due to system outages during a period of market volatility in March 2020.

Robinhood has done an excellent job of learning from these incidents. For example, it has done a good job of building its educational library and adding features for long-term investors, such as IRA accounts and its 1% match.

Learn more about Robinhood

Keep reading about Robinhood on these pages:

FAQs

  • Robinhood is a user-friendly broker with minimal fees, but it isn't right for everyone.

    Here are some things Robinhood doesn't offer:

    • Mutual fund investing
    • Free stock research reports
    • SEP accounts

    Generally speaking, Robinhood lacks deep account types, investment types, and the customer service you might find at more established brokers like Fidelity or E*TRADE.

  • Robinhood facilitates cryptocurrency trading on its platform, and there are currently 15 different digital assets available, including Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Litecoin, and Stellar Lumens. Plus, Robinhood is one of the few places to buy and sell cryptocurrencies without commissions.