My Experience Using Robinhood (2021): Is It Worth Investing Your Money Into?
Robinhood is a mobile trading app I struggled with using for a while. Eventually, I get the hang of it and is now my primary investing app. However, during my investing journey, Robinhood has its share of growth and setbacks. In this article, I will share my overall experience with Robinhood. Also, I will give my view on if it is worth other young investors to put their money into. Despite the many issues that have hurt Robinhood’s reputation, I would not completely rule them out.
Table of Contents
According to its website, Robinhood is a trading company that uses tech to make it easy for everyone to participate in our financial market. Originally a mobile app, they allow anyone, especially young people, to invest in the stock market. Robinhood is completely free to use; there are no trading fees or any other fees. They do have paid plans that include more advanced features. However, investing beginners do not have to worry about missing out on these features. Robinhood’s core features are free and standard across the board.
Robinhood is founded by both Baiju Bhatt and Vladimir Tenev. Both of them were classmates and roommates at Stanford University. When they graduated from college, they moved to New York City and built two finance companies. With their companies, they sold trading software to various hedge funds.
While working on their businesses, they realized that those on Wall Street did not pay anything to trade stocks. Meanwhile, everyday people pay fees for every trade they make. Baiju and Vlad realize how unfair this is and strive to do something about it. They worked to build products that would provide everyone, not just the wealthy, with access to the stock market. As a result, two years after moving to New York City, they moved back to California to build Robinhood.
Robinhood lives by three main values to aid in their mission to make the stock market easy and available for everyone, no matter their wealth:
- Changing how a user’s buying power is shown.
- Sending more helpful in-app messages and emails about a user’s options transactions.
- Change the in-app history page to help users better understand how to trade options.
Final Verdict: Is Robinhood Worth Investing Your Money Into?
Before I answer this question, I do want to share that Robinhood is holding off on plans to expand outside of the United States. I am surprised to learn that they have not already started to expand, given how popular they have become over the years. However, an article on Barrons writes that the two system outages in March 2020 caused Robinhood to stop their plans to expand into the United Kingdom. They plan on focusing on its core business and improving as much as possible. I believe the apparent suicide of Alexander Kearns added to this decision. No matter what the reason is, I am glad they made this decision. Robinhood has too many issues that do not need to travel to other parts of the world.
As far as if Robinhood is worth investing your money into, it is if you know enough about investing. Now that their options trading feature is cleaned up and includes helpful resources, I recommend it for anyone who wants to earn quick profits. However, if you just want a simple app that lets you invest any amount of money you can, there are better options. For an app that is supposed to gear towards young people, Robinhood is just not an easy app to use, especially for beginners.
If you would like to sign up for Robinhood, I suggest signing up through me so you (and I too) can receive a free stock to help you get started. Thank you so much for reading my Robinhood review. I know it is long, but I hope you find it useful as you embark on your investing journey. Let me know in the comments below what you think. Also, send me a message with your thoughts, questions, or ideas.
A while into owning bond ETF stocks is when I would learn that some of them pay dividends every month. Below are some of the bond ETF stocks I own that pay me dividends every month.
- Vanguard Long-Term Bond ETF (BLV) is an index of government, business, and foreign bonds that have at least ten years to mature.
- PIMCO Investment Grade Corporate Bond ETF (CORP) is an index of bonds that businesses can give.
- iShares 10-20 Year Treasury Bond ETF (TLH) is an index of bonds that the United States Treasury can give.
- iShares Core US Aggregate Bond ETF (AGG) is an index of the treasury, agencies, and other investment-grade bonds.