Robinhood is an American-based investing platform where users can trade both stock and cryptocurrency.
The company was founded in 2013 with the aim of giving access to financial markets to everyone, that’s how it inherited its name.
The company headquarters is located in California.
On the platform, users can trade Stock, Options (Users can trade an asset that gives them the right to buy or sell a security at a specific price), ETFs (Exchange-traded funds, a group of several companies representing an industry or a sector), and Cryptocurrency (11 assets are supported at present including Bitcoin, Ethereum, Solana, Dogecoin, Shiba Inu, Polygon, Litecoin and more).
They can also get a Robinhood cash card and ‘Earn weekly rewards as they spend“.
In early 2022, Robinhood launched a testing wallet for early investors who signed up to be on their WenWallets waitlist (following numerous requests for Robinhood to add a wallet to its platform).
The project started at the very beginning of the year but was officially announced at the Bitcoin Conference which took place in April 2022.
Traders can now sign up for their Web3 Wallet directly at the bottom of their homepage in the ‘What’s new at Robinhood’ section.
Having a wallet will grant users the following features:
- Trade and swap crypto assets at 0% network fees
- The possibility to connect their wallet to dApps (Decentralized Applications for DeFi (Decentralized Finance) trading)
- Connect their wallet to NFT marketplaces to collect and store NFTs
This will be a huge plus for traders as they will finally be able to transfer their assets in and out of their Robinhood wallet, which wasn’t the case before.
It is important to note that, it is still on a waiting list basis at the moment, so the wallet isn’t accessible to everyone for now.
Is Robinhood Exchange Limited To Expert Traders?
Robinhood was founded with the aim of giving access to financial platforms to everyone but also to making it easy.
You can see this goal as soon as you access their website homepage as they state, ‘Investing is simple here’ and ‘Start building your portfolio with just $1’.
They also pride themselves on having a zero-commission fee system compared to other crypto exchanges.
Their platform is light and simple to navigate which is ideal for novice traders.
On the other hand, we can also notice that Robinhood listened to its investors and tried to evolve by providing more options, advanced tools, and possibilities such as a Web3 Wallet, other new features with Stock Lending, Crypto gifts, and others (these can be found in the ‘What’s new at Robinhood’ section).
Robinhood wants to evolve as their users evolve too, as they mention ‘Become a better investor on the go, right in the app’.
As seen previously, traders can also trade stock, ETFs, Options and they can even do some DeFi trading for those who already have access to their wallet.
With that being said, experienced and less experienced investors can trade at Robinhood.
Pros & Cons Of Robinhood
| Pros | Cons |
| User-friendly platform (Support for novice investors with Robinhood Learn articles) | Only 11 cryptocurrencies supported on the platform at present |
| No commission fee | Only available to US-based investors |
| Stock and Crypto trade (with the possibility to do some DeFi trading when you get access to the wallet option) | You don’t own and therefore can’t transfer your crypto (until you get access to the new wallet option) |
| Possibility to send and receive crypto from other exchanges (new & on a waitlist basis for now) | You can only invest during a certain timeframe like stock exchange (between 7 am until 8 pm EST) |
| Customer Support call back option 24/7 via the website and app | Limited type of transactions supported (such as buying, selling and limit orders) |
Our Take On Robinhood
As a whole, Robinhood is a good platform for advanced traders since its last update with the wallet feature.
In fact, users now have the possibility to do some Defi trading, buy, store and sell NFTs on marketplaces and even transfer their assets in and out of the Robinhood platform.
It is also a great platform for beginners as they can benefit from their no commission fees system, and its educational content with Robinhood Learn, but they can also explore various other types of investments such as stock, ETFs, and options.
They made it simple and stress-free so any individual can invest freely while enjoying it.
Robinhood Fees
As seen earlier, Robinhood has no commission fee for Stock, ETFs, Options, and Cryptocurrency.
There is a fee of $75 on account transfer, for trading on margin requires users to subscribe to a Robinhood Gold access at $5 per month ‘which includes $1,000 of margin. Margin usage above $1,000 is charged 2.5% interest’.
There aren’t any domestic or international wire fees, and another great point is that there aren’t account opening or inactivity fees.
Is Robinhood Safe?
Robinhood did undergo some data breach incidents in the past, however, since then, the company reinforced its security measures in order to counter and prevent such issues.
The platform operates under a protection guarantee, they state on their website ‘We provide multi-factor authentication on all accounts’ and ‘We’re available to you 24/7’.
Robinhood is covered by the SIPC (The Securities Investor Protection Corporation) in order to protect their customers and their investments up to $500,000 (for stock only not for cryptocurrency investments).
Users can log into their mobile application using a pin, a fingerprint, or Face ID recognition depending on their device and preferences.
They also have the possibility to set up a 2FA (2 Factor Authentication) for extra safety measures.
In the case where users would sign in from a new or from a different device a six-digit code sent by text or by email could be requested (if no 2FA is set up).
Finally, they also offer cold storage for their customers’ investments which means that their funds are stored offline for extra security instead of being stored online.
Trading Options
Robinhood offers 3 different brokerage accounts, with different options and features, Robinhood Instant (that users will get by default when opening an account with Robinhood), Robinhood Gold, and Robinhood Cash (These are explained and detailed in the support section, in the ‘Robinhood Brokerage Accounts’ subcategory).
With its new wallet options, Robinhood offers various new features to its users. In fact, they will be able to trade and swap crypto assets without network fees, transfer their assets in and out of the platform, do some DeFi trading, and be able to buy and store NFTs.
Traders will have access to charting on both the app and the desktop browser, however, these aren’t customizable.
Banking At Robinhood
Traders can do up to 5 deposits per business day into their account, and they can transfer up to $50,000 per business day.
They mentioned ‘Deposits can take up to five business days to complete but could be shorter depending on your transfer history with Robinhood’.
Users have the possibility to add money into their account with Instant deposits, direct deposits, and automatic deposits.
Robinhood App Experience
Robinhood mobile application, Robinhood: Stocks & Crypto can be downloaded on both the App Store (for IOS) and on Google Play (for Android).
It is user-friendly and therefore easy to navigate through especially for novice investors. Traders will have access to both stocks and crypto.
Users who don’t have access to the wallet feature will only have the possibility to buy and sell the 11 crypto assets supported on the platform.
While, on the other hand, users who have access to the wallet feature will be able to trade differently with apps, transferring their assets in and out of the platform as well as buying and storing NFTs.
Robinhood Site Experience
Navigating Robinhood’s platform is easy. In fact, they made it really easy for beginners to be smoothly introduced to investing.
Users will have access to the necessary trading tools including, watch lists, charts, and crypto news.
Advanced traders (and more specifically, those who have access to the wallet feature) will be able to explore further trading options as seen right above.
Registration Process
Opening an account with Robinhood is a quick process.
When signing up, users will be requested to fill in their full name, and email address and generate a password for their account.
Then, they will be requested to provide their contact information, including their phone number, home address, city, and state.
Finally, they will need to enter their SSN (Social Security Number), date of birth, and citizenship.
After these, they will ask the user a few questions about their investing experience, and their employment status followed by a few more questions and users will then be able to submit their application after having reviewed their answers.
Users will then have the possibility to fund their account.
Robinhood Global Restrictions
Robinhood isn’t available in Europe, it is supported in the United States and in the District of Columbia but isn’t supported in Hawaii and in Nevada at present.
It is important to note that there are accessibility restrictions depending on the country you are in.
They mentioned ‘You can access your Robinhood account in almost all countries, with the exception of Cuba, Iran, North Korea, Syria, and the Crimea region of Ukraine. In these places, you won’t be able to access your account, and attempted logins from within those regions may lead to account restrictions’.
Robinhood Customer Service
As mentioned on their website homepage, Robinhood customer support is ‘available to you 24/7’ via the app and browser.
However, users will need to log in first in order to be assisted with their requests. Users will also have the possibility to request a callback, they can do so from the app and from the browser too.
Otherwise, they can refer to their ‘support’ section where all topics are gathered into different categories of frequently asked questions.
If a user suspects fraud or unauthorized activity on their account, they can contact the support team at the following email address [email protected] for assistance.