Robinhood is a mobile-first discount brokerage and crypto exchange best for beginner and intermediate active traders. The platform stands out for its accessible interface, advanced charting capabilities, and low-cost trading.
Business Insider's personal finance team compared Robinhood to the best stock trading apps and found it to be an industry-leading platform for newbie active traders.
Pros and Cons
Robinhood Pros
- Commission-free trading of stocks, ETFs, options, and cryptocurrencies
- 24/5 extended stock trading hours (8 p.m. Sunday to 8 p.m. Friday)
- Gold members earn 4.00% on uninvested cash held in a brokerage account
- 1% IRA match (3% IRA match for Gold members)
Robinhood Cons
- Smaller cryptocurrency selection compared to competitors
- Limited to Morningstar research and Nasdaq Level II data (must be a Gold member to access)
- No mutual funds or bonds
Open an Account
$0 ($1 for fractional shares; $2,000 for margin trading)
0% ($5/month for Robinhood Gold)
Pros
Cons
- App store rating: 4.2 iOS/4.0 Android
- Consider it if: You want to trade crypto and invest in a wide range of stocks and ETFs.
Compare Robinhood
$0 ($5 to start investing); $5 fractional shares; $2,000 for margin trading
$0 annual fee and stock trading fee
Pros
Cons
SoFi Invest is a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.
SoFi Active Invest- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.
$5
Monthly plans start at $3 for Bronze, $6 for Silver, and $12 for Gold
Pros
Cons
Acorns is one of the best investment apps for beginners and hand-off investors who want to start investing but are overwhelmed by the choices with other investing apps. This simple and easy-to-use platform offers a low investment minimum, portfolio diversification, and beginner-friendly charting tools. Acorns is more expensive than other zero-fee apps out there, but the ease of use may make it worthwhile for certain users.
Acorns- Get started in under 5 minutes
- $3/month gets you a full financial wellness system with connected investment, retirement, and saving accounts.
- Invest in a diversified, expert-built portfolio
- No expertise required
- Invest your spare change with Round-Ups (nearly $5,750,000,000 in Round-Ups invested and counting)
- Set easy, automatic Recurring Investments
- See your account performance right in the app and play with the interactive Potential screen
- All you need to start investing is $3
- 14M all-time customers served. Everyday Americans have invested over $25 billion with Acorns, much of it in spare change
Overview
Robinhood is a pioneer stock trading platform that makes hands-on trading more accessible for beginners and advanced trading more user-friendly for seasoned investors. It quickly became a household name for its low fees and powerful trading solutions. It was the first platform to offer IRA matching contributions as well as the first to offer commission-free trading of stocks and ETFs.
Although beginners are Robinhood's main audience, more experienced investors can benefit from the platform's low margin rates, Morningstar research, advanced market data from Nasdaq, and detailed charting capabilities. Stocks and ETFs can be traded 24 hours a day, five days a week — a perk not typically available on discount brokerages.
Robinhood's main platform is its mobile app, but it launched its more advanced browser trading platform, Robinhood Legend, in 2024. The Legend platform is free and includes various charting features, drawing tools, and technical indicators.
Customer support is available 24/7 on Robinhood's chat function. Phone support hours are from 7 a.m. to 9 p.m. ET, with brokerage account support available during the weekdays. Additional helpful resources include Robinhood's detailed educational library, YouTube channel, and expert commentary on the Investor's Guild blog.
Robinhood is a strong pick for people who understand the risk of cryptocurrency and are ready to start active trading. However, if you have never invested money before or you're looking for a hands-off option, start with passive investing that you can set up through other investing apps or brokerages. Robinhood isn't a good choice for true beginners or those searching for mutual funds.
Robinhood's mobile app has a rating of 4.3/5 on the Apple Store and 4.2/5 on Google Play.
Is Robinhood Safe?
Robinhood is generally a safe and trusted platform for trading stocks, ETFs, cryptocurrency, and options. To protect user investments and personal information, it implements industry-standard security protocols such as data encryption, two-factor authentication (2FA), cryptographic hashing for sensitive personal details, and regular third-party security audits.
Also, as a registered broker-dealer and SIPC member, Robinhood provides robust protection up to $500,000 for securities and $250,000 for cash. Robinhood Gold users receive up to $2.5 million in FDIC coverage.
It's important to note, however, that investors are generally divided about whether Robinhood is a reliable platform. Its ease-of-use, transparency, low fees, and robust charting capabilities have won over several new and seasoned investors who are dedicated to the Robinhood brand — you can even buy Robinhood merch. But that doesn't erase the fact that Robinhood has been involved in several legal issues over the last few years, including the GameStop stock trading controversy, which has deterred some potential investors from getting involved with the platform.
At the same time, Robinhood has continued to upgrade its security measures, comply with federal and state regulations, and offer some of the lowest fees and rates in the industry.
Robinhood has not experienced a data breach since November 2021, when hackers stole about 5 million users ' personal information, such as email addresses and names.
Is Robinhood Bad?
Some investors have questioned Robinhood due to its gamified trading approach, which can lead inexperienced investors to take on unnecessary risks. The platform also faced considerable criticism in 2021 after halting trading on certain stocks, notably GameStop (GME) and AMC Entertainment. While this doesn't necessarily mean Robinhood is a bad platform, certain investors may be put off by the number of lawsuits and controversies resulting from this event.
That said, what makes Robinhood good for stock and crypto trading is the company's efforts to make investing affordable and accessible to all kinds of investors. As part of its values, Robinhood aims to create products that let people trade at their own pace and on their own terms. It does so by offering:
- Industry low margin rates
- Commission-free trading of stocks, ETFs, options, and cryptocurrency
- A library of educational resources, including detailed guides and tutorials on trading basics and advanced strategies
- Advanced charting capabilities and trading tools
Ways to Invest with Robinhood
Robinhood offers a range of account options to suit different investors' needs.
If you're a Robinhood Gold member, you can get a 1% boost on qualified transfers of up to $50,000 into a Robinhood Strategies managed account until May 30, 2025. Non-Gold members get a 1% boost on transfers up to $25,000.
Robinhood Stock Trading
Robinhood stock trading is best for beginner or intermediate active investors seeking greater control and flexibility over their investments.
With Robinhood Invest, you can trade:
- Stocks
- ETFs
- Fractional shares
- Options (long calls and puts, covered calls, cash-secured puts, strangles)
- Futures (indexes, energies, currencies, metals, and crypto)
Stocks, ETFs, and options are commission-free, but options trades have a $0.04 fee per contract. Robinhood offers fractional shares for only $1, making portfolio diversification more affordable.
If you are unsure where to start, Robinhood generates a free initial stock recommendation for new investors, but only for your first investment. This perk is unavailable to investors in Massachusetts.
With Robinhood, you are limited to US-listed stocks and ETFs, with the exception of over 650 global stocks through American Depositary Receipts (ADRs).
Robinhood does not support:
- Mutual funds
- Bonds and fixed-income trading
- Preferred stocks
- Tracking stocks
Robinhood's 24/5 market access provides more trading opportunities for stock traders who are willing to take on the additional liquidity risk, price uncertainty, and higher volatility.
Beyond stock trading, the Robinhood exchange supports:
Cryptocurrency
Robinhood's commission-free rule also applies to cryptocurrencies. With Robinhood Crypto, you can invest in crypto assets such as bitcoin, ether, solana, and dogecoin starting at $1. But depending on your state, certain cryptocurrencies may not be available.
The Robinhood crypto wallet is a self-custody wallet accessible within the Robinhood app. It offers the same security, NFT market access, and DeFi access commonly found in many of the best crypto wallets. Moreover, you can easily transfer crypto from Robinhood to your wallet and vice versa.
IRAs
If you are a retirement-focused investor looking to invest in options alongside traditional stocks and funds, consider opening a self-directed traditional or Roth IRA with Robinhood. Robinhood is featured on our list of the best Roth IRA accounts for its industry-leading rollover bonus.
Robinhood Legend
Legend is Robinhood's free browser trading platform featuring professional-grade trading technology. Compared to its mobile app, Robinhood Legend offers a greater selection of powerful charts, advanced tools, and features. Experienced investors get access to custom layouts, fast trade execution, and real-time market data.
Robinhood Gold
Robinhood Gold is the brokerage's premium membership, providing investors with a suite of additional perks, such as:
- 3% IRA match (non-Gold investors earn a 1% match)
- Lower trading fees
- Access to Morningstar research reports and Level II Nasdaq market data
- No management fees on every dollar over $100,000
- Up to $2.5 million in FDIC insurance
- Robinhood Gold credit card
Gold members also get access to Cortex, Robinhood's upcoming AI-powered investment tool that provides market insight and analysis.
To be a Gold member, you must pay a $5 monthly subscription fee (or $50 a year), but you can sign up for 30 free days.
Robinhood Robo-Advisor
Robinhood's new robo-advisor, Robinhood Strategies, provides managed portfolios with low expense ratios (0.06% to 0.10%) and a low $50 minimum investment. Strategies portfolios are available as individual brokerage accounts or IRAs.
While Robinhood Strategies is a robo-advisor, portfolios are actively managed by a team of professional advisors and can be rebalanced as needed. However, you can't directly contact an advisor.
Your risk tolerance, time horizon, and goals determine the investments in your Robinhood Strategies portfolio. But only accounts of $500 or more can add individual stocks. Otherwise, you are limited to ETFs.
The biggest downside of Robinhood Strategies is that managed IRAs do not receive matching contributions.
Robinhood Margin Trading
Margin trading is available for Robinhood accounts with balances of at least $2,000.
Robinhood's margin rates are some of the lowest in the industry, ranging from 4.7% to 5.75% (compare this to Charles Schwab's rates of 10.825% and 12.575%). Interest rates are calculated at the end of each trading day based on settled margin balances and charged to your account every 30 days.
If you are a Robinhood Gold member, your subscription includes the first $1,000 when trading on margin.
Robinhood Fees
A Robinhood brokerage account has no minimum investment requirement and no annual fees. However, to upgrade to Robinhood Gold, you must pay $5 monthly or $50 annually.
There is a 1.75% fee on instant debit card or bank account withdrawals, and there is a $100 transfer fee if you withdraw from Robinhood to another broker.
Trading fees on Robinhood include:
- ADRs fees: Usually $0.01 to $0.03 per share
- Options fees: $0.04 fee per contract or $0.50 per index option (index options are $0.35% with Gold)
- Futures fees: $0.75% per contract traded ($0.50 with Gold); NFA regulatory fee of $0.02
- Margin interest rates: ranging from 4.7% to 5.75%
Robinhood Strategies charges an annual 0.25% management fee. Gold members' management fees are capped at $250 per year.
Expense ratios for Strategies portfolios fall around 0.10% for ETF portfolios and 0.06% for mixed ETF and stock portfolios.
Trustworthiness
Robinhood has an A rating with the Better Business Bureau. However, the BBB says the brokerage has a pattern of complaints showing multiple users could not withdraw funds from their investment accounts.
Robinhood has been involved in more lawsuits than the average investment app, harming its overall reputation as a trustworthy brokerage. Some history of legal action is common for other highly regarded investment platforms, like SoFi, Fidelity, or Vanguard. Still, Robinhood has been involved in more legal battles than is considered normal.
On January 13, 2025, Robinhood agreed to pay $45 million in penalties to settle charges from the SEC that the company violated over 10 separate securities law provisions, including failing to accurately report trading activity, maintain books and records, and safeguard customer information.
On October 25, 2024, a class action lawsuit from the US District Court for the Northern District of California was filed against Robinhood for allegedly failing to pay customers a reasonable rate of interest through the brokerage's deposit sweep program. Robinhood denies these allegations. This lawsuit is still pending.
On September 4, 2024, Robinhood agreed to pay $3.9 million in a settlement with the California Attorney General. The California Department of Justice investigated Robinhood and concluded that the brokerage failed to disclose certain aspects of its trading and order-handling arrangements.
On January 18, 2024, Robinhood agreed to pay a $7.5 million settlement after the Massachusetts Secretary of State alleged that the platform used "gamification" strategies to encourage young, inexperienced customers to make risky trades. The original enforcement action was filed in 2020. The deputy general counsel and head of government affairs said the deal "resolves historical matters dating back to 2021 that do not reflect Robinhood today."
How to Transfer Stocks Out of Robinhood
Before you start the transfer, Robinhood asks you to take care of any account restrictions or negative balances, as this will delay the process. To initiate the transfer, you must call your new brokerage and ask them to provide instructions to Robinhood and its clearing partner.
According to Robinhood's support page, you'll also need to ensure the transfer you've initiated is an ACATS (automated customer account transfer service) transfer. This means you can't use other stock delivery methods, such as transfer agent transfers or check transfers, when moving your stocks.
If the brokerage you're transferring to asks for your Robinhood Securities account number, you can find this information by clicking on the account icon in the bottom right corner of your mobile app, clicking Investing, and then copying the number at the top of the screen.
Alternatives
Here's how Robinhood compares.
Webull vs Robinhood
$0 ($100 for robo-advisor)
0% (0.2% for robo-advisor)
Pros
Cons
Webull is best for beginners and intermediate investors in search of commission-free investments, expert market data, extended hours trading, and robo-advice. The app could also be a good fit for futures and options traders looking for an easy-to-navigate platform.
Webull Brokerage- App store rating: 4.7 iOS/4.4 Android
- Consider it if: You're after something that's free to use (for most people) and friendly to active traders
Webull is another discount brokerage for beginners and casual investors to trade commission-free stocks, ETFs, and options. Like Robinhood, Webull also provides an advanced trading platform for futures and options trading.
Webull is the best stock trading app for beginner traders dipping their toes into more sophisticated trading strategies. It offers a user-friendly paper trading feature, which helps new traders simulate investment strategies without risking actual money. Robinhood does not provide paper trading.
Webull is also the best option for desktop traders, as it was recently upgraded with new charting capabilities and perks. Robinhood does not offer a desktop trading platform and only recently launched its web-based exchange.
Although Webull supports cryptocurrency trading, Robinhood is the best platform for trading crypto and stocks, all on the same platform. You would have to download a different platform, called Webull Pay, to buy bitcoin and other altcoins with Webull. But with Robinhood, you can sign up for a Robinhood Crypto account under the same login as your stock account. Cryptocurrency on Robinhood is also commission-free.
SoFi Investing vs Robinhood
$0 ($5 to start investing); $5 fractional shares; $2,000 for margin trading
$0 annual fee and stock trading fee
Pros
Cons
SoFi Invest is a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.
SoFi Active Invest- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.
SoFi® is an investment app suitable for all kinds of investors but is generally best for true beginners and those who prefer a passive investment style. Robinhood and SoFi Active Invest® have similar investment offerings, but Robinhood is the cheaper option when it comes to trading fees, making it the better option for active traders.
If you like the sound of active trading and don't mind doing some research on your investments, Robinhood's low fees and commission-free securities could be a good fit.
Why You Should Trust Us
Robinhood was reviewed using Business Insider's rating methodology for investing platforms. Betterment online brokerage and robo-advisory services were compared to other investment apps based on their account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 1 and 5.
Business Insider's Overall Robinhood Rating
| Feature | Insider rating (out of 5) |
| Fees | 4.50 |
| Investment selection | 4.00 |
| Security | 4.00 |
| Ethics | 3.50 |
| Access | 4.00 |
| Customer service | 4.50 |
| Overall score | 4.10 |
FAQs
Is Robinhood Gold worth it?
Robinhood Gold is worth it for hands-on traders who want to invest in stocks and cryptocurrency on the same platform. Beginners can benefit from Robinhood's fractional shares, low fees, and user-friendly interface, as well as various education resources. More experienced investors can upgrade to the Legends platform and trade futures and options.
How does Robinhood make money?
Robinhood makes money through payment for order flow. When you make a trade, that trade information is sent to a third party that places large orders simultaneously for a slight advantage. The larger company then compensates Robinhood. The brokerage also generates income from interest on securities and margin loans, and with Robinhood Gold, a premium subscription service that charges a flat monthly fee.
Is Robinhood FDIC insured?
Yes. Robinhood is an FDIC-insured investment platform providing up to $2.5 million in protection per customer, but only for Gold users. Non-Gold investors have up to $250,000 in coverage. FDIC insurance is for cash balances, not investments. Robinhood also provides SIPC coverage up to $500,000 for securities.
Is Robinhood legit?
Robinhood is a legitimate and reputable online brokerage for trading stocks, cryptocurrency, and other securities. It employs industry-standard security measures and follows federal regulations to operate as a legal stock trading platform and crypto exchange.
Why do people say Robinhood is bad?
Some people say Robinhood is bad after it was criticized for halting trading on certain meme stocks, including GameStop (GME) and AMC Entertainment, back in 2021, resulting in several lawsuits. Robinhood has also been criticized for its gamified approach to trading, which can encourage irresponsible trading behaviors.
Sofi Active Invest: Investments are not FDIC-insured - Are not bank-guaranteed - May lose value - Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers.
SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth's advisory operations, services, and fees is set forth in SoFi Wealth's current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.
Margin Disclosure: Margin borrowing increases your level of market risk, as a result it has the potential to magnify both your gains and losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. Regardless of the underlying value of the securities you purchased, you must repay your margin loan. Robinhood Financial can change its maintenance margin requirements at any time without prior notice. If the equity in your account falls below the minimum maintenance requirements (varies according to the security), you'll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood Financial may be forced to sell some or all of your securities, with or without your prior approval. For more information please see Robinhood Financial's Margin Disclosure Statement, Margin Agreement and FINRA Investor Information.
Margin Risk: Margin trading involves risk and may not be suitable for all investors. Borrowing on margin increases your level of market risk and can amplify both gains and losses.
Margin Requirements: Robinhood Financial may change maintenance margin requirements at any time without prior notice. If the equity in your account falls below minimum maintenance requirements, you may need to deposit additional cash or collateral. If those requirements are not met, Robinhood Financial may sell securities in your account without prior approval.IRA Match: The 3% matching on annual contributions requires a subscription with Robinhood Gold ($5/mo) and customers must stay subscribed to Gold for 1 year from the date of the first eligible deposit to keep the full Gold match. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. Match rate subject to change. Non-Gold customers receive a 1% match. Offer only applies to self-directed IRAs. For more information refer to the IRA Match FAQ. You must have compensation (wage income) in order to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions. The Robinhood IRA is available to any U.S. customer with a Robinhood brokerage account in good standing.
Robinhood Strategies Managed Portfolios: Robinhood Strategies charges an annual management fee of 0.25% on the net portfolio value of each managed account. Eligible Robinhood Gold subscribers pay no management fees on the portion of their managed account net portfolio value that exceeds $100,000, thereby limiting the annual management fee to $250. Other fees apply.
General Trading Risk: All investments involve risk and loss of principal is possible. Brokerage services are offered through Robinhood Financial LLC, ("RHF") a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, ("RHS") a registered broker dealer (member SIPC). RHF and RHS are not banks. All are separate but affiliated entities. Securities offered by RHF are not FDIC insured and involve risk, including possible loss of principal. Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC. Portfolio management of managed accounts by Robinhood Asset Management, LLC ("Robinhood Strategies"), an SEC-registered investment advisor.
Investing Risk: Investing involves risk, including the possible loss of principal.
Brokerage Services: Brokerage services are offered through Robinhood Financial LLC ("RHF"), a registered broker-dealer (member SIPC), with clearing services through Robinhood Securities, LLC ("RHS") (member SIPC).
Not a Bank / Insurance: RHF and RHS are not banks. Securities offered through RHF are not FDIC insured and involve risk, including possible loss of principal.
Options Risk: Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before trading options. Robinhood Gold: Robinhood Gold is a subscription-based membership program offered through Robinhood Gold, LLC. Fees and terms apply.
Crypto Risk: Cryptocurrency trading is offered through Robinhood Crypto, LLC (NMLS ID 1702840). Trading and holding digital assets involves significant risk, including the risk of substantial loss. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. *Trading and owning digital assets involves significant risk, including the risk of substantial loss. Cryptocurrency trading is offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. ** Network fees may apply. Availability may be subject to regulatory approval in certain states.
Affiliate Disclosure: Content may include affiliate links. The publisher may receive compensation if you open an account through those links.
Additional Disclosures: https://about.robinhood.com/legal
