Robinhood Review – Is Robinhood Legit?
Since 2013, Robinhood has shaken up the brokerage and investing arena by offering no commission or fee investing options. This has lowered the barrier of entry for hopeful equity traders as before you would typically pay anywhere from $5 – $7 per trade.
This is especially true for those traders that want to trade more frequently like swing or pattern day traders. Where as before the frequency of trades would eat into and possibly destroy any profits, Robinhood allows more frequent traders to pocket the profits.
I have personally used Robinhood for the past couple of years for some trading outside of my retirement accounts (I have a pension and separate Roth IRA). I don’t recommend it as your first investment vehicle (I use Vanguard for my retirement accounts and invest in low cost index funds), but if you’ve maxed out your retirement vehicles (or aren’t eligible), only have taxable accounts left to contribute to, and are interested in trading ETFs or stocks, I highly recommend it.