Robinhood & Comission FREE Stock/ETF Trading 💸
How would you like it if you could trade stocks for FREE? FOREVER…
I’m here to tell you about a little app I’ve been using the past couple of months — RobinHood.
FULL DISCLOSURE: Robinhood does not pay me to review their app, but I wish they would, cuz it’s lit AF!! 🔥
So what is Robinhood?
My young padawan (Star Wars anyone?), it’s basically a broker that lets you trade stocks & ETF’s comission free. Now I won’t explain the 1’s & 2’s about what stocks & ETF’s are, as you can find them in my book Thug Finance (Yes-Promo!), but just know stocks and ETF’s are great tools for building wealth in the long-term.
There are other brokers out there also that have low comission fees, but none that I know of, offer “FREE” trades, unless it’s for some sort of promotion (e.g. your first 60 trades free).
Setup is pretty simple — you find it on the Google Playstore or App Store for iOS devices and Sign-Up easily.
You can fund your account by transferring money from your bank for free as well and transferring out of Robinhood back to your bank is free as well.
Buying a stock or ETF is pretty simple as well, and requires you to swipe up when you submit your order. You’re also not just limited to market orders and have the choice of limit, stop loss and stop limits as well.
No matter if you trade 1 share or 1000, there is absolutely ZERO commission fees!
That’s what I love about their platform — I don’t have to buy a whole 💩 load of shares and cheap out on comission fees like I do on my Schwab account (I now mainly use Chuck for their comission free ETF’s and funds).
Lately I’ve just been using a 1-share a week philosiphy and just increasing my position in companies I think are well-run and have a good future ahead of them. It’s beautiful because, as you can see, if I invest in GM, I’m getting a good dividend yield as well.
Now dividend yields shouldn’t be the only reason you invest in a stock, but hey it helps!
All this free shit sounds nice, but how the fuck does Robinhood make money?
Well, based on their explanation, they make money based on Margin accounts and the interest they collect on balances.
They also have a paid tier — RobinHood Gold that extends trading hours to your account and increases your buying power 2x.
All nice options, but not enough to cause ya boy to fork over $10/month in extra fees. Miss me with that Robin!
Plus I don’t fuck with margin accounts, since I’m more inclined to be more worried if I’m using borrowed money charging me wazoo interest rates that I probably lost on some dumb stock trade I just did.
If I wanted higher risks and rewards, I’d just do more options trading — that and not use condoms.
Just kidding, my bad for going off a tangent. 😬
Let’s go over some PROS & CONS of Robinhood.
- Comission FREE trading of Stocks & ETFs!
- Relatively simple to use interface
- TouchID Security log-in
- Available on iOS & Android
- data on the graphs looks weak AF, there are no numbers, just line charts
- Lack of dividend reinvestment — dividends get deposited as cash, right into your account, instead of partial share repurchases (this feature is looking to be implemented in the future though per Robinhood’s FAQ)
- ONLY available for iOS and Android, NO desktop browser version
- iOS means iPhone, there isn’t an iPad app, you just run the iPhone version of the app on your iPad 😑
- NO IRA accounts, just brokerage
Despite all this, I still highly recommend this app to anyone who wants a little more risk in their plate and don’t want the good old mutual fund road to wealth. Or maybe just to cut your costs on investing in stocks in general!
Rating: 4/5 Stars ⭐️⭐️⭐️⭐️
JBreezy’s seal of approval!
Now if I could only get Millenials passionate in investing as they are about Coachella…
Robinhood, how about some kickbacks for ya boy!!!!
Free stock trading. Stop paying up to $10 for every trade. Robinhood is available now! Signing up takes less than 4…www.robinhood.com