Robinhood Investing Explained

Robinhood is an app that allows commission free stock trading right on your phone, and soon to be online too. Most brokerages charge you every time you buy and sell stocks, but Robinhood allows you to make trades for free. They don’t have a lot of the bells and whistles of traditional brokerages which allows them to provide free trading. There focus is on helping millennials learn more about investing. Since you’re actually making the trades yourself, Robinhood requires more knowledge about the stock market. Although the standard Robinhood account is free, they also have a paid option that’s $10 per month. The premium account gives you added lending and buying power, and extended trading hours.

Pros

It’s free and easy. You have more control.

Cons

This control means you have more responsibility, and assume more risk if you don’t know what you’re doing.

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