Robinhood a truly free app that allows the user to open an account and trade for free. Robinhood was introduced to the market not long ago and continues to gain in popularity. Let us dive into the app and discover what is good and what is not. First off, the free aspect if what attracts the many people. If someone want to buy one share of Blue Apron, the stock is around five dollars and if you traded else where, you may have pay an additional five for the trade. The second reason the app is successful is due the simple nature of the application. Buying and selling is straight forward and easy.
Some of the drawbacks people may find is there are no tools besides a basic line chart. The lack of tools though allow the company offer free trades. Another drawback is that they only offer stocks on the major exchanges. The smaller stocks that are OTC or penny stocks may not be tradable on Robinhood.
The company makes money by keep the interest earned on uninvested money. This may seem unfair but for what the user is getting in return, it seems pretty fair.
Stockpile
Stockpile is in the same field as Robinhood in that it offers simple trading and investing. Stockpile charges $0.99 a trade, but they offer the ability to purchase partial shares. Instead of needing $200 for a share of Netflix, you can utilize $50 and still have exposure to the company. Beyond that, the company offers gift certificates in the form of shares, and this is to promote investing at a young age.
However, the downfall to the gifting is there are a decent amount of fees to go along with it. There is a base fee of $4.95 to purchase the card and that alone may kill the incentive of people giving stock as a gift. Besides that, people who already own equities can talk to their broker about gifting shares, with the requirement being the receiver having a brokerage account or an IRA/401K to deposit the equity into.
In todays world, the ways to put your money to work is essentially limitless and that is benefiting investors everywhere. The important of investing and doing so early is huge because time is your biggest asset in that situation. MacroAxis offers tools that can help you find the right investments, then you can utilize the free trading on Robinhood or small trading fee on Stockpile.
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Try AI Portfolio ArchitectNathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
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