If you have ever wanted to get into the stock market but have been held back by daunting account minimums or brokerage fees, a new technology-driven trading app seeks to meet your needs.
[Image Source: Robinhood]
Robinhood is an IOS and Android US stock market trading app that works on IOS and Android devices. Most notably, it doesn't require any account minimums and it collects no fees. Right now, they are even running a promotion where if you sign up, you can get a free stock from Facebook, Apple, Microsoft, Ford, Sprint, or Verizon.
As an application, this company is focused on removing the middle man and making technology the center of stock trading. The company wanted to make stock trading available to the common man who just wants to invest some spare cash or have fun in the market. If it sounds a little too good to be true, it isn't. The app is driven by millennial's love of mobile technology, and its simple design takes the confusion away from stock trading. You can check out the video below to learn some more about it.
Comparing Robinhood to its closest competitor, E-Trade, you can see how one might be more inclined to trade with Robinhood. E-Trade charges $9.99 per trade whereas Robinhood charges nothing. For ETFs, E-trade charges $9.99 again and Robinhood charges, you guessed it, nothing. The difference lies in just what you can do with Robinhood and some of the more diversified trading apps.
Robinhood does not allow mutual fund purchases and you can't buy options. To the person looking to just get their feet wet, these non-options may not matter to you.
The mobile only trading app is driven toward the engineer, the regular guy, anyone on the go, that wants to get involved in trading with fairly low overhead and fairly low constraints. In the same sense that Bitcoin brought a decentralized platform to currency many years ago, Robinhood poses a similar system to the stock trading industry. It is a technology-based stock platform that doesn't need thousands of brick and mortar locations or expensive staff.
Of course, this technology-drive app isn't going to be for everyone. For starters, you must use it on a mobile device. You also can't day trade through it unless you have an account minimum of $25,000. However, if you just want to play around with some of your spare cash with low overhead and responsibility, Robinhood might be for you. This is just another way how technology is radically shifting the way things have been done for many years. Through engineering and ingenuity, the barrier to many platforms can be broken down.
If you're interested in Robinhood, you can check out more about it here. If you want to sign up, there are no fees, all it takes is an initial deposit of any amount from a bank account. Did I mention that you get a free stock just for signing up? If you want to sign up, here's the link for that.
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Written by Trevor English