3 Reasons Investors Still Love Robinhood – Motley Fool

Posted on

Credit Cards
Banks
Check out our top picks of the best online savings accounts for August 2021.
Get Started!
Brokers
Mortgages
Insurances
Loans
Before you apply for a personal loan, here's what you need to know.
Get Started!
Knowledge
by Brittney Myers | Published on Oct. 7, 2021
Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Image source: Getty Images
Robinhood's road may be rocky, but many users are in for the long haul.
Investment app Robinhood has long been a controversial company. But, this year, they seemed to have ramped up the ruckus. If they aren’t being sued for outages, they’re being fined by FINRA for regulatory issues. And let’s not forget their lackluster IPO.
Indeed, if you just go by the headlines, it’s hard to imagine the online broker is anything but floundering. Surprisingly, however, it seems like Robinhood has managed to maintain its popularity through all of it — and then some.
In 2021 alone, Robinhood has gained millions of new accounts, giving them an estimated active account base of more than 22 million. Considering the broker’s tumultuous year, why are so many investors still sticking with Robinhood? We’ve got three good reasons.

One email a day could help you save thousands

Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.

By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.
Investing can be complicated. And it isn’t made any easier with a busy, data-heavy platform that makes you go through three menus just to make a trade.
With Robinhood, you don’t need an economics degree to start trading. The simple, clean interface makes it easy for even beginning investors to figure out how to buy and sell in seconds.
You can browse stocks, ETFs, and crypto, as well as see the trading history, market caps, and recent earnings. You’ll also get a basic news feed to help you stay on top of the market.

The Ascent’s picks for the best online stock brokers

Find the best stock broker for you among these top picks. Whether you’re looking for a special sign-up offer, outstanding customer support, $0 commissions, intuitive mobile apps, or more, you’ll find a stock broker to fit your trading needs.

See the picks

Find the best stock broker for you among these top picks. Whether you’re looking for a special sign-up offer, outstanding customer support, $0 commissions, intuitive mobile apps, or more, you’ll find a stock broker to fit your trading needs.
For traders on the go, the Robinhood mobile app is especially popular, pulling in four stars in both the Android and iOS marketplaces. With the mobile investment app, you can manage your account and make trades from nearly anywhere.
Robinhood’s whole shtick is based on the idea of making stock trading accessible for anyone. And “anyone” doesn’t typically have thousands of dollars to start trading. Part of what drives Robinhood’s devout fanbase is how affordable it is to open and use their brokerage accounts.
For example, you don’t need to meet a five-figure account minimum to open a brokerage account with Robinhood — because there is no account minimum. You could start trading with just $1 if that’s all you have to invest.
You also won’t need to pay high commission fees for every trade. In fact, trading U.S. listed securities and eligible exchange-traded funds (ETFs) is entirely commission free.
Another way Robinhood makes trading more accessible is by allowing you to trade fractional shares. Basically, this means you don’t need to buy whole shares in a company; instead, you can purchase part of a share based on how much money you want to invest.
For high-value stocks worth hundreds a share — like Microsoft or Amazon — fractional shares let you invest without having to fork over a fortune.
Keeping track of your financial accounts is critical, but it’s not easy if your accounts are spread across multiple companies and apps. Robinhood allows users to invest in both stocks and crypto all in one place.

Buying your first stocks: Do it the smart way

Once you’ve chosen one of our top-rated brokers, you need to make sure you’re buying the right stocks. We think there’s no better place to start than with Stock Advisor, the flagship stock-picking service of our company, The Motley Fool. You’ll get two new stock picks every month, plus 10 starter stocks and best buys now. Over the past 17 years, Stock Advisor’s average stock pick has seen a 618% return — more than 4.5x that of the S&P 500! (as of 9/15/2021). Learn more and get started today with a special new member discount.

Start investing

Once you’ve chosen one of our top-rated brokers, you need to make sure you’re buying the right stocks. We think there’s no better place to start than with Stock Advisor, the flagship stock-picking service of our company, The Motley Fool. You’ll get two new stock picks every month, plus 10 starter stocks and best buys now. Over the past 17 years, Stock Advisor’s average stock pick has seen a 618% return — more than 4.5x that of the S&P 500! (as of 9/15/2021). Learn more and get started today with a special new member discount.
In the Robinhood app, you’ll find several different cryptocurrencies, starting with the ever-popular Bitcoin. Additionally, you can purchase Ethereum, Dogecoin, and Litecoin. Investors can purchase crypto with as little as $1 investment, and there aren’t any commission fees. So if you buy $100 in crypto, you get $100 in crypto.
While you can only buy and sell crypto currently, Robinhood plans to launch a crypto wallet sometime soon. You can even join the waitlist to ensure you’re one of the first to try it out.
Sure, Robinhood has had a rocky year — and the path ahead still has its share of bumps. But that doesn’t seem to be negatively affecting the app’s user numbers.
All in all, it’s easy to see why Robinhood is so popular amongst beginning traders. But even seasoned investors can benefit from what the broker has to offer. From an accessible interface to affordable accounts, Robinhood makes it easy to invest. And the appeal of having all of your investments in one place — including your crypto — is sure to be a selling feature to many.
Of course, if you’re still on the fence about whether Robinhood is for you, you can explore your options. You can easily find places to buy stocks that are better than Robinhood.
Over the long term, there's been no better way to grow your wealth than investing in the stock market. But using the wrong broker could make a big dent in your investing returns. Our experts have ranked and reviewed the top online stock brokers – simply click here to see the results and learn how to take advantage of the free trades and cash bonuses that our top-rated brokers are offering.
Brittney is a credit expert and card strategist whose advice has been featured by major publications and financial sites across the web.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Related Articles
Best Online Stock Brokers for 2021
How to Open a Brokerage Account: A Step-by-Step Guide
Best Online Stock Brokers for Beginners in 2021
Best Online Stock Brokers for IRAs in 2021
Best Online Stock Brokers for 2021
How to Open a Brokerage Account: A Step-by-Step Guide
Best Online Stock Brokers for Beginners in 2021
Best Online Stock Brokers for IRAs in 2021
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 – 2021 The Ascent. All rights reserved.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

source

Leave a Reply

Your email address will not be published. Required fields are marked *