Robinhood is an investment start up based out of Palo Alto, California. The creators of the app started out building trading platforms for online trading companies in New York City. They realized quickly that most stock trading platforms charge a fee of up to $10 per transaction when there is no actual cost to cover. So, they packed their bags and moved back to California to start a stock-trading platform that was free to use.
It takes minutes to get started using Robinhood. Simply pick an email and password and then connect your bank account. Once your account is connected, it takes a day or two for money to transfer into your Robinhood account.
There is no minimum deposit and no fees for trading. Robinhood is completely funded by venture capital and the interest it makes off of users uninvested cash balances. The only cost to the user is the money used to fund the trading transactions.
I began using Robinhood this week and I have been really impressed with how easy it was to set up. I am not a stock pro by any means, but I bought three shares of Lionbridge Technologies, Inc and it took me about 30 seconds to complete the transaction. What I think is the best part of Robinhood is how quickly the stock prices are updated. On your homepage, you get a list of all the stocks you searched for and the numbers change frequently. In fact, it only took about five minutes for me to realize I already lost a few cents on my investment. Technology!
Overall, if you are a stock trading professional or someone who is interested in learning more about stock trading like I was, this app is for you. The fact that there are no commissions or fees involved with this app really makes the experience worthwhile. Plus the interface is so simple that anyone can use it.