My Experience Using the Robinhood Stock App

Updated on February 5, 2018
Robinhood Logo
Robinhood Logo | Source

Since the time I have been enrolled in college and worked various part-time jobs to make ends meet, I've had leftover funds that have been sitting in a savings account once other expenses are taken care of. I do have an IRA and invest in ETFs, and while I've tried to maintain decent savings in order to pay off unexpected bills, the interest that is paid by the bank on said savings account is close to non-existent. Hence, I've developed an interest over the past several months in investing in individual stocks, and potentially earning dividends, however currently slight.

This interest has led me to invest in individual stocks through Robinhood, specifically the app that you can acquire on any smartphone device. I researched other investment firms as well in the beginning of my journey in opening an individual account, but the commissions, charge fees, and minimum account balances that were required were slightly discouraging and would eat into the money that I was investing into stocks. For a college student such as myself, even though I'm not in financial straits, utilizing financial assets in a prudent manner is a must, and Robinhood was an excellent way of achieving my minor investment goals.

So the following paragraph explains the mechanics that make Robinhood such an attractive investing intermediary. You can buy and sell individual stocks without having to pay commissions. Additionally, there are no minimum account balances required or fees charged for maintaining an account. The Robinhood app that I have on my smartphone contains simple and easy-to-understand features such as graphs, charts, etc. that track the performances of stocks that you bought and display the historical performance of said companies and corporations in which you hold stock in. I also purchase and sell stocks using said app, requiring just the touch of a finger on the buy or sell button on the screen.

Your individual account can be linked to a savings or checking account, which allows for a seamless transfer of funds. It typically takes 3-5 days for the funds to actually be transferred out of your banking account to your Robinhood account, however, said transferred funds usually show up instantly in your account as margin. For example, if you have authorized a transfer of $200 from your checking account to your Robinhood account, that money will appear as having been deposited, so it is then available for buying stock as long you maintain that $200 dollars in your banking account until it has been confirmed as being transferred.

So how does Robinhood itself make money if it doesn't charge any fees? It does this by using any uninvested funds in your account and making investments off of it, similar to how a bank uses customer deposits to make investments and loans. This translates into the "free" use of Robinhood for the individuals utilizing it.

Now, while I have been extremely satisfied with using Robinhood and the app in buying and selling stocks, it is not without its limitations. The app can be slow in loading and displaying data, particularly if you have stocks invested in a large number of firms. Furthermore, the app itself lacks some of the features found in more established investment brokerages, and day trades are limited to three-day trades in a five trading day window, (unless you have more than $25,000 in your Robinhood account). In consequence, Robinhood is more suited for a "stay and hold" investor due to these limitations. It's not to say that more fluid trading options are impossible, but that those types of investors would potentially be better served by other brokerages.

In all, I would rate my experiences with Robinhood as being very positive. The fact that I can invest at my own leisure and pace without the need for a broker or the need to pay fees is enticing and makes for an easy and hassle-free investment experience. For the novice investor like myself who is just looking to invest in single stocks in a company you like or for the chance to earn some dividends off said stock, Robinhood is a good choice for exploring these options and simple investing, and I would recommend it to any new investor.

Source

Comments

    0 of 8192 characters used
    Post Comment

    • nestle02 profile image

      nestle02 

      8 months ago from Florida, USA

      I wrote an article on my Robinhood experience too

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, toughnickel.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://toughnickel.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)