Robinhood lowers the costs of learning to trade stocks since you aren’t paying commission.
Robinhood is one of the newest and hottest brokerage firms. It’s a commission-free trading broker. It bills itself as the future of trading – with $0 trades, a fancy smartphone app, and lots of fancy investment-backers that would make it the envy of any Wall Street firm.
As a beginner investor, chances are all you’re doing is buying and selling. You probably also do this ‘more often’ than regular investors since you’re learning and will probably need to sell stocks that were bad picks quickly. Do it for free with Robinhood, don’t pay a commission for this when you have a choice not to.
Only trade with money you truly can afford to lose. If you’re a beginner, it’s very likely you will loose money.
Robinhood is a tool. So is E*Trade, Schwab, and Fidelity for that matter. They’re large platforms you can buy a wide variety of financial products on and implement various investment strategies.
As a tool, Robinhood itself is predicated on a great user experience. The value of a great user experience is up to the individual but it’s accepted practice that as part of a good investment strategy.
Robinhood is under the regulatory regime (in the U.S.) of FINRA and carries SIPC insurance, which as a customer, should protect your securities and cash.