Robinhood Web Trader Features and Services
Since Robinhood launched its zero-fee stock trading app, not only has the company been able to transact over $100 billion and garner 3 million users but they have saved users over $1 billion in trading fees which is pretty impressive.
Introducing Collections, a new feature available on Robinhood for Web. Basically, the feature enables its users to discover the latest stocks. To help traders and investors locate stocks and options they are interested in, Robinhood organizes the assets by sectors such as social networks, gas and oil and entertainment.
They have taken a step further by adding the following categories – Female CEOs and 2017 IPOs among others. The feature is designed to be interactive which makes it easy for traders and investors to sort through. Users also have access to side by side asset comparisons. This makes it easy for them to select which asset to invest in and what trading strategy to use.
Robinhood Introduces Options Trading
Option trading will be available on Robinhood for Web as of 2018. At the moment, they are providing early access and once you sign up, they will release option trading by sending a card to your app and an email. Both services are designed to provide you with an instructive guide on how to apply for Options.
Start searching for the security (stock) that you would like to trade options for. To search, simply click on the magnifying glass icon on your home page, select the name of the stock you are searching for and click “Trade.” Once you are done, click on “Trade Options”.
As a trader, there are a lot of factors you need to consider when selecting the right Option to trade. They include:
Strike prices – usually listed from high to low. Robinhood web trader allows you to scroll and view the different strike prices
Breakeven Point – this is the point where a stock must trade at expiration in order to break even. Takes into consideration the Option’s premium.
Expiration Date – it’s usually displayed below the underlying stock and strategy. Scroll up and down to view expirations
Premium – refers to the price of the option
Chance of Profit % -refers to the probability of your investment being profitable after selecting the sell strategy. At the moment, Robinhood utilizes Black Scholes model in order to determine the investors’ probability to profit
Break Even % – refers to the amount an underlying stock requires to transition from the present to expiration in order for investors and traders to break even once they select the buy strategy.
It is important to understand that not all stocks have options and this is due to regulatory standards.
For customers who have attained Level 2 status, they have a chance of using the following strategies during Option trading:
Cash Covered Puts
Long Calls, Long Puts
Robinhood Introduces Crypto Trading
As a technology driven brokerage with less overhead, Robinhood announced that it will start offering cryptocurrency trading on its platform. In the last four days since the announcement was made, more than 1 million interested users have joined Robinhood’s waiting list.
The first group of customers will enjoy the new service which will be first available in 5 states – California, Massachusetts, Missouri, Montana, and New Hampshire – starting from February 2018. This service will be rolled out to other states in waves.
The good news is that Robinhood can bump you up the wait-list if you do one little thing – invite your friends to join. Not only that. You stand a chance of getting a free stock like Apple, Ford or Sprint.
The service is being introduced at a time when the cryptocurrency community is experiencing a downward trend especially in terms of cryptocurrency price. At the start of January 2018, the South Korean government announced that it had banned anonymous trading of cryptocurrencies. After the announcement, the price of Bitcoin plunged by 48%.
Baiju Bhatt, Robinhood’s Co-CEO announced that the company which is popular with millennials will act as a broker dealer and not like a traditional exchange. The company is planning to partner with large institutions in order to acquire virtual currencies on behalf of their customers.
The reason Robinhood ventured into cryptocurrencies is to provide low cost trading services designed for millennials who are in search of diverse digital products. What you ought to know is that Robinhood is making this move a year after it attained its “unicorn status” finally becoming the preferred brokerage for millennials.
Robinhood Crypto Features
Some of the features that early adopters will enjoy include:
Instant deposits – cryptocurrency traders will be able to make bank transfers totaling to $1,000. The funds will be made available immediately in the user’s account. Additional funds will be made available via ACH transfer system.
Commission free – trading will be available at the lowest fee and not the exorbitant fees charged by other cryptocurrency exchanges
Security – to ensure your personal information and digital assets are protected from malicious people, Robinhood will offer a secure platform protected by SSL and 2-Factor Authentication among other security protocols.
Round the clock trading –As from February 2018, Robinhood will limit cryptocurrency trading to Bitcoin and Ethereum even though it will be supporting 16 cryptocurrencies. More cryptocoins will be tradable later on. As a brokerage app, Robinhood will extend the app’s functionality to cryptocurrencies. This means trading will be in one place together with stocks, ETFs and options.