Robinhood is a mobile-first discount brokerage and crypto exchange designed for beginner and intermediate active traders. It stands out for its accessible interface, advanced charting capabilities, and low-cost trades.
In early 2025, Robinhood expanded its brokerage platform to include expert-managed portfolios, banking, and a new AI investment tool for market insight and real-time analysis. Certain features are limited to Robinhood Gold members.
Business Insider's personal finance team compared Robinhood to the best stock trading apps and found it to be a strong choice for investors beginning their active investing journey.
Pros and Cons
Robinhood Pros
- Commission-free trading of stocks, ETFs, options, and cryptocurrencies
- 24/5 extended stock trading hours (8 p.m. Sunday to 8 p.m. Friday)
- Gold members earn 4.00% on uninvested cash held in a brokerage account
- 1% IRA match (3% IRA match for Gold members)
- Free Robinhood Legend browser platform for advanced investors
Robinhood Cons
- Smaller cryptocurrency selection compared to competitors
- Limited to Morningstar research and Nasdaq Level II data (must be a Gold member to access)
- No mutual funds or bonds
Open an Account
$0 ($1 for fractional shares; $2,000 for margin trading)
0% ($5/month for Robinhood Gold)
- Free stock, option, ETF, and cryptocurrency trades; 0.01% APY on uninvested cash for non-Gold users and 4.00% for Gold members
- IPO investing available
- Cash management accounts available
- Website is easy to navigate; advanced charts for all users
- Lack of investing research and trading tools; can only take advantage of professional research if you're a Robinhood Gold member
- No joint accounts, education savings accounts, or mutual funds
- App store rating: 4.2 iOS/4.0 Android
- Consider it if: You want to trade crypto and invest in a wide range of stocks and ETFs.
Compare Robinhood
$0 ($1 to start investing); $5 fractional shares; $2,000 for margin trading
0% for active trading and automated investing
Get up to $1,000 in stock when you fund a new account.
- No account minimum
- No account or trading fees, and low fees to own funds
- Access to Certified Financial Planners
- IPOs available
- SoFi 1% IRA match
- No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit
- No option for stop-loss orders when actively investing. SoFi's active investing account only uses market orders
- Currently only available to US residents
SoFi Invest is a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.
SoFi Active Invest- Promotion: Get up to $1,000 in stock when you fund a new account.
- App store rating: 4.8 iOS/3.8 Android
- Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.
$1 ($500 for automated investing)
$0 for stock trades. 0.25% for automated investing (0.06% to 0.13% for fund fees)
- Low annual fee for investment accounts; crypto trust investments available
- Tax-loss harvesting, portfolio lines of credit, 529 college savings plans available
- Cash account
- Mobile app and investing and retirement tools
- You need at least $100,000 to utilize additional investment strategies
- No human advisor access
Wealthfront is one of the best robo-advisor options if you're in search of low-cost automated portfolio management, and one of the best socially responsible investing apps for features like tax-loss harvesting, US direct indexing, and crypto trusts.
Wealthfront- Consider it if: You're balancing several goals and want to streamline your finances.
- Promotion: Fund your first taxable investment account with at least $500 in the first 30 days of account opening and earn a $50 bonus.
$5
Monthly plans start at $3 for Bronze, $6 for Silver, and $12 for Gold
- Low fees
- Helpful automatic saving and investing tools
- Portfolio suggestions built to match your risk level
- "Acorns Earn" invests a percentage of your purchases from certain companies
- Flat monthly fee is on the high side, especially for smaller accounts
- The option to choose individual investments requires a Premium plan
Acorns is one of the best investment apps for beginners and hand-off investors who want to start investing but are overwhelmed by the choices with other investing apps. This simple and easy-to-use platform offers a low investment minimum, portfolio diversification, and beginner-friendly charting tools. Acorns is more expensive than other zero-fee apps out there, but the ease of use may make it worthwhile for certain users.
Acorns- Get started in under 5 minutes
- $3/month gets you a full financial wellness system with connected investment, retirement, and saving accounts.
- Invest in a diversified, expert-built portfolio
- No expertise required
- Invest your spare change with Round-Ups (nearly $5,750,000,000 in Round-Ups invested and counting)
- Set easy, automatic Recurring Investments
- See your account performance right in the app and play with the interactive Potential screen
- All you need to start investing is $3
- 14M all-time customers served. Everyday Americans have invested over $25 billion with Acorns, much of it in spare change
Robinhood Overview
Robinhood aims to make active trading more accessible and affordable for beginners. It has quickly become a household name for its competitive fees, user-friendly interface, and high-tech trading solutions. However, Robinhood has a history of gamifying trading, which could encourage less-experienced investors to take on unnecessary risk.
Still, Robinhood has been a pioneer in the investing space for a number of years. It was the first investment app to offer IRA matching contributions and the first discount brokerage to offer commission-free trading of stocks and ETFs. You can easily trade stocks, ETFs, crypto, options, and futures all on the same platform.
Although beginners are Robinhood's main audience, more experienced investors can benefit from the platform's low margin rates, Morningstar research, advanced market data from Nasdaq, and detailed charting capabilities. Stocks and ETFs can be traded 24 hours a day, five days a week — a perk not typically available on discount brokerages.
Robinhood's main platform is its mobile app, but it launched its more advanced browser trading platform, Robinhood Legend, in 2024. The Legend platform is free and includes various charting features, drawing tools, and technical indicators.
Customer support is available 24/7 on Robinhood's chat function. Phone support hours are from 7 a.m. to 9 p.m. ET, with brokerage account support available during the weekdays. Additional helpful resources include Robinhood's detailed educational library, YouTube channel, and expert commentary on the Investor's Guild blog.
Robinhood is a strong pick for people who understand the risk of cryptocurrency and are ready to start active trading. However, if you have never invested money before or you're looking for a hands-off option, you should start with passive investing that you can set up through alternative investing apps or brokerages. Robinhood isn't a good choice for true beginners or those searching for mutual funds.
Robinhood's mobile app has a rating of 4.2/5 on the Apple Store and 4.2/5 on Google Play.
Ways to Invest with Robinhood
There's no minimum to open a Robinhood brokerage account. You can start trading within an hour of signing up after providing your personal information, Social Security number, and bank account information. However, deposits of $1,000 or more can take up to five business days to process.
Robinhood Investing Account
Robinhood offers over 10,000 US-listed stocks and ETFs with no commission through the brokerage's 24-hour market, which is open from Sunday 8 p.m. to Friday 8 p.m. ET. After answering a few questions on the mobile app, Robinhood provides first-trade recommendations based on your preferences (not available in Massachusetts). This feature is only available for first investments.
American Depositary Receipts (ADRs) listed on US exchanges are also available. Robinhood offers 600+ ADRs to invest in, excluding those subject to local financial transaction taxes. Robinhood does not have stocks listed on foreign exchanges, nor does it offer bonds or mutual funds.
Investors can buy fractional shares starting at $1 for easier and more affordable portfolio diversification.
Most of Robinhood's securities don't require a minimum order size, but you must make minimum opening deposits when trading fractional shares or on margin.
Robinhood Gold
A Robinhood Gold membership has no minimum balance requirement and offers a suite of additional perks like a 3% IRA match, lower trading fees, access to Morningstar research reports and level II Nasdaq market data, and up to $2.5 million in FDIC insurance.
To be a Gold member, you must pay a $5 monthly subscription fee (or $50 per year), but you can sign up for 30 free days.
Gold members can earn 4.00% interest on uninvested cash in their brokerage accounts. Non-Gold members can earn 0.01% if enrolled in a cash sweep.
Gold members are also the only Robinhood users eligible for a Robinhood Gold credit card.
Private banking is planned to be offered to members later in 2025.
Robinhood Margin Trading
Margin trading is available for accounts with balances of at least $2,000. Robinhood's margin rates are some of the lowest in the industry, ranging from 4.7% to 5.75% (compare this to Charles Schwab's rates of 10.825% and 12.575%). Interest rates are calculated at the end of each trading day based on settled margin balances and are charged to your account every 30 days.
If you are a Robinhood Gold member, your subscription includes the first $1,000 when trading on margin.
You'll also need a portfolio balance of at least $25,000 for pattern-day trading; otherwise, you won't be able to continue trading. Pattern-day trading rules require Robinhood to flag your account if you make four or more day trades within five trading days, and trades represent over 6% of your total trades in that same period. Robinhood does provide a one-time courtesy PDT flag removal.
Robinhood Options
Options contracts are an advanced investment strategy. Robinhood formerly required its users to have a margin account for options trading, but now you can trade options with a regular cash account. That said, only experienced investors who understand the additional risks of trading options should participate.
Options trading hours are from 9:20 a.m. to 4 p.m. ET, Monday through Friday.
Robinhood options trading levels are:
- Level 2: Access to basic strategies, including buying long calls and puts, selling covered calls, and selling cash-secured puts
- Level 3: Access to more advanced strategies, including long straddles and strangles, call debit and credit spread, and condors and butterflies
Robinhood also offers index options for major indexes, such as the S&P 500, S&P mini index, Russell 2000, CBOE volatility index, and Nasdaq 100.
Options traders get access to modifiable technical indicators, such as relative strength index, moving average convergence divergence, and moving average.
Use the investing app's options rolling feature to adjust or extend your options position. Investors can customize trading strategies and easily build spreads with Robinhood's Strategy Builder. Watchlists are also available.
Robinhood Futures
Similar to offerings found on the best online commodity brokers, Robinhood futures are contracts between two parties in which an asset will be bought or sold on a specific date for a set price.
Robinhood offers stock indexes, energies, currencies, metals, and cryptocurrency futures. Futures don't have pattern-day trading rules. Fees for futures trading are lower than competitors, with Gold members only paying $0.50 per contract.
Robinhood Crypto
Robinhood's commission-free rule also applies to cryptocurrencies. You only need $1 to start diversifying your portfolio with crypto, and you can use any funds deposited into your brokerage account to purchase cryptocurrencies through Robinhood Crypto.
You can trade various digital currencies, such as bitcoin, dogecoin, and ether. However, Robinhood's crypto selection is significantly more limited than that of larger exchanges like Coinbase or Kraken.
Crypto tools on Robinhood include recurring buys, custom price alerts, and charting options (line charts and candlestick charts).
The Robinhood app includes a self-custody wallet where investors buy, sell, and swap various coins and tokens. Most users' coins are held in cold storage for extra security.
Before its wallet launch, Robinhood couldn't transfer crypto from or to external wallet addresses. But now, you can send any crypto assets to your chosen wallet.
In addition, Robinhood lets users exchange crypto without network fees, store NFTs and access NFT marketplaces, use DeFi protocols, and connect to DeFi apps.
Robinhood Legend
Robinhood Legend is the platform's free browser trading platform featuring professional-grade trading technology. Compared to its mobile app, Robinhood Legend offers a greater selection of powerful charts and advanced tools and features. Experienced investors get access to custom layouts, fast trade execution, and real-time market data.
If you frequently trade options, Robinhood Legend is certainly a platform worth considering. In addition to commission-free trades, Legend provides a similar intuitive experience to Robinhood's core mobile platform.
Despite being for investors seeking a more professional setup, Robinhood Legend is still easy to navigate and offers customizable features. You can choose a pre-built template or customize your layout with a wide range of widgets, including the ability to display up to eight charts at once.
Trades can be executed directly from the Roinhood dashboard.
Robinhood Strategies
Robinhood's new robo-advisor, Robinhood Strategies, provides managed portfolios with low expense ratios (0.06% to 0.10%) and a low $50 minimum investment. Strategies portfolios are available as individual brokerage accounts or IRAs. Robinhood plans to offer managed joint accounts in the near future.
While Robinhood Strategies is a robo-advisor, portfolios are actively managed by a team of professional advisors and can be rebalanced as needed. However, you can't directly contact an advisor.
Your risk tolerance, time horizon, and goals determine the investments in your Robinhood Strategies portfolio. But only accounts of $500 or more can add individual stocks. Otherwise, you are limited to ETFs.
Uninvested cash in your Strategies managed account earns a 4% interest rate.
The biggest downside of Robinhood Strategies is that managed IRAs do not receive matching contributions.
Robinhood Cortex
The same day Robinhood launched its managed portfolios, the platform also announced its upcoming AI-powered investment tool, Robinhood Cortex. Cortex's main function is to provide market insight and analysis.
Cortex will first be offered to Gold members sometime in 2025.
Robinhood IPOs
Robinhood has IPO access. Unlike other popular brokerages that require a minimum household asset size for investors who want to take advantage of the IPO offer price, Robinhood says it has no minimum balance or special status requirements.
This investment offering is best for traders who want to buy a company's IPO shares before they're listed on an exchange for the public. A big downside is that you aren't guaranteed to receive IPO shares when you request them. This is because Robinhood gets a limited amount of shares of each IPO.
Robinhood is also not an underwriter for companies issuing IPOs and will only get access to initial public stock when invited to participate by investment banks.
Robinhood IRAs
Robinhood provides IRAs for those looking to build long-term wealth through a retirement account. The investment app offers traditional and Roth IRAs, with commission-free trades and matching contributions.
Otherwise, retirement portfolios are self-directed. IRAs mainly invest in stocks and ETFs, but certain qualified investors can also trade options.
Robinhood currently has a promotional offer for an unlimited 2% match when you transfer an IRA to Robinhood with a Gold membership by April 30. If you max out your 2024 contributions by April 15, Robinhood Gold provides you with a 3% match bonus up to $420. Non-gold members earn a 1% match.
Robinhood can reclaim its matching contributions if you transfer the funds out within five years of opening the account.
Robinhood Fees
A Robinhood brokerage account has no minimum investment requirement and no annual fees. However, to upgrade to Robinhood Gold, you must pay $5 monthly or $50 annually.
There is a 1.75% fee on instant debit card or bank account withdrawals, and there is a $100 transfer fee if you withdraw from Robinhood to another broker.
Trading fees on Robinhood include:
- ADRs fees: Usually $0.01 to $0.03 per share
- Options fees: $0.04 fee per contract or $0.50 per index option (index options are $0.35% with Gold)
- Futures fees: $0.75% per contract traded ($0.50 with Gold); NFA regulatory fee of $0.02
- Margin interest rates: ranging from 4.7% to 5.75%
Robinhood Strategies charges an annual 0.25% management fee. Gold members' management fees are capped at $250 per year.
Expense ratios for Strategies portfolios fall around 0.10% for ETF portfolios and 0.06% for mixed ETF and stock portfolios.
Robinhood Trustworthiness and Security
Robinhood has multiple security features to protect users' investments and personal information. Security measures include data encryption, two-factor authentication, and secure servers.
Robinhood is a member of the Securities Investor Protection Corporation, offering insurance for securities up to $500,000 and coverage for cash up to $250,000. The platform is also a registered broker-dealer. Gold members get up to $2.5 million in FDIC coverage.
Robinhood has an A rating with the Better Business Bureau. However, the BBB says the brokerage has a pattern of complaints showing multiple users could not withdraw funds from their investing accounts.
On January 13, 2025, Robinhood agreed to pay $45 million in penalties to settle charges from the SEC that accused the company of violating over ten separate securities law provisions, including failing to accurately report trading activity, maintain books and records, and safeguard customer information.
On October 25, 2024, a class action lawsuit from the US District Court for the Northern District of California was filed against Robinhood for allegedly failing to pay customers a reasonable rate of interest through the brokerage's deposit sweep program. Robinhood denies these allegations. This lawsuit is still pending.
On September 4, 2024, Robinhood agreed to pay $3.9 million in a settlement with California Attorney General Rob Bonta. The California Department of Justice investigated Robinhood and concluded that the brokerage failed to disclose certain aspects of its trading and order-handling arrangements.
On January 18, 2024, Robinhood agreed to pay a $7.5 million settlement after Massachusetts Secretary of State Bill Galvin alleged that the platform used "gamification" strategies to encourage young, inexperienced customers to make risky trades. The original enforcement action was filed in 2020. The deputy general counsel and head of government affairs said the deal "resolves historical matters dating back to 2021 that do not reflect Robinhood today."
In 2021, Robinhood faced intense scrutiny after it halted trading on several stocks — namely GameStop (GME) and AMC Entertainment (AMC) — which skyrocketed due to the efforts of members of a Reddit forum called r/WallStreetBets. The investment app eventually reopened trading on many of the stocks it had temporarily restricted, but its restrictions led to user retaliation and major lawsuits. In 2023, a federal judge dismissed a lawsuit brought by customers who were affected by the restrictions in GameStop trading.
How to Transfer Stocks Out of Robinhood
Before you start the transfer, Robinhood asks you to take care of any account restrictions or negative balances, as this will delay the process. To initiate the transfer, you must call your new brokerage and ask them to provide instructions to Robinhood and its clearing partner.
According to Robinhood's support page, you'll also need to ensure the transfer you've initiated is an ACATS (automated customer account transfer service) transfer. This means you can't use other stock delivery methods — such as transfer agent transfers or check transfers — when moving your stocks.
If the brokerage you're transferring to asks for your Robinhood Securities account number, you can find this information by clicking on the account icon in the bottom right corner of your mobile app, clicking Investing, and then copying the number at the top of the screen.
How Robinhood Makes Money
Instead of charging commissions, Robinhood makes money through payment for order flow. When a user makes a trade, Robinhood sends that trade to a third party that places many large orders simultaneously for a slight advantage. The larger company then compensates Robinhood. The brokerage also generates income from interest on securities and margin loans and with Robinhood Gold, a premium subscription service that charges a flat monthly fee.
Robinhood charges several fees for certain services and transactions, and it may pass on third-party costs to its customers. Learning when you might pay extra is good practice to avoid surprises when using the app.
If you use Robinhood, you won't pay annual fees, commission fees, inactivity fees, or fees for moving money to your bank account. But you'll pay a $5 monthly fee to upgrade to a Gold account and various service fees for requesting a paper statement. The brokerage will also pass on third-party costs, such as regulatory fees and out-of-network ATM fees, to you. It's possible to avoid some of these costs, but you'll need to understand when they may apply.
How to Minimize Robinhood Fees
When you open a Robinhood account, you're already avoiding fees that other brokerages charge. But if you want to minimize some of the other costs of using Robinhood, you can try the following.
- Avoid the upgrade: Consider using the free account instead of upgrading to Gold.
- Research fees before buying: Before placing a trade or requesting any services, visit Robinhood's support page and look for information about fees and when they apply.
- Search for in-network ATMs: You can withdraw cash from your Robinhood account for free using a debit card at participating stores and at in-network ATMs. Tap the "Find ATMs" button in your Robinhood app to find the nearest withdrawal locations.
- Check out the foreign stock: Before buying shares from a foreign company, find information about potential fees from the bank that issues the American Depositary receipt.
- Go paperless: Instead of paying for paper monthly statements and confirmations, choose the electronic versions.
- Transfer to your own bank account: Robinhood charges a fee when transferring money to a competing brokerage but not to your own bank account. If you need to pull money out of your Robinhood account, consider moving it to your bank first and then investing elsewhere.
Robinhood Alternatives
Here's how Robinhood compares.
Robinhood vs. Fidelity
Fidelity is one of the top online brokers for automated investing, educational resources, investment options, and low-cost trading. Robinhood and Fidelity Investments both offer commission-free trading on multiple investment types, but you'll have a wider range of investment options at Fidelity than you will with Robinhood.
Fidelity also offers managed portfolios but with a much higher $5,000 minimum. However, Fidelity offers exposure to international stocks and mutual funds, while Robinhood does not offer foreign shares or mutual funds.
True beginners wanting low-cost passive investing should consider Fidelity Go, one of the best robo-advisors. It offers free portfolio management for accounts under $25,000. You only need $10 to open a Fidelity Go account, whereas you need $50 with Robinhood Strategies and a 0.25% management fee.
Investors more interested in active trading and advanced trading and charting capabilities will find Robinhood a stronger choice, especially for options trading. Robinhood also offers some of the lowest margin rates among its competitors.
Robinhood vs. SoFi Investing
SoFi® is an investment app suitable for all kinds of investors but is generally best for true beginners and those who prefer a passive investment style. Robinhood and SoFi Active Invest® have similar investment offerings, but Robinhood is the cheaper option when it comes to trading fees, making it the better option for active traders.
If you like the sound of active trading and don't mind doing some research on your investments, Robinhood's low fees and commission-free securities could be a good fit.
Why You Should Trust Us: How We Reviewed Robinhood
Robinhood was reviewed using Business Insider's rating methodology for investing platforms. Betterment online brokerage and robo-advisory services were compared to other investment apps based on their account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 1 and 5.
Business Insider's Overall Robinhood Rating
| Feature | Insider rating (out of 5) |
| Fees | 4.50 |
| Investment selection | 4.00 |
| Security | 4.00 |
| Ethics | 3.00 |
| Access | 3.50 |
| Customer service | 4.00 |
| Overall score | 3.88 |
FAQs
Is there a monthly fee for Robinhood?
A basic Robinhood brokerage account doesn't have a monthly fee. There is a monthly fee for Robinhood Gold, or you can pay $50 annually.
What is Robinhood. and how does it work?
Robinhood is an online brokerage for novice active investors wanting to invest in stocks, ETFs, options, and cryptocurrencies. Robinhood's commission-free trading and customization features offer investors a cost-effective and accessible approach to trading.
What are some criticisms or areas where Robinhood could improve?
Robinhood has received frequent criticism over the years for its methods of attracting younger, inexperienced investors, lackluster customer service, and restricting trades on GameStop stocks in 2021.
