Robinhood offers new investors a platform designed to lower market barriers, courtesy of its barebones interface and low fees. As of this review, Robinhood Gold members get over 4% interest on their uninvested brokerage cash — one of the highest interest rates among similar brokers — and that money is swept into an affiliated bank account. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people around the world achieve their financial goals through our investing services and financial advice.

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As of May 2025 Robinhood has a market cap of $58.26 Billion USD. This makes Robinhood the world’s 358th most valuable company by market cap according to our data. The market capitalization, commonly called market cap, is the total market value of a publicly traded company’s outstanding shares and is commonly used to measure how much a company is worth. Our reviewers — who are writers and editors on NerdWallet’s content team — hands-on test every online broker platform in our analysis. That way, we’re able to report on every aspect of the user experience, from funding a new account to actually placing trades.

Can you trade international stocks with Robinhood?

For example, bank accounts are insured by the FDIC, while brokerage accounts are protected by the SIPC (Securities Investor Protection Corporation), which covers securities, not cash. This distinction is key when considering where to keep your assets. Mutual funds and bonds aren’t supported, which can help build a diversified, long-term portfolio. Robinhood does, however, offer access to more than 650 foreign companies via American Depository Receipts.

Plans are not recommendations of a Plan overall or its individual holdings or default allocations. Plans are created using defined, objective criteria based on the white coat investor generally accepted investment theory; they are not based on your needs or risk profile. You are responsible for establishing and maintaining allocations among assets within your Plan. Plans involve continuous investments, regardless of market conditions.

There’s no easy way to keep tabs on the overall market; major indices (like the S&P 500 and Nasdaq composite) are included but they aren’t prominently displayed. However, when assessing the market at a glance, treasurys really do matter, and their absence makes for an incomplete view of the overall market. The options chain feels basic and lacks the depth and detail sought after by sophisticated traders. That said, the trade confirmation experience was excellent, better than most brokers I’ve used. The interactive profit/loss chart clearly showed profitability, breakeven points, and risk.

It also offers exchange-traded funds, including index and bond ETFs, and it’s working on launching futures trading in the months ahead. In late 2024, Robinhood also briefly offered a prediction market that allowed investors to bet on the 2024 election. We test all available trading platforms for each broker and evaluate them based on a host of data-driven variables.

Robinhood’s mobile-first platform is designed with on-the-go traders in mind. 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 fibonacci forex 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. You can trade a variety of assets, including stocks, exchange-traded funds, options, cryptocurrency and American Depository Receipts, on Robinhood. ADRs are bank-issued certificates representing shares in a foreign company. They trade on U.S. stock exchanges even if the foreign stock itself does not.

Can you trade penny stocks with Robinhood?

  • SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner.
  • Robinhood is not a comprehensive brokerage, which means its range of offerings is somewhat limited.
  • Customers must be signed into their account to request a callback from Robinhood.

As for your invested funds, Robinhood is a member of the Securities Investor Protection Corp, or SIPC, which protects up to $500,000—including $250,000 of cash—of securities of its members’ clients. If you’re dipping your toe into crypto investing, remember that SIPC does not protect cryptocurrency investments through Robinhood Crypto. All investment comes with a risk of loss, but like other brokers we review, Robinhood carries several types of insurance that would protect customer funds in the event that Robinhood or its partner banks became insolvent. Gold members are also eligible for the Robinhood Gold Card, a credit card that offers 3% cash back on all purchases, and 5% cash back on travel purchases booked through the Robinhood travel portal. The card has no additional annual fees and no foreign transaction fees, and comes with perks like concierge service.

So while it’s true you can start investing with Robinhood in no time, users should be certain they understand the risks of investing before diving in. For existing Canadian brokerages like Wealthsimple Trade, Questrade, and others, this is a wake-up call. Robinhood’s entry isn’t just a new competitor; it’s a proven disruptor with a track record of forcing incumbents to rethink their fee structures, platforms, and customer experiences. Many of the traders have come to realize that trading offers a far more efficient path to achieving financial goals than simply parking money in low-interest accounts, he added. We recommend comparing brokerage options to ensure the account you’re selecting is the best fit for you. To make your search easier, here’s a short list of our best trading platforms of 2025.

Our goal is to help every Canadian achieve financial freedom and make all levels of investors smarter, happier, and richer. Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. The available research on day trading suggests that most active traders lose money. Jessica Inskip is Director of Investor Research at StockBrokers.com, bringing 15 years of experience in brokerage and trading strategy. A former FINRA-licensed rep, she held Series 7, 63, 66, and 4 licenses.

Robinhood has made efforts to reassure investors about the safety of its platform — including a guarantee that it will reimburse 100% of direct losses due to unauthorized account activity that isn’t the fault of the customer. If you’re accustomed to using a smartphone — and Robinhood’s target user base obviously is — you’ll find the sign up and account funding process quick and painless. It all happens within the app in a matter of minutes, with just a few quick questions that gather your personal information, contact details, Social Security number and means of funding your account. The company says approved customers are notified in less than an hour, at which point they can initiate bank transfers. Robinhood’s mobile and web platforms are known for their smooth sign-up, funding and trading processes. The broker now also offers a desktop platform, Robinhood Legend.

  • Custodial and clearing services used by Atomic Brokerage can be found on its BrokerCheck report.
  • That way, we’re able to report on every aspect of the user experience, from funding a new account to actually placing trades.
  • He has been a full-time Motley Fool employee since 2012 and is a former advisor and analyst for multiple Motley Fool services.

The app is intuitive, easy to navigate, and packed with educational resources that make learning to invest accessible and enjoyable. Robinhood is an FDIC-insured investment platform providing up to $2.5 million in protection per customer, but only for Gold users. Robinhood also provides SIPC coverage up to $500,000 for securities. 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.

Industry: Capital Market

So while the lack of mutual funds isn’t a dealbreaker, it is something to consider. Robinhood offers a 1% match on IRA contributions — a rare perk in the brokerage world. If you want an even bigger match, Robinhood Gold members can unlock a 3% IRA match for a small monthly fee. This is a compelling feature for anyone focused on long-term financial goals. However, Robinhood customers can trade company shares listed on the NASDAQ and NYSE whose stock price is currently below $1.00.

Matt is the co-author of The Astonishing Collapse of MF Global as well as the creator and former co-host of The Motley Fool’s Industry Focus podcast. These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Founded in 2013 and based in Menlo Park, California, Robinhood is an online broker that has raised $2.2 billion in venture capital funding and has more than 14 million monthly active users. The millennial- and Gen Z-focused broker is best known for offering $0 stock, ETF, options and cryptocurrency trades via an easy-to-use website and mobile trading app. Webull is best for beginners and intermediate investors in search of commission-free investments, expert market data, extended hours trading, and robo-advice. The app could also be a good fit for futures and options traders looking for an easy-to-navigate 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.

Robinhood Gold is an account offering premium services available for a $5 monthly fee. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used.

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Strategies portfolios are available as individual brokerage accounts or IRAs. It’s important to note, fxcm canada review however, that investors are generally divided about whether Robinhood is a reliable platform. Its ease-of-use, transparency, low fees, and robust charting capabilities have won over several new and seasoned investors who are dedicated to the Robinhood brand — you can even buy Robinhood merch. 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. Business Insider’s personal finance team compared Robinhood to the best stock trading apps and found it to be an industry-leading platform for newbie active traders. At $49.37, Robinhood remains a buy, though its “overvalued” sentiment warrants a cautious approach.