Amidst growing demand and investment in cryptocurrencies, new innovations are constantly emerging to efficiently utilize this platform and maximize profit. To take lead in this revolution, several companies are adopting different market strategies. From developing real-life cryptocurrencies to no-commission trading features, the buzz is not going to fade anytime soon. Robinhood Crypto is no different from others. How? Let’s find out.
Robinhood Crypto: A free-trading and investor-friendly app offering variety of stocks and ETFs, which can be bought without paying commissions or fees.
Robinhood makes a big splash with the launch of cryptocurrency trading this year. This year the company launched zero-fee trading service for Bitcoin and Ethereum in five states in the US. Also, investors can track and monitor data for 16 cryptocurrencies around the world. In comparison to other developments, Robinhood has set a benchmark in terms of features.
What makes Robinhood Unique?
Zero fee and Commission: Robinhood is delivering 100% commission-free stock and ETF trades, which is significant for investors who trade frequently. because dollar saved in commissions and fees is a dollar totaled to returns.
Minimum Balance in account: Unlike other brokers, who generally charge $1,000 or more to open an account, investors doesn’t need any account balance to start trading in cryptocurrency, when it comes to Robinhood.
P.S. When it comes to margin account, you will need $2,000 minimum portfolio balance. This is in accordance to Financial Industry Regulatory Authority regulation
Best for Smartphone Users: Robinhood’s swift and trouble-free sign-up and account funding process in smartphones, gives an edge to the company over others. Investors can initiate bank transfers real quick because their customer approval procedures take less than an hour.
Easy verification procedure: The company has ties with major banks that allows instant verification. Hence, relieving users from the hassle of informing every micro-deposit to the account to verify information. Generally, bank transfers take four to five days to complete the trading procedure.
While the company has added several advantages into the app, there are certain drawbacks too.
Streamlined interface: As compared to typical online stock broker, Robinhood doesn’t provide all the services related to trading. Robinhood doesn’t offer a full-service online trading platform and also, a range of available assets are lacking like absence of mutual funds.
Restricted securities: Robinhood doesn’t support automatic dividend reinvestment program. It means that dividends are credited to accounts as cash rather than reinvesting.
Single account: Robinhood supports individual taxable accounts only. Hence before investing in such brokerage account, investors should invest 15% of their income for retirement.
Lack of tools and resources: In comparison to brokers like Merrill Edge and Fidelity, Robinhood is way far behind in terms of tools and resources. For instance, absence of robust research reports and analysis software of other brokers, lack of educational resources for young investors etc.
The Best of Robinhood
Track market data of cryptocurrencies: In Robinhood app, you can add 16 cryptocurrencies to your watchlist. It means you can read cryptocurrencies news, monitor market data and create custom price alerts.
Robinhood Feed: Robinhood launched this app as social media-type platform which will allow investors to discuss about cryptocurrencies in the market, other news related to the markets in real-time. But this platform is currently available for limited people.
Robinhood Gold: A premium service of Robinhood that allows investors to trade in extended-hours and offers them to trade on margin, known as borrowed money. In order to have access to this service, one must have a minimum balance of $2,000.
Is Robinhood right for us?
What’s better than free? The answer is probably “Nothing”. But in this era, “FREE” is just a marketing strategy to attract more and more customers. In fact, nothing is free is this world. It either cost you for the lifetime or as an addition to your bank statement. As far as Robinhood is considered, the service has just launched and is giving tough competition to Coinbase. Further, company is claiming that there are no hidden costs here. Hence, let’s customer decide whether it is right for them or not.
Robinhood does have some issues, but for investors it offers a platform that can swiftly execute trades and supports market orders. Also, the web version of Robinhood features unique stock collection, tools and research to research and discover new stocks. This was all about Robinhood. What are your thoughts on this? Do let us know in the comments section below!