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What You Must Know About Robinhood Investment App?

Speaking of investing, fintech is pretty much dominating this branch. You find almost anything to trade with – from stocks to cryptocurrency. Today, trading choices are almost endless. Especially when you consider various investment apps, brokerages, online exchanges, etc. But, people often turn to more affordable or even free investing apps. Today, one of the best known investing applications is Robinhood. But, what about its safety? Can we easily use it? How can we be sure we’re not gonna waste our money? Here are some answers…

What Is Robinhood App?

Robinhood is one of the online investing apps which has been developing rapidly in recent years. This very popular application was innovated by its founders B.Bhatt and V.Tenev.

This extraordinary app had its lightning growth since 2013 when it was launched. After that period, more than 6 million people started using this investor application. The popularity of this application can be appreciated by the fact that stock trading is fully commission-free. This application allows its users to invest. You can choose between stocks, ETFs, cryptocurrency and many other things. The Robinhood is specific for its free-fee model. This fabulous app will enable you to trade without any costs. The first time it was launched with Apple phones. Soon, its popularity was rising, and it was developed for Android versions as well. The model of this app easy-accessible. What makes its users happy is the fact that it doesn’t require any money in your account. Whatmore, it offers you the possibility to trade without any commission.

Source: Business – CNN.com

These offers are wide and include even trading with cryptocurrency. Though it has many trading options, Robinhood is similar to every other brokerage.  That means you must qualify to start trading this way. For those who consider them more serious trade-game players, there is also a Robinhood Gold package. This is a premium account that allows margin trading for its users. Overall, this application will offer you more than a decent choice of investment products. The application can be operated very easy. Therefore, it has become quite popular. Especially among the younger population of subscribers.

Matters Of Safety

As with any digital business, we are always wondering about possible risks. Therefore, the safety measures are of extreme importance. Though investment apps and online brokerages have taken all the precautions this question is always justified. After all, it’s our money floating online.

Since this is a type of brokerage, Robinhood is regulated by the securities commission. This means that a number of safety measures have been taken. That includes users, their data and their money. Numerous economic and financial experts agree that this app offers multiple benefits. Money flowing over the Robinhood is protected for securities as well as cash claims. Just like with any other brokerage, it is operating under protection and law regulations. For more information about it, click here.

This fact is quite comforting for all investors who are users of this app. In practice, this means they can trade without any doubt or fear that their money will remain lost somewhere in the virtual world.

Source: Dribbble

How Does Robinhood Earn Money?

Although this app is free of charge and doesn’t charge direct cash, it still has its ways of earning. Namely, Robinhood also operates through other channels. Loans, rebates, interests and premium accounts ascribe to profits they made. As for free use of the app, this only considers the basic app version. If users opt for the Gold Package, they will have to pay a monthly fee which is six dollars. That’s not much if you keep in mind the fact that such a package allows you up to 1000 dollars in margins.

This option gives users the ability to run their business through money from their accounts. When it comes to earnings, Robinhood makes a profit by granting loans at marginal interest rates. The whole process is very similar to banking. Robinhood’s profits are earned both through rebates and order flow payments, as well as from high-frequency trading.

Source: Forex trading

Should You Go Ahead With The Investment?

That primarily depends on your goals, knowledge and trading experience. Many traders managed quite well. Their main goal was to keep their costs low and their returns as high as possible. In such cases, an investment app such as Robinhood can be extremely beneficial.