Stock trading, stock market, cryptocurrencies, Crypto trading; I believe all these words are not new to any of us post lockdown. In fact, many of us went into researching how the stock market works, how to trade through a stock market app. We even came across several commercials insisting that a free Demat account can be opened at no extra cost, today we will be talking about one such app called Robinhood which is a UK-based stock trading app. It is to be noted that, Indian users CANNOT ACCESS the Robinhood app.
Robinhood is an American commission-free stock trading app that was launched on the year 18th April 2013 by Vladimir Tenev and Baiju Bhatt. This mobile app allows the users to perform commission-free trade whereas most other company apps charge maker and taker fees for performing trading through them. In the Robinhood app, you can perform exchange-traded fund purchasing. Followed by the launch of the Robinhood app, it received so many positive comments from the users globally, also many criticized the app too.
Today we will be talking about what is Robin hood app, Robinhood status, why was it criticized, what's the hype behind the app, and if you're new to stock trading then don't worry as we'll also be covering what is stock trading. We advise you to kindly skip the Stock trading introduction if you already knew it! Let's get to the topic! Go on and read more to know more!
Robinhood is basically a commission-free trading app that allows its user to buy and sell stocks. The name "Robinhood" sounds familiar right? rings a bell? Yeah, it is a character that gives money to the poor by stealing from the riches. Just like the name sounds, the motto behind the creation of this app is providing universal access to the financial market, it's not just for the wealthy.
So, this app does not cost any additional fee or brokerage to its users and allows its users to purchase and sell stocks i.e. trading. Its target audience is millennial traders. The app allows greater returns for its users and many newbies have jumped into Robinhood since lockdown. The app grew to pool a large number of investors who are actually newbies who got attracted towards its name and the services it offers. The app is very used to use and is very understandable and comes in handy while trading whereas other apps may look quite complicated for the new users.
One of the big advantages is that it allows even the small traders to enter the financial market, this leads to disturbance of the stock market.
Although, Robinhood app is very great the app actually lacks some specific functions and an experienced trader might find the app to be insufficient to trade.
Robinhood website also provides articles related to trading: how to trade and all the basics of trading that allows the millennial traders to get a brief understanding of the financial market and stock trading.
As of now, the Robinhood platform allows users to perform trading of:
Robinhood also pays interest on cash to its customers. This means the cash left untouched for investment in the user's Robinhood wallet is entitled to receive interest. The app also makes it clear that no hidden fee is charged for its account holders.
Robinhood gold, Robinhood gold allows its users to get access to the research report, Market data, access to investing on margin, and instant deposits. They charge five dollars monthly fee.
In October 2020, Robinhood reported that somewhere around 2000 of its account holders' data was hacked and theft was unidentified.
Followed by this incident, many people lost interest in Robinhood after which the company asked its users to perform two-factor authentication for maintaining their privacy within the app. Even after two-factor authentication, some users reported that their accounts were used anonymously. This made the users lose trust in the app and many started disconnecting from the app.
It's a platform where stocks are bought and sold by traders from public listed companies. A new user needs to have a Demat account to perform trading of stocks.
A user who is interested to trade can trade through professional Government approved platforms that allow direct purchasing and selling of stocks from listed companies, it is also to be noted that many professional traders prefer this method.
Private company apps also allow the users to perform stock trading and it charges them with brokerage and service charges.
Yes, Robinhood does not charge any additional fees to its users for performing stock trading.
Yes, The app's interface is designed in such a way that it will provide easy access for trading for newcomers.
Baiju Bhatt and Vladimir Tenev are the co-founders of Robinhood.
That's it for now readers! Stay tuned for more updates.
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