Stock Traders are typically charged $5 to $10 per trade. For new and frequent traders, that adds up quickly and can really eat into returns. But trading app Robinhood is attempting to solve this issue for new traders especially those with small trading account by offering 100% commission-free trading on stocks that are listed on the major U.S. exchanges.
I have given this RobinHood trading app a full test run and so far I am very impressed with it. Here is a simple summary of the pros and cons…
- Free trades and decent execution is by far the top pro for this app. I use it on a Samsung Galaxy note and have made dozens of trades without a single glitch or issue. All FREE trades is really cool.
- My wife and I trade together and when I am busy she can log into the Robinhood app on her phone no matter where she or I are and see what I have been doing or place an order.
- Mobile trading is very liberating especially if you use a winning strategy like Connor Bruggemann who is a talented young trader who uses Robinhood when he is attending high school classes! So far he has made hundreds of thousands of dollars using Robinhood while on the move at school! Check out my interview with him HERE and his astonishing track record HERE.
- No function for shorting stocks is available yet although they may introduce this feature in the future.
- You cannot execute orders in pre-market or post-market hours.
- Timothy Sykes has warned against being distracted by the free operation of Robinhood, claiming many people have had issues with execution (not my experience so far). Tim Sykes also has a video out claiming that focusing on FREE is not a good way to become a stock trading millionaire and that the lack of features handicaps traders significantly.
Summary: I love this app despite Tim Sykes claiming it is ‘the most dangerous broker ever’ . I think for long biased swing traders can use it effectively and it has proven to be a powerful and reliable trading tool for me over the last few months.