Shortly after I started investing in Acorns I got the itch to start picking my own stocks. I gave myself a crash course on stock investing with Investopedia and started researching stocks with Yahoo Finance.
There are traditional platforms to choose from like TD Ameritrade and Charles Schwab, among others, who have a stellar reputation with a strong pedigree for online investing. Most of the traditional online investing platforms charge commission per transaction and may offer so many tools that it becomes overwhelming for a first time investor. But there’s a new player to the game called Robinhood. The investing platform started strictly as a phone app where it was streamlined for ease of use to invest with your thumb.The thrills free app is extremely user-friendly.
Robinhood does not charge commission but instead makes their money off of the unspent money in your account. Essentially when you deposit money into your Robinhood account it sits in a savings account that earns interest but is paid to Robinhood. If your money is invested then Robinhood does not profit unless you exceed your 2 commission free trades a day.
What Robinhood offers:
- 2 Commission free trades a day
- Access to equities and ETF’s from the NYSE and NASDAQ
- Crypto currencies
- Easy to use phone app and website that recently went live.
Not offered by Robinhood:
- Research tools
- Price alerts
- Dividend Reinvestment Program (DRIP)
- Strong history as an online investing institution
As a part-time investor Robinhood is the perfect tool for me. I don’t exceed 2 trades a day, I don’t think I exceed 2 trades a week. It is perfect for the buy and hold investor as there are no fees charged for keeping an open account.
Pro tip: You can link your Robinhood account to Yahoo Finance. Once linked you can view your portfolio in Yahoo Finance and have access to research tools not offered by Robinhood for free.
For a free stock for opening a Robinhood account use my referral code here: http://share.robinhood.com/gregorh273