Takeaways
- Robinhood is a trading platform that lets users invest in stocks and other securities.
- Robinhood has commission-free trading and no minimum opening balance.
- New investors can start investing in stocks, ETFs, options, and cryptocurrency.
- In early 2025, Robinhood had over $204 billion in assets under custody.
- The Robinhood app allows for deposits from your checking or savings account and instant deposits of up to $50,000 (terms apply).
Overall App Review
Best for: New and beginner investors
Favorite Feature: The Robinhood Investing App offers fractional share ownership and DRIP programs, ideal for first-time investors. Our team thinks these offerings for micro-investing and immediate reinvestment make Robinhood a game-changer in the field.
Why we like it: The Robinhood Investing App is the perfect app to dip your toe into the world of investing in stocks, ETFs, stock options, and cryptocurrencies. From downloading the app to trading stocks, the entire process takes only a matter of minutes. Our team really loves the fractional ownership option.
The Robinhood platform makes our Best of Online Stock Brokerage Apps awards list because it is user-friendly and easy to navigate. With this app in hand, there are no gatekeepers to the world of investing. Our team loves how accessible it is for beginner investors. Robinhood offers both free and paid membership tiers, which you may want depending on your account balance, level of investment research, and trading patterns.
Take the Next Step:
on Robinhood’s Website
Robinhood Investing
Smart Money Rating: 4.8/5
Intro Offer: Sign Up and Get 1 Free Stock
Account Minimum: $0
Annual Fee: $0
Online brokerage firms with complex fee structures, intimidating platforms, and high entry requirements have traditionally dominated the investing world. Robinhood disrupted the landscape by offering commission-free trading in a clean, easy-to-use mobile app.
With millions of users and a significant influence on modern investing culture, Robinhood has become one of the most recognizable platforms in the fintech space. That’s why we chose to review Robinhood.
Robinhood has become a household name, so our team decided to give it a whirl. Prior users have rated the app, giving it a 4.3 on the App Store and a 4.2 on Google Play (with over 10 million downloads).[1][2] To conduct our independent review, we downloaded the Robinhood app to see how it works and how you could benefit. Here's what we found.
What Is Robinhood?
Robinhood is an online stock brokerage app that allows users to trade stocks, exchange-traded funds (ETFs), and options without paying trading commissions. It also allows you to trade cryptocurrencies, like Bitcoin and Ethereum.
Unlike traditional brokerages, Robinhood has no account minimums, and it has become especially popular with younger, tech-savvy users seeking a do-it-yourself approach to investing. The app has experienced explosive growth, and as of January 2025, Assets Under Custody (AUC) were $204 billion.[3]
Company Overview: Robinhood Markets Inc. (HOOD) is a publicly traded financial services company that trades on the Nasdaq Stock Exchange and operates the Robinhood app. The company offers accountholders access to its online trading platforms, credit cards, and Individual Retirement Accounts.
How Robinhood Works
Robinhood operates as a self-directed trading platform. Once you open and fund your account, you can buy and sell investments directly from your phone or desktop.
Here are some standout features you won’t want to miss:
- Commission-Free Trades: Robinhood pioneered the commission-free model. You can buy and sell stocks, ETFs, options, and cryptocurrencies with no per-trade fee. The platform makes money from payment for order flow, interest on cash balances, and optional premium services.
- User-Friendly Interface: The mobile and desktop apps are designed for simplicity, presenting charts, watchlists, and market data in a clean and accessible format. This design makes it easy for beginners to navigate, providing a feeling of information balance.
- Fractional Shares: Robinhood's feature of buying fractional shares of expensive stocks empowers users. Fractional shares can be purchased for as low as $1 in companies like Amazon or Tesla, regardless of the share price, making high-priced stocks more accessible.[4]
- Real-Time Quotes: Users receive real-time market data to make informed decisions. While the free version includes basic data, Robinhood Gold (more on this below) offers access to more in-depth analytics.
- Crypto Trading: Robinhood supports buying and selling cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and others, with no separate crypto wallet (Read more about How to Buy Bitcoin).
- Dividend Reinvestment (DRIP): Robinhood recently introduced automatic dividend reinvestment programs, allowing users to reinvest earnings from stocks and ETFs into additional shares.
Image source: Robinhood
How to Sign Up for Robinhood
Signing up for Robinhood is fast and free. Here's how it works:
- Download the Robinhood app or visit their website.
- Create an account using your email address, name, and contact information.
- Provide your Social Security number for identity verification.
- Link a bank account to fund your trading account.
- Begin investing with as little as $1 using fractional shares.
- The account approval process typically takes one to two business days.
How Much Does Robinhood Cost?
Robinhood's core features are entirely free of charge. Importantly, there are:
- No commission fees on trades.
- No account minimums.
- No fees for standard deposits or withdrawals.
Robinhood Gold ($5/month of $50 annually)
For users seeking additional features, Robinhood Gold is a premium subscription that includes:
- 4% APY on your uninvested brokerage cash (with cash sweep account)
- Professional research from Morningstar
- Level II market data from Nasdaq (more detailed pricing info)
- Margin investing (borrow to invest with interest)
- Larger instant deposits (up to $50,000 based on account size)
Read More: 7 Alternative Investments for 2025
Pros of Robinhood
1. Easy for Beginners: Robinhood's intuitive, simple interface avoids overwhelming users with unnecessary jargon or complicated tools. This allows you to get comfortable investing in stocks right out of the gate.
2. No Commission Fees: Commission-free trading allows users to invest frequently without worrying about transaction costs. No commissions give you permission to get used to the interface and let you set your own personal investing style. (Read more about stock traders).
3. Fractional Shares: This feature opens the door to investing in high-priced companies without needing hundreds of dollars to buy a full share. (Read more about the Average 401(k) Balance by Age).
4. Access to Crypto: Robinhood combines stock and crypto trading in one platform, eliminating the need for separate exchanges or wallets. (Read more about Hot Wallets).
5. Real-Time Trading: Trades execute instantly during market hours, and the app provides real-time pricing and alerts. (Read more about the Nasdaq stock market).
6. Access to Individual retirement accounts (IRA): Robinhood offered both Traditional IRAs and Roth IRAs to bolster your retirement savings. You can accelerate your retirement savings with these types of accounts. For investors focused on trying to retire early, these can be tremendously helpful accounts.
Cons of Robinhood
1. Limited Investment Options: Robinhood does not offer mutual funds or bonds, which might make it less suitable for long-term, diversified investment strategies.
2. Risk of Overtrading: The app's ease of use can lead to impulsive trading behavior, especially among newer investors. There are a few guardrails in place to prevent risky activity.
3. Limited Research Tools: While Robinhood Gold adds research options, the free version lacks in-depth analysis, portfolio planning, or educational support.
4. Controversial Business Model: Robinhood has faced criticism for its payment for order flow model, which involves routing trades to market makers who pay the platform. This practice may affect trade execution quality and was at the center of the 2021 Robinhood-GameStop Congressional hearing.[5]
5. No Live Customer Support: Robinhood has limited phone support. While you can now speak to a representative in certain situations, you may still need to rely on the platform's online resources or email support (support@robinhood.com) for more complex issues or general inquiries.
Is the Robinhood App Worth It?
We think Robinhood is a solid choice for beginner investors or anyone looking to start trading with minimal barriers to entry. Its low-cost structure and access to fractional shares make it easy to start with and learn the basics of investing.
However, long-term investors may find its limitations frustrating. If you want to learn, practice, and trade without paying fees, Robinhood is an effective gateway into the world of investing. But if you already have a high net worth with thousands of dollars to invest, we suggest you check out our Best Online Brokerage Accounts listing.
RobinHood App Review Methodology
Our team signed up for the RobinHood app and tested both the mobile app and desktop version. We explored the different features, using hands-on, real-world testing to better understand the user interface, speed and ease of account opening, and feel of the investing platform.
Smart Summary
Robinhood is a commission-free investing app that makes trading stocks, ETFs, options, and cryptocurrencies simple and accessible. The app has garnered millions of downloads due to its offering of no-account minimums, fractional shares, and a super clean trading interface, making it ideal for new investors. We think Robinhood is a great choice for beginner investors, new crypto fans, and casual traders.
Smart Money requires our expert writers to rely on trusted primary sources—academic research, government reports, expert interviews, original reporting, and peer-reviewed data—to deliver precise and up-to-date content. All of our content is thoroughly fact-checked. We also incorporate relevant research from reputable publishers when it aligns with our editorial focus. For a closer look at our rigorous journalistic standards, explore our editorial guidelines.
(1) App Store. Robinhood. Last Accessed May 27, 2025.
(2) Google Play. Robinhood. Last Accessed May 27, 2025.
(3) Robinhood. Robinhood Markets, Inc. Reports January 2025 Operating Data. Last Accessed May 27, 2025.
(4) Robinhood. Fractional Shares. Last Accessed May 27, 2025.
(5) Congress.gov. Hearing Before the United States House of Representatives Committee on Financial Services. Last Accessed May 27, 2025.
