Robin Hood Account Review: Brokerage Fees, IRA Investing, Pros and Cons, Mutual Fund Offerings
Robin Hood Investing Review
Robinhood is a new online brokerage company that offers commission-free trading on their advanced mobile app. Unlike other traditional online
brokerages, Robinhood does not offer clients a website to trade stocks. Robinhood is a mobile-app only brokerage account. Robinhood has no
brick and mortar stores. The app is simple and well designed, but currently only offers brokerage accounts. The firm does not offer IRA,
HSA, or 401K accounts.
Robinhood Review - Pricing
US Listed & OTC Securities – Free trading refers to $0 commissions for Robinhood Financial self directed individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices.
All Broker-Assisted Phone Trades - $10/trade
Foreign Stock Transactions
Listed Foreign Securities - $50 a trade
Euroclear – $35 a trade
Canadian - $35 a trade
Foreign Security Cancel / Trade Adjustment - $15 per adjustment
Debit Balances – contact email@example.com
Robinhood Important Fees and Surcharges
Bank Transfer (ACH) Incoming - $0
Bank Transfer (ACH) Outgoing - $0
Domestic Wire Transfer - $25
International Wire Transfer - $50
Domestic Overnight Check Delivery - $35
Returned Check, ACH, Wire & Recall / Stop Payments - $30
Automated Customer Account Transfer Service
ACAT Incoming - $0
ACAT Outgoing - $75
Account Maintenance Fees
Electronic Statements & Confirms - $0
Paper Statements - $5
Paper Confirms - $2
Domestic Overnight Mail $50
International Overnight Mail - $50
Restricted Accounts - $10 + commissions
Worthless Securities Processing - $30 + other fees may apply
Tender Offer Order - $50
Regulatory Trading Fees
SEC - $18.40 per $1,000,000 of principal (sells only), rounded up to the nearest penny
TAF (Trading Activity Fee) - $0.000119 per share (equity sells), this fee is rounded up to the nearest penny and no greater than $5.95
- Commission free trades on U.S. listed securities
- Easy-to-use mobile application
- Real time market data
- Smart notifications sent directly to smartphone
- Fast execution on trades
- Easy to set up account
- Straightforward pricing and fees
- App is optimized for the Apple watch
- No dividend re-investment plan available at this time
- No desktop trading platform
- Limited stock and mutual fund research capability on mobile app
- Does not offer IRA, Health Savings Accounts, or 401k accounts
- No brick and mortar stores
- No options trading, mutual funds, or bonds
Robinhood Mobile App
Robinhood only offers commission free trades through their mobile app. Unlike other large online brokerages, the Robinhood mobile app lacks in-depth analysis of individual stocks and mutual funds. On the other hand, setting up an account and linking a bank account to the mobile app is an extremely easy process.
Secure sign and and PIN requirement ensures that the account is only accessed by the account owner.
Very basic overview of equity positions including shares owned, equity value, average cost and day’s percentage changed
Compared to other online brokerage apps, the Robinhood app does not feature detailed information on equities. For the investor looking for a commission free trading platform it does provide enough basic information, but more advanced investors will have to go elsewhere to research analyst estimates and option chains.
The account overview is very basic and shows stocks, stocks + cash, buying power, uncleared deposits, unsettled funds, reserved cash, and withdrawable cash.
One of the best features of the Robinhood trading app is the ease at which clients can set up accounts, link accounts, and transfer money to and from banks.
Robinhood features a smart notification setting to alert account holders of stock splits, news announcements, and dividends.
One of the biggest drawbacks to the Robinhood brokerage account is the lack of desktop website to trade. The company’s website only features information, FAQ’s and fee schedules. There’s no way to sign in to your account through the company’s website. Trading, viewing account balances, and transferring money to and from a bank account is only available through the mobile trading app.
Robinhood Customer Support
The commission free trading offered by Robinhood comes at the expense of no brick and mortar stores, and no listed phone
number for customer support. Robinhood only offers an email address for customer support.
Robinhood is very slow to respond to inquiries and questions over emails. They do offer non-toll free phone number to call during market hours.
Research is lacking on the Robinhood mobile application. Other than very basic information about stocks, clients will find themselves consulting other sites before purchasing stocks. This limited research power allows Robinhood to provide commission free trading.
Brick and Mortar Stores
Some of the larger online brokerage houses offer brick and mortar stores where clients can receive advice and tips on their investments. Robinhood does not have a single physical store. This is another cost cutting measure to provide commission free trades.
Robinhood Investing Review Summary
For investors wanting commission free trading on a simple mobile application platform, Robinhood is the best option. For any serious investing
one should look at the other online brokerages.
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