Why is RobinHood so popular?
Robinhood Markets, Inc. is an American company that provides financial services. Robinhood Inc. is known for developing and promoting trades of stocks that are free of commission, funds that are traded through an exchange, and a mobile app for cryptocurrency services.
Robinhood is a broker-dealer that is regulated by The Financial Industry Regulatory Authority (FINRA). They are also registered with the U.S. Securities and Exchange Commission. Additionally, they are an associate of the Securities Investor Protection Corporation.
Robinhood’s revenue primarily comes from three sources: interest earned on customers’ cash balances, selling order information to high-frequency traders, and margin lending. As of the year 2021, Robinhood has 31 million registered users and 1.6 million people listed on its waitlist for its cryptocurrency wallet
- Robinhood’s mobile application is a highly accessible and easy-to-use application. Moreover, Robinhood provides a web-based platform, and it is a company that keeps mobile as its priority. This mobile-first policy is a crucial area of distinction between Robinhood and its competitions. The mobile app is not strong. The application’s features are actually quite fundamental. However, for investors who are entirely aware of what they want, the Robinhood mobile application is quite enough to rapidly go from screen-to-screen, and place and make their market trades.
- Robinhood allows the trading of stocks, options contracts, ETFs, and cryptocurrency free of charge. Robinhood’s platform lets you purchase partially minute shares with as little as $1 going into it. Robinhood will automate the reinvestments of any earned dividends from stocks or ETFs — provided the positions support fractional share trading if you enable the DRIP (dividend reinvestment program) in your account.
- One of Robinhood’s most essential features is the cash management feature that will let you earn upto .30% Annual Percentage Yield (APY). Also, you don’t have to pay any sort of ATM fees at any of the 75,000+ ATMs that are a part of their network. The recurring investment features allow you to automate a fixed dollar amount periodically as an investment, such as once per month or year.
- Costs: Robinhood is a genuine discount intermediary — in spite of the fact that its contributions may not be just about as strong as a few different financiers, Robinhood has the absolute most reduced costs in the business.
- Smoothed out interface: Robinhood is incredibly simple to utilize. So natural, truth be told, some have contended that it’s made complex exchanging methodologies, for example, choices exchanging, excessively open to unpracticed clients. Be that as it may, assuming your main objective is to fiddle with stocks, the managed down connection point is exceptionally advantageous.
- Free digital currency exchanging: Robinhood is as yet one of a handful of the agents that allows you to exchange cryptographic forms of money free of charge, so among stock financiers, it’s a stand apart element. Notwithstanding, assuming you contrast Robinhood’s crypto contributions with unadulterated play crypto businesses, that sparkle begins to blur.
- Initial public offering access: In 2021, Robinhood divulged another contribution that allows clients to partake in an organization’s first sale of stock or IPO. This has regularly been held for monetary establishments.
These various features of the Robinhood platform make it hold its ground among the competitors such as eTrade, Webull, Fidelity Investments, etc. It helps people who are new to investing and start with a small balance for investing. The simple interface and easy-to-use features on both the mobile application and website make it a seamless option when it comes to investing.