Robinhood is a commission-free (and legitimate) brokerage firm.Â There model is to provide a no-frills free trades for individual stocks and ETFs.Â They are backed by Index Ventures, Google Ventures & Andreessen Horowitz and plan on making their money by charging the use of margin accounts when they are available.
You could think of them as the Ally bank of brokerage firms.Â They don’t have any customer outlets or any brick and mortar centers to provide services.Â They do have a simple app where “in three taps” you can buy a stock.Â It definitely seems simple and easy to use.Â Free trades are nice for those that like to stock pick and profit.
I have noticed a couple of downsides.
- Currently they don’t allow you to trade Index funds.Â Maybe they will pick up this functionality soon.
- They don’t have any stock screeners, research tips, or advice.Â This is definitely for a confident trader that can get their analysis elsewhere.
- They only have individual taxable accounts at this time.Â They are planning on setting up IRAs and joint accounts soon.
Take a look at their video!
[vimeo 87163777 w=500 h=281]