ALERT: Are you a U.S. citizen? If not, then you will unfortunately not be able to sign up for a Robinhood account. CLICK HERE TO LEARN ABOUT OUR #1 RECOMMENDED BROKER FOR NON-U.S. CUSTOMERS!
(ALERT: After the Silicon Valley Bank collapse stirred up the public, many investors are questioning whether their money is safe with their chosen financial services companies. With a Robinhood IRA, your money is protected by the SIPC up to $500k, with $250k coverage for cash. PLUS, when you open a Robinhood IRA and brokerage account, your IRA contributions are matched at 1% and you can earn up to $1700 a year in FREE STOCK through referrals!)
Robinhood was born out of the friendship of Baiju and Vlad.
That’s right — two roommates from Stanford went on to build separate investment hedging software solutions in New York City.
Actually, that sounds about right!
Baiju and Vlad founded Robinhood because they saw an opportunity.
What was that opportunity?
That opportunity was to gift the next generation of traders precisely what they were looking for…
…commission-free trades and a $0 starting point.
Zero commission? Is this is a Robinhood scam?
Absolutely not!
Since 2013, Robinhood has grown into a household name with millions of investors.
The primary focus of Robinhood is to make the stock market simple.
But how does Robinhood make the stock market simple?
Robinhood lets people move money with elegantly designed systems and apps.
The payoff?
People that would have never invested are now investing (especially you so-called “Millenials”).
You can now invest without paying commissions and with virtually no money.
However, with any great idea, there are always skeptics.
After all, high cash entry points and steep trading fees are staples of the American stock market.
So, is Robinhood a scam?
You are about to find out (in less than 5 minutes!).
Robinhood Overview
Robinhood has built the backbone of the company off of the idea that investing should be for everyone.
So, what does this look like in practice?
Everyday people can invest, regardless of current knowledge or wealth.
Let’s say you have $5 to your name.
You can take your $5 to the stock market (via Robinhood) and invest in Apple, Amazon, Google, or any company you desire!
With fractional shares, you don’t need to buy an entire stock.
Instead, you can own a percentage of your desired stock.
Do you own an Apple or Android smartphone (of course, you do)?
You can download Robinhood, and access no investment minimums and fee-free trading.
Heck, you can even trade cryptocurrency, if you want.
Robinhood Fees
Robinhood is classified as a securities brokerage, which means that the firm can buy and sell different stocks on behalf its clients.
Stock brokerages are authorized to fulfill the orders of clients.
Traditionally, securities brokerages charge a fee per order.
However, Robinhood does not charge based on the same model.
Instead, they charge a flat rate for a monthly Gold subscription, which gives you more information about the market. (Read our full review on Robinhood Gold: Is Robinhood Gold Worth It?)
This means that while you feel like you’re downloading an app and signing up for Robinhood…
…you are becoming Robinhood’s client, and they are your new brokerage.
And when you do sign up for Robinhood, you’ll get FREE MONEY ($5-$200) to invest in stocks, plus up to $1,500 in free stock every year when you refer your friends!
How Do I Get up to $1,700 in FREE STOCK with Robinhood?
To open a Robinhood account, all you need is your name, address, and email. To get your free stock you will need to fund your account with at least $10 within a few days of opening so you will also need your bank account routing and account number.
As its current promotion, Robinhood will immediately give you FREE MONEY (between $5 and $200) to invest in a set list of stocks when you open a new account. You will be given your unique referral link. You will receive more free money (again valued at $5 to $200) for each person you refer. The more people you refer, the more you get up to a max of $1,500 a year. To learn more, visit Robinhood's free stock promo page below.
Why do they give away so much free stock? Because they spend their advertising dollars this way instead of buying TV, radio, print, or online ads! They WANT you to refer friends!