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Mutual Funds on Robinhood (Index, Growth & Target Funds, Fees)

2022: does Robinhood offer mutual funds from American Funds or Charles Schwab? Robinhood mutual funds review: top no load, index funds, U.S. stocks and target retirement funds selection, fees, cost of trading.

Robinhood Mutual Funds

Right now, Robinhood does NOT offer investing in mutual funds. Only about 5,000 stocks and ETFs are available to Robinhood customers. Options and cryptocurrencies trading are also provided. For funds investing you can use another $0-commission broker - Firstrade - that not only offers mutual funds but also IRAs, DRIPs, bonds and excellent website trading.

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Other Securities Robinhood Does Not Provide

Robinhood does NOT support investing in Foreign domiciled securities, OTC equities, Preferred Stocks, Tracking Stocks, Warrants, Mutual Funds, Bonds and fixed income trading, and Foreign Exchange.

Robinhood Complaints

Investors who have tried Robinhood's ultra-low-cost investing service have enjoyed the company's $0 commissions. But they have developed many objections to some of the broker's rules. Let's take a look at these policies, and see which brokerage firms offer better services.

Money Transfers

Some Robinhood clients have criticized the broker's ACH system for taking too long to process requests. The Robinhood help section states that it “takes about 4-5 trading days” for an ACH to process.

By comparison, Fidelity customers usually see outgoing transfers (from Fidelity) take no more than two business days; while incoming transfers (to a Fidelity account) take up to four business days to be available for security purchases. This schedule does seem a little quicker than what Robinhood promises.

Customer Service

Many Robinhood traders have complained about the broker-dealer's lackluster customer support. Representatives are available only during regular market hours. The company's phone number isn't toll free, which is rather odd. Robinhood has a Twitter account, but it's not very active. Because the brokerage firm doesn't have any brick-and-mortar locations, these are the primary avenues of contacting the company. It does have a fax number and a service e-mail address. It took two days for Robinhood to return our test e-mail.

Needless to say, many other low-cost brokers provide better customer service. For example, Schwab has associates on the phone (toll-free) 24/7. There are agents who speak Mandarin, Cantonese, Spanish, Portuguese, and Vietnamese. Plus the broker has on-line chat, which Robinhood lacks. Schwab also operates a nationwide network of branch locations.

Robin Hood Mutual Funds

Application Approval Process

Some Robinhood customers have complained that it takes the broker several days to approve an account application. On Robinhood's website, the broker states that the approval process could take anywhere from less than an hour to up to five market days. Like all other broker-dealers, Robinhood must carry out government-required examinations of applications to ensure conformity with the USA Patriot Act.

Other brokerage houses must go through similar procedures to ensure compliance with government protocols, so there's no guarantee that other places won't have the same amount of bureaucracy.

Lack of Trading Platform

A major grievance that Robinhood customers frequently have against the broker is the lack of a trading platform. There is also no browser-based platform, either. Many broker-dealers today have both. WeBull, for example, has a desktop trading system and a simpler platform that remains within a browsing window. The broker does not charge any fees for these programs and charges $0 for stock, options, and ETF trades. In terms of value — software versus trading costs — seems to offer a better deal.

So where do Robinhood traders submit orders? On the broker's mobile app, which is available on Apple and Android devices. But the charting is very simple, and stock research is very elementary. Other brokers offer much more advanced investment tools for mobile traders. TD Ameritrade, for instance, offers a very advanced mobile app with a charting program that integrates 400 technical studies. Also available on the app is live streaming of business news, something that the Robinhood trading platform doesn't have.

Education and Research

Not only does Robinhood lack trading technology, it also fails to provide security education and research tools. The broker's customers are forced to go elsewhere if they need to research securities or study any important financial topics. The broker, which emphasizes trading in stocks, does not even have a stock screener.

E*Trade customers do have access to a stock screener, and much more. The broker's website has advanced search tools for bonds, ETFs, options, and mutual funds. There are videos and articles on a wide range of investment topics, from retirement planning to tax-efficient trading.

Robinhood funds

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Other Robinhood Complaints

Incoming ACAT transfers are not possible at Robinhood for some strange reason. Most brokers do provide this service, and it's usually free.

Robinhood is one of the few brokerage firms not to offer trading in mutual funds, or bonds. The vast majority of brokers do provide trading in these products, although Webull does not offer fixed-income securities. Robinhood also does not provide trading in futures or forex. TD Ameritrade clients can invest in both.

Advanced order types are not available at Robinhood, but they are at other firms, including Interactive Brokers and TradeStation.

Robinhood Mutual Funds Summary

Robinhood has successfully reduced its trading fee as low as it can possibly go. But it hasn't accomplished this feat without sacrificing in other important areas. The main one - there are no mutual funds on Robinhood. Traders who need these services will have to go to better brokers.

About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for, Chad can usually be found managing his portfolio or building a new home computer.