Robinhood Promotion Code
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Robinhood is one of the many brokers that offer commission-free trading for securities. The firm does, however,
lack some necessary tools that most other brokers provide and any serious trader will use.
Starting with the positives, Robinhood is free to use and spending money for add-on services is merely an option
Robinhood offers. Anyone can download the app, setup and verify their account, then buy and sell a stock in
less than an hour. This is what makes Robinhood so intriguing to new users. It’s free, sexy, and unbelievably
easy to use.
“Robinhood Instant” is a margin account where the only money borrowed to the customer is the first $1,000 in
any given day’s deposits. Bank transfers take a minimum of three business days to clear. With Robinhood Instant
a new customer can link their bank account, transfer money, and instantly buy $1,000 in stock.
Additionally,
after selling a stock, traders don’t need to wait three trading days to access those funds because Robinhood
will instantly fill the account with the exact amount of which was just sold. In that sense, Robinhood is
borrowing money for a few days, which the FINRA labels margin.
Why does this matter? Well, margin traders are
regulated differently than those trading with their own money. Margin traders with less than $25,000 in their portfolio are legally allowed only three “day trades” in any five-day trading period. If this rule is breached, the FINRA will flag the user as a “pattern day trader” and that trader will be banned from making day trades for ninety days. Robinhood does offer a protection feature that, when activated, will not allow users to make a fourth day trade through the app.
“Robinhood Gold” is identical to Instant in that funds are accessible immediately upon the sale of a stock or
the deposit of funds. What’s different is that Gold acts more like a traditional margin account and is where
Robinhood makes the lion’s share of their money. A Gold membership starts at $6 per month and will borrow
$1,000 to the user. These fees increase as borrowed funds increase.
A key feature of Gold includes access to after-hours trading. Gold customers can trade Pre-Market and
After-Hours which give users access to their shares during earnings announcements or other extended hours
events.
There is no doubt that Robinhood Financial is a well put together app. Everything from Touch ID login to trade
activity and account management is robust and flawless. At any given point, one can look back and see what time
and price they traded shares. A wealth of information is available for every stock including basic stats,
previous earnings, news, analysis predictions, and all buy/sell orders.
Robinhood offers a good set of customizations for notifications as well. Users can stay up to date on any relevant
changes in their owned stocks as well as those on their “Watchlist”. Dividends, bank transfer updates, and order
confirmations can all be sent to the user via push notifications and/or email. When logging in, users immediately see
their daily price movement, Watchlist, and a sleek newsreel relating to securities on their list.
Not everything with this app is dandelions and roses, however. Robinhood Markets is useless when it comes to analyzing stock. All the graphs offered are weak approximations of price movement and there are zero visual settings. It is common to see stock prices one or two tenths of a percent off of the actual price, especially on a high volume stock. This may not seem like much, but for a day trader who is basing limit trades off of this information, it can be the difference between a profit and a loss. It is recommended that Robinhood users consult a high end trading platform such as TD Ameritrade to access these missing features. Doing this enables one to play with technical analysis tools, candlestick graphs, and granular movements of a stock then make a trade for free using Robinhood.
Robinhood is not as sophisticated as many other brokers in that many stocks are not available through Robinhood.
This is a big con for most - one that could cause problems in many cases. Additionally, only stocks, options,
and ETFs are available on Robinhood. No mutual funds, no bonds, and no short-selling with this broker.
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Summary
Robinhood does not take more work to learn than many other platforms. It is fee-free and the broker is good at
contacting you to keep you up to date on all your investments.
If you want easy-to-use broker, Robinhood is one of the decent options out there. With no fees and the ability
to try any investing strategy you want, there are so many ways to use the platform. Which one you pick just
depends on how you like to invest.
Robinhood Promotion Disclaimer
Current Robinhood promotion offer incentive details to open new account could change at any time without notice.
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