Robinhood Fixed Income Fees, Municipal Bonds, Treasuries (T-Bonds, T-Bills, T-Notes)

2019 Robinhood bonds trading review: pricing, government Treasuries, junk, corporate and municipal bonds. Robinhood app fixed income securities fees.

Robinhood Corporate and Municipal Bonds

If you want to buy municipal and corporate bonds on Robinhood - you are out of luck. The broker only provides investing in stocks, ETFs, options and crypro-currencies. However, another $0-commission broker, Firstrade, does offer inbesting corporate and municipal bonds, Treasuries, Zeros and Strips.

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$0 commissions + up to $200 in transfer fee rebates.

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Firstrade Review

Firstrade rating

Read detailed review of Firstrade »

Robinhood Treasuries: T-Bonds, T-Bills, T-Notes

Robinhood app does not allow investing in U.S. Treasuries - T-Bonds, T-Bills, T-Notes. See Best Treasury brokers.

Robinhood Fixed-Income Securities

As mentioned above, fixed-income products, including CDs, junk bonds and others are not offered on Robinhood app.

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Robinhood Overview

Robinhood is a stock brokerage firm based in California which allows its users to buy and sell US stocks for free. It uses automated technology that drives operational costs such as traders’ salaries and commissions to the minimum. This is how they are able to offer zero fee per trade unlike traditional brokerages who are charging up to $65 per trade.

It has a different approach to generating revenue. Since it doesn’t generate any commission revenue, it uses the uninvested cash the customers have deposited and earns interest on them at Federal Funds rate.

With the use of mobile technology, they haven’t only simplified investing in stocks but they have expanded the sector to millennials and post-millennials. The application was first launched in 2014. The functionalities are limited to buying and selling at market price, making limit orders, stop loss orders and stop limit orders, and although it can’t yet perform more complex financial product purchases, the company is currently valued at $1.3 billion. Having over 2 million users, the total transactions amount to $25 billion to date.

Robin Hood Pre Market Trading

Robinhood, like any other well managed business, is keeping its product up to date, adding new features, and has expansion plans to enter Australia, UK and the EU. They are offering an enhanced service to their customers via the Robinhood Gold Subscription which costs $10 per month with extra features such as extra 2.5 hours of trading, extra line of credit, instant deposits and trade on margin with leverage capability. “Gold users won’t have to wait three days for the ACH transfers to process when they fund their Robinhood balance from their bank account, or when they sell stock and want to buy more stock with the proceeds. Pre- and post-bell trading gives smaller investors an option to trade on after-hours news like earnings reports. Trading from 9am to 9.30am when markets open and from 4pm to 6pm after they close was typically reserved for big institutional investors” says the CEO of Robinhood, Baiju Bhatt.

He adds, “the most important premium feature, though, is additional buying power-which he calls ’basically a credit card for the stock market.’ As long as users have at least $2,000 in their account, they can borrow up to 2X that amount for $10 per month and trade with it. Robinhood is also selling higher-priced subscription with more buying power: $4,000 for $20/month, $6,000 for $30/month, $10,000 for $50/month, and buying power up to $50,000 at a 5% interest rate. There are some restrictions on risky buying behavior, so you can’t dump thousands into a newly IPO’d company, leveraged ETFs, or stocks priced under $3.00 because they’re too volatile.” Going forward, the question is whether traders interested in these advanced options are ready for a mobile-only trading app.

There are no account maintenance fees at Robinhood. Investors will be happy to know that there are also no account inactivity or annual fee at Robinhood.

Robinhood has received the attention of many investors since the beginning, bringing many investors aboard and creating the capital it needs to expand. The last round of investment came from Russian Billionaire Yuri Milner’s investment vehicle DST Global. DST Global invested $110 million in Series C funding stage.

Robin Hood After Hours Trading

Robinhood also has a marketing strategy that’s common for many businesses but what makes this different is this: when you refer a friend and their application is approved, both you and your friend receive a stock chosen at random which is valued between $3 to $150 for free. Furthermore, the interface is very easy to use, minimalistic and fits the design themes of the latest iOS upgrades. The ability to add stocks to the ‘Watchlist’ and view the basic information about the individual stock, review your trade history, portfolio performance and read about the company’s concise history.

Robinhood Bonds Offering reviewed by on . Rating: 1