Robinhood Application Overview

David Kemp

Robinhood app is a great online investment solution. It was developed by a company of the same name. It was founded by Vladimir Tenev and Beihu Bhatt. The company begun to actively grow after its launch in 2013. At the moment, the number of its users exceeds 6 million. Not many exchanges can boast with such big user numbers.

What are the Specifics of Robinhood App?

Robinhood application is free, it is designed to help traders and investors who are interested in investing in cryptographic currency, ETFs, stocks etc. The first version of the program was developed for iOS, now owners of mobile devices with Android can also use it.

When using Robinhood app, the minimum amount that should be on your account is not set. The highlight of the service is the complete absence of commission on transactions. If a user is interested in trading with leverage, he can buy a Robinhood Gold account.

The application, similar to brokerage organizations that work with securities, it falls under the regulation of the American SEC. The organization uses advanced methods of security of user information and protection of funds. The company insures investments in currencies with a maximum payment of 250 thousand dollars, for securities - up to half a million dollars. As a result, users can safely conduct their activities.

Regulations and risks

The company participates in the Financial Industry Regulatory Service (FINRA). Securities Investor Protection Corporation protects finances in the application.

Software works in such a way to create incentives for the acquisition of securities, this increases the risk for investors without experience. In the case of new user registration, Robinhood allocates papers for him from Microsoft, Netflix, Tesla, and other well-known companies. According to professionals, it would be better to offer users less risky operations. For example, using the ETF tool. In the article How to assemble an investment portfolio correctly you can read in detail about assets and strategies for investing.

In fact, the danger from these strategies lies in the fact that inexperienced investors are encouraged to use stocks, rather than direct them to long-term safer investments. Many reviews say Robinhood is not the easiest service for a diversified portfolio. The system is designed for investors who work with relatively few securities. This creates the basis for increased risks.

Disputes

The program announced its intention to launch the Robinhood Checking & Saving service with a 3 percent rate. There is a requirement in the USA - savings accounts must be insured by the Federal Deposit Insurance Corporation. Robinhood issued “mea culpa” on its blog, announced the rebranding and product updates. The company promised that it will work well with regulators in developing a money management program.

Nevertheless, disagreements with banks led to an aggravation of relations with regulators. The Robinhood application itself is quite safe, it is convenient to make transactions with securities with it. Most users are completely satisfied.

Robinhood app has many benefits. It is simple, reliable and insures the contributions of its users.Beginning traders and investors need to use the service with extreme caution, be aware of the risks since the program motivates the use of only a few assetsWhy not check the advantages of the company for yourself and form your own opinion about its product? Moreover, you can start investing with a very small amount of money.