Investing with Robinhood lets you to invest in stocks, options, and cryptocurrency with ease.
Robinhood is an investing app and Ttheir goal is to make investing more affordable and accessible to everyone, regardless of how much investment experience you have.
With lots of investment options and the ability to trade in real time, Robinhood may be the perfect way to start building your stock portfolio.
In this article, we’ll explore how to get started with the app and answer some common questions about investing with Robinhood.
Getting Started with Robinhood
To open an account with Robinhood, you will first need to download the app, which is available on both iOS and Android devices, and submit an application.
Watch your email either for confirmation of your account or for Robinhood to prompt you for more information, such as documents to confirm your identity.
Once any documents have been securely submitted (usually this is just a W9), your account will be ready in a few days.
You also have the option to queue up a deposit while filling out your application to ensure your investment experience kicks off smoothly without any delays.
Upon approval of your account, the deposit will transfer from your bank account to your Robinhood account.
Robinhood offers over 5,000 investment choices, so there is sure to be something for everyone.
You can trade mutual funds, ETFs, stocks, cryptocurrency, and even options contracts.
Managing Funds in the Robinhood App
The Robinhood app makes transferring funds between your brokerage account and your bank account simple with just a few easy clicks.
To deposit money into your Robinhood account, simply link it with your bank account.
If you have an account with a major bank such as Chase, Bank of America, Capital One, Wells Fargo, USAA, US Bank, or Navy Federal Credit Union, you can easily select your bank from the list of options in the app and enter your logins.
If your account is with a smaller bank, you will have to verify your account manually via two microdeposits with Robinhood.
Once your account is linked, you are free to transfer money as you wish, but keep in mind transactions may take up to 5 business days.
Withdrawing money from your Robinhood account is equally as easy as depositing.
In the app, click on the Cash tab and click Get Started.
You can have them mail you a free debit card (four color options available) or just use the virtual debit card.
You’ll need to agree to the standard terms and conditions and view the disclosures and then you activate your card by selecting a PIN and setting up location services.
Once that’s completed, just choose the “Transfer” option, then “Transfer to Your Bank.”
Select your bank account from the list, enter the amount you wish to withdraw, and you’re all set!
You can also make withdrawals via Robinhood’s in-network ATMs.
With locations in all 50 states, Robinhood ATMs are very accessible and can be found by choosing the “See Nearby ATMs” button in the Cash tab of the app.
Unfortunately, using out-of-network ATMs will result in a fee, so take advantage of the Find ATMs option available in the app whenever possible.
Making Investments with Robinhood
We know what you’re thinking.
This is all too good to be true, right?
There must be some catch, like crazy fees or strict limitations on your trades. But investing with Robinhood is, at its core, completely free.
Unlike most brokerage firms, the app features no commission fees, trade fees, or monthly fees, so you will not have to pay anything while buying or selling stocks.
There is the option to purchase a Gold subscription for $5 per month, allowing subscribers access to more intensive investment tools and resources, but the subscription is not a necessity.
Investing with Robinhood, you have just as much freedom in your trading experience as you would at any brokerage firm.
You can buy or sell stocks with only a few clicks, and you even have the option to make your purchases in dollar amounts or shares.
The account minimum for Robinhood is $0, so you are not pressured to meet a minimum amount when investing either.
If you want to make the most of your hard-earned money by investing, but you’re not too keen on wrapping up your funds in traditional brokerage fees, Robinhood is a great tool for managing your portfolio.
Its intuitive design, freedom with trades, and wide variety of stocks (both U.S. and global) make it quite convenient and effective for beginners and professionals alike.
Take control of your finances and start making investments in the palm of your hand by downloading the Robinhood app today.
And if you need some help figuring out how to plan for retirement and invest in the best stocks, check out the case study we whipped up for you and then let’s talk!