Robinhood Review (2025)

Robinhood is prominent player in the investment space since its founding in 2013. The company is a commission-free trading platform, which has garnered over 24 million funded accounts and manages approximately $139.7 billion in assets under custody.

Robinhood’s mission is straightforward: to make investing accessible to everyone, not just the wealthy. Their vision came from recognizing that Wall Street professionals could trade without fees while everyday people paid for every transaction – a disparity they aimed to eliminate.

How we Rate Robinhood

Affordability – Commission-free trading, no account minimums, and zero fees for stocks, ETFs, and options make Robinhood extremely cost-effective.

IRA Match – Unique 1-3% IRA match is industry-leading, but five-year holding requirement and Gold subscription for higher rates limit perfection.

APY – Gold’s 4% rate is outstanding, but standard members get just 0.01%, creating a significant disparity between membership tiers.

Transparency – Improved disclosures about revenue sources, but past trading restrictions and regulatory issues indicate more progress needed.

Customer Support – 24/7 chat and callback options are improvements, but lacks direct phone lines and response times remain inconsistent.

Robinhood overview

Founded 12 years ago, Robinhood quickly became popular among younger, tech-savvy investors with its mobile-first approach and intuitive interface. It already offers a range of products including stocks, ETFs, options, and cryptocurrencies, with plans to introduce futures trading in the coming months.

With no minimum deposit requirement and commission-free trading, Robinhood provides an accessible entry point for new investors while offering enough advanced features to keep experienced traders engaged. Take a look in the general information of Robinhood:

Robinhood delivers a simplified investment experience that appeals to both beginners and active traders. The company has been expanding its offerings with features like:

• 24-Hour Market: Trade select stocks and ETFs 24 hours a day, 5 days a week
• Robinhood Legend: A new web-based desktop platform with customizable layouts and advanced charting
• Robinhood Gold: Premium subscription ($5/month) offering higher APY, research tools, and enhanced IRA benefits

Pros and cons of Robinhood

Robinhood seems a good fit for your profile? Let’s take a look into the bad and the good of Robinhood.

As you can see, Robinhood isn’t perfect (nothing is), but it offers numerous benefits while having just a few drawbacks. Sign up for free today and experience it for yourself.

Is Robinhood right for you?

Robinhood is an excellent fit for:

• Beginning investors who want a simple, approachable platform to learn the basics
• Mobile-first traders who prefer trading on their phones with a streamlined interface
• Young investors building retirement savings who can benefit from the IRA match
• Casual investors who make occasional trades and don’t need complex research tools
• Cryptocurrency enthusiasts looking for an easy way to add crypto to their portfolio

However, Robinhood might not be ideal for:

• Advanced traders requiring sophisticated analysis tools and order types
• Long-term investors seeking mutual funds and bonds
• High-net-worth individuals who need estate planning options and premium advisory services

Even if you don’t think Robinhood is a perfect match right now, it might be just what you need to begin your journey into the markets. You can open an account with no minimum deposit and start trading stocks, ETFs, and even cryptocurrencies commission-free.

Is Robinhood Safe?

Okay, but no benefit can worth when your money isn’t safe, right? If you’re wondering “Is Robinhood Safe?”, it’s your time to shine. Let’s see if Robinhood truly deserves your trust (and to hold your money).

Regulatory Protection and Insurance

As a member of the Securities Investor Protection Corporation, Robinhood provides protection of up to $500,000 for securities and up to $250,000 for cash in your account.

Robinhood is also regulated by the Securities and Exchange Commission (SEC) and registered with the Financial Industry Regulatory Authority (FINRA). These aren’t just fancy acronyms – they’re guardians that keep brokerages in line.

But there’s more – Robinhood offers additional insurance with a massive $1 billion aggregate limit, with per-customer coverage up to $50 million for securities and $1.9 million for cash. This doesn’t protect you from market losses (nothing can), but it means if Robinhood itself fails, your assets are covered.

Strong Technical Security Measures

Robinhood takes your account security seriously, offering:

• Two-factor authentication (2FA)
• Biometric login options (fingerprint/Face ID)
• Device verification
• Strong password requirements
• Encryption of sensitive data

98% of crypto assets are stored in cold storage, completely disconnected from the internet. This is a huge security advantage that protects against hacking attempts.

All sensitive information is encrypted, and Robinhood employs bank-level security measures including secure socket layering (SSL). Their security team routinely reviews code and infrastructure, and they engage third-party security experts to test their systems.

Robinhood Customer Service

If you think the previous measures don’t do the job, you can count on Robinhood customer service. Check out the main information:

Remember, while Robinhood works hard to keep your account secure, you play a role too. Always enable two-factor authentication, use a strong unique password, and be vigilant about monitoring your account for any unusual activity.

Available Services at Robinhood

Robinhood has grown from a simple stock trading app into a robust financial platform offering a variety of services. Let’s explore what’s available to help you decide if it meets your needs.

Commission-Free Stock and ETF Trading

The core of Robinhood’s offering is still its commission-free stock and ETF trading. You can trade over 5,000 stocks and ETFs without paying a penny in commissions.

Key features include:

• $0 commission trades
• Fractional shares from as little as $1
• Extended trading hours (7am to 9pm ET)
• 24-hour market for over 900 stocks and ETFs
• Real-time market data and quotes

Robinhood recently launched “Legend,” its web-based desktop trading platform that brings more advanced charting capabilities, customizable layouts, and real-time data updating at sub-second intervals.

What’s especially appealing for beginners is the ability to buy fractional shares. This means you can own a piece of expensive stocks like Amazon or Google with just a few dollars, making it possible to build a diversified portfolio even with a small budget.

Options Trading

Options trading on Robinhood is completely commission-free with no per-contract fees – something that sets them apart from many competitors.

Futhermore, Robinhood offers a Strategy Builder to help you plan, build, and execute strategies like vertical spreads, calendar spreads, strangles, and straddles.

For beginners, the platform provides educational content explaining concepts like time decay, volatility, and the Greeks in clear, relatable terms. Their interactive P/L (profit/loss) charts give users a visual understanding of how options work.

Cryptocurrency Trading

Robinhood Crypto allows you to buy, sell, and hold popular cryptocurrencies, like Bitcoin, Ethereum, Dogecoin, and 19 others. The platform claims to offer the lowest costs to trade crypto on average in the US.

Unlike some platforms, Robinhood gives you full control over your crypto:

• No fees on withdrawal or deposit
• Send and receive crypto to/from external wallets
• Security through cold storage for the vast majority of assets
• Crime insurance against theft and cybersecurity breaches

For those interested in the decentralized web, Robinhood offers a separate non-custodial wallet app that lets you store and manage your crypto on various networks, including Ethereum, Bitcoin, and Solana.

If you’re curious about crypto investments, Robinhood makes it easy to get started with as little as $1 and no commission fees.

Robinhood IRA match

Robinhood’s retirement accounts offer something truly unique in the brokerage world: matching contributions. You’ll receive a 1% match on all IRA contributions (3% if you’re a Gold member), which can add up significantly over time.

For example, if you max out your IRA contribution of $7,000 in 2025, you’d receive an extra $70 (or $210 with Gold). This is essentially free money toward your retirement!

But there is a catch. You need to keep your contributions in the account for at least five years to avoid losing the match, and Gold members must maintain their subscription for at least one year.

Cash Management and Cards

Robinhood Card lets you earn stock and crypto rewards with every purchase. Its innovative approach combines spending with investing:

• Round up purchases to the nearest dollar and invest the difference
• Earn weekly bonuses as a percentage of your round-ups
• Access to 75,000+ fee-free ATMs
• No monthly fees or minimum balance requirements
• Early direct deposit for paychecks

Gold members can also apply for the Robinhood Gold Card, which offers 3% cashback on all purchases and 5% on travel booked through the Robinhood travel portal. With no annual or foreign transaction fees, it’s a competitive offering in the credit card space.

For those looking to save money while investing, Robinhood’s diverse offerings and low-cost structure make it an attractive option. Whether you’re just starting out or looking to expand your investment strategy, Robinhood provides the tools and services to help you grow your financial portfolio.

Robinhood Gold Premium Service

For $5 per month, Robinhood Gold offers enhanced features for more serious investors:

• 4% APY on uninvested cash (compared to 0.01% for standard accounts)
• Professional research from Morningstar covering about 1,700 stocks
• Level II market data from Nasdaq for real-time insights
• Larger instant deposits up to $50,000
• No interest on the first $1,000 of margin
• 3% IRA match instead of 1%
• Access to the Robinhood Gold Card

For investors who maintain even modest cash balances or contribute to IRAs, the Gold subscription can quickly pay for itself. With just $1,500 in uninvested cash, the higher interest rate alone would cover the monthly fee.

Is Robinhood Gold Worth It

Robinhood’s premium subscription, Robinhood Gold, costs $5 per month (or $50 annually) and offers several valuable perks that might make it worth considering:

• 4% APY on uninvested cash – This rate is competitive with high-yield savings accounts and significantly higher than the 0.01% standard rate.
• Enhanced IRA matching – Gold members receive a 3% match on IRA contributions versus 1% for standard members, potentially adding hundreds of dollars to your retirement savings annually.
• Professional research tools – Access to Morningstar research reports on approximately 1,700 stocks and Level II market data from Nasdaq.
• Lower margin rates – The first $1,000 of margin is interest-free, with competitive rates on additional borrowing.
• Larger instant deposits – Access up to $50,000 in instant deposits (depending on your portfolio value) versus just $1,000 for standard members.
• Exclusive Gold Card access – Apply for the Robinhood Card that offers 3% cashback on all purchases and 5% on travel booked through Robinhood.

For investors who maintain even modest cash balances or contribute to an IRA, Gold can quickly pay for itself. With just $1,250 in uninvested cash, the 4% interest rate would cover the annual subscription cost.

Steps To Create Your Robinhood Account

Ready to start investing with Robinhood? Creating your account is quick and painless. We’ll help you through each step of creating an account and starting investing, so you can get started on your investment journey with confidence.

How To Open An Account

Steps

The Bottom Line

Robinhood is a comprehensive investment platform that can satisfy the needs of most individual investors. Its commission-free model, intuitive interface, and expanding feature set make it particularly appealing to newer investors looking to get started without high costs or complexity.

While it still lacks some of the sophisticated tools and investment options that advanced traders might require, recent improvements like the Legend desktop platform, Robinhood IRA match, and superior cash management features show that Robinhood is committed to growing with its users.

If you’re looking for a straightforward way to start investing with minimal barriers, Robinhood delivers an excellent experience.