Robin Hood Review
Yesterday I posted about my Recent Buys that I had been buying using some new strategy. The new strategy that I am employing is called dollar cost averaging. Using my normal broker, Tradeking, I wouldn’t fathom the idea of using this strategy but I would with some of my other accounts. As you all know I have been using Loyal3 since February when I wrote my Loyal3 Review. Lately though I learned that Robin Hood was out of beta so I decided to go and sign up for an account and check out this new broker which also offered free trades.
It took no time at all to sign up for a new account and to get my bank account linked up with it. Once I loaded the app on my phone I noticed something right away that I didn’t really like. I like that it shows me a chart for a certain period…. but once you click on say 1M (month) it doesn’t show you where it breaks down into days and months. So it just shows the chart on a white background…. if it shows a big drop in the value… you don’t really know when exactly that happened. In general, I really like the look and feel of the app. I really like on the Accounts page in the app how it breaks down and shows me how much of my portfolio is in stocks and how much is in cash.
It does have some nice benefits that the Loyal3 app doesn’t offer. For instance, whenever you place an order with Loyal3 they do a batch order at 2:00pm and you get the stock at whatever price that it was selling for at that time. The Robin Hood app is a lot better because you have more versatility with how you place orders. Much like a more traditional broker you have the option to do market orders or limit orders etc. By having the option to place different types of orders that allows you more control over the price that you pay… as opposed to having a batch order placed and you just get whatever price that you get.
Currently Robin Hood doesn’t offer any kind of Dividend Reinvestment Plan for dividend paying stocks. That is something that I hope they will change in the future, although with no trade fees it is not that big of deal to just add the dividend amount into your next stock purchase.
In the future, if I decide to transfer my stocks from Robin Hood into another brokerage account that will incur a $75 fee which seems kind of steep because I think Loyal3 only charges $25. I guess this is one way that the company gets paid on the back end. Check out there Fee Schedule Here.
During the accumulation stage this platform may not be a bad choice. So far I have only been using the app to build a position in KR. I intend to continue to use the app when I deem it appropriate. I have no intentions of buying a large position with Robin Hood. I would be more inclined to use it to dollar cost average my way into positions. Maybe at some point later on I would consolidate all of the positions into one account, I’m not sure. I guess I will cross that bridge when I get there.
I think the app is especially great for anyone who is just starting out and cannot afford to invest a lot of money at one time. I think it will also work well for dollar cost averaging. I’m going to continue to use it while I try this strategy and then just reevaluate the whole idea in a few months. If you want to download the app then please visit the Official Robin Hood Website.
I am very interested to hear if any of you guys have ever used Robin Hood and to hear what you thought about it. Please leave your comments below!
I haven’t used robinhood, so I can’t tell you what I think about it.
One of the most important features I look for in an online brokerage is what kind of data it provides at tax time. I’d like to be able to import transactions into TurboTax. If I have to manually enter trades from paper documents, its a no-go for me.
Is this a concern for you? Does robinhood support export to TurboTax?
FerdiS recently posted…Recent Sell: Digital Realty Trust, Inc
I am still relatively new to Robin Hood and hadn’t even thought about this. I know last year at tax time it was a breeze because I was able to import. I will have to check into this and get back to you on it. I appreciate you for bringing this to my attention and for stopping by.
Ive used both services. I still have open accounts with Loyal3 and Robinhood but I don’t have any money in them. Loyal3 just doesn’t have enough stocks to interest me. Robinhood has most stocks, but no DRIP. At least not when I used it. If an investor is looking for no fees then these brokers are it. However, Interactive Brokers only charges $1 per transaction. I’d rather pay the dollar and have the services IB provides.
Investment Hunting recently posted…Selling Options And Earning Income – August 2016 Update
yeah I started using Loyal3 when Robin Hood was in beta. So I have holdings in both accounts currently. I recently heard about Interactive Broker and their $1 trades but I haven’t had a chance to look into it yet but it does sound very tempting. Thanks for stopping by Nathan. I hope all has been going well for you.
Nice review MD. I have to say that I don’t think either of these options are available in Australia yet (though Acorns is). So we will just have to appreciate your review from afar for now 🙂
Dividends Down Under recently posted…Saving for the future: August 2016
Acorns was one that I had looked into when it first came out. The theory is nice but it just wasn’t for me regardless of how small the fee is!