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Robinhood (Startups #10)

By July 5, 2021No Comments

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Welcome to Startups. Trading stocks and making investments has never been easier! You can now buy and sell stocks and crypto currency with a touch of a button on your phone.

Robinhood is a free-trading app that lets investors trade stocks, options, exchange-traded funds and cryptocurrency without paying commissions or fees. In its early stages, Robinhood stood out as one of the only brokers offering free trades. But with many big-name online brokers eliminating trading commissions and fees, Robinhood has had to find other ways to stand out. In 2021, Robinhood rolled out a new recurring investments feature.

Robinhood also seems committed to keeping investor costs low. The Clearing by Robinhood service allows the company to operate on its own clearing system, which reduces some of the account fees. One of the few (and the largest) fees Robinhood charges is the $75 outgoing account transfer fee, which is standard among brokers.

Fractional trading pairs perfectly with Robinhood’s newest feature: recurring investments. All you have to do is set a schedule (weekly, biweekly, monthly, etc.) and a dollar amount, and Robinhood will automatically invest the amount you want, when you want. While this is something other brokers offer as well, using it alongside fractional shares is a standout benefit.

Robinhood’s target userbase is folks with smartphones. It all happens within the app in a matter of minutes, with just a few quick questions that gather your personal information, contact details, Social Security number and means of funding your account. The company says approved customers are notified in less than an hour, at which point they can initiate bank transfers.
If a streamlined trading platform or the ability to trade cryptocurrency, along with ease of use, are important to you, then Robinhood is a solid choice for today’s busy consumer.

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