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Robinhood, is a definitely a smart app, that was created to cater for Millennials who wouldn’t bother investing in the stock market otherwise.
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Robinhood App is the world first mobile app that allow you users to trade stocks with no trade commission (100% free) has been growing its user base exponentially sine it launched in 2013, less than 5 years ago, Robinhood app had valuation as of last year of $1.3 billion dollar.
Now, it is important to share that stock trading fees are not cheap, online trading companies charge between $4.95 to $7.95 per trade. So being able to trade with no fees, that is really a big deal. You can buy penny stocks without paying money to the middle guy. A cost of a penny stock would be an actual penny.
Robinhood, is a definitely a smart app, that was created to cater for Millennials who wouldn’t bother investing in the stock market otherwise. I installed the app on my phone being skeptical. I haven’t invested in the stock market directly, I believe stock markets are there to crash. Now, i downloaded the app, it is free, it is legit, and has no feel, but most importantly, it is user friendly and easy to use. So, I figured I may as well give it a go. I linked the app to my bank account in couple of clicks , transferred $25 from my bank and I was ready to go. Started with a $5 stock that was active, I bought and sold. This like wow, by the end of the day I made $1. Now, I am not expert, I was doing smart guessing based on historical data (value of the stock over time ). Now, because the app is so friendly, and I got so excited, one thing lead to the other by the end of the week, I was trading $300 on various stocks. I traded so hard I have days where I hit the maximum trading power. Now, as I did that I got to learn the down side of the app.
Now, as I look deeper on this app, I can tell you for a fact, the free trading app come at a cost. The cost come in the shape of less features compare to other trading platform and here is what it cost you to use the free trading app :
Blind Trading: This is the biggest down side of the app. Trading platforms share with you the volume of trading live time as well as what are the coming buy and sell order asking price. As trading grows on you, these insight help you do better prediction of where the stock price is heading (up or down). Robinhood, doesn’t offer that feature. • You can’t Name Your price:You heard that right, you can name your price on a hotel room on Priceline but not on the app, this is another down side of the app, you will have to place the order on the price as you see it. This is a dangerous game, because by the time you done with your few swipes to buy or sell, the price may went sharply app or down, specially with swinging stocks. Now, the app make it worse because when u click on review, it can show you a price to buy, by the time it is done, you end up with a different price. • The App swings is always against users: I am pretty sure the app is manipulative to its own leverage, so lets say the price of a stock is $4.99 of time you wanna buy, it goes app to 5.04 and down to $4.94 in few seconds, if you try to buy it for $4.99, you will 99% of the time end up with something above $5. The app play against user in selling (you get the lower end). Now, if you buying stock that you will keep that is not bad, but if you trying to sell/buy same day, it will not play in your favor.
