We all know the story of Robin hood, the selfless archer that stole from the rich and gave to the poor. This is what Robinhood co-founders Baiju Bhatt and Vladimir Tenev tried to accomplish. After the wall street collapse of 2007-2008, millions of Americans lost most, if not all of their money because of the greediness of wall street. Baiju and Vladimimir decided to make sure this doesn't happen again by trying to break the power of wall street.
They decided the best way to do this was to make the app commission and trading fee free. Not everyone has the power to invest tens and hundred of thousands of dollars in the stock market at a time so it would not be appealing for someone that can only afford to invest 10-1000 dollars at a time to have to pay a significant amount of that money to pay for each trade they make. Since diversification is strongly advised in the stock market, that means more of the money goes to fees for each trade made. So basically, Robinhood gave normal citizens like you and me the power to invest whatever little amount we have without worrying about wall streets our outrageous fees. Now with all these benefits, what can be wrong with Robinhood?
The problem with Robinhood is the thing that makes it so appealing, no fees. Since there are no fees, people can trade as they wish, as a result of this, a lot of people blindly trade on stocks without doing their research they feel as if all stocks are equal and they just need profit, this is far from the truth stocks are quite volatile and a lot of them are terrible investment. While the app itself is free, you still have to do your own research in other to be profitable. Robinhood can steal from the rich and give to the poor all he wants, but it is up to the poor to find proper use for the wealth.
Disclaimer: I am not a financial expert. Do your own research when planning on investing your capital. I am not sponsored by any financial agency and this post is my opinion alone.
Join Robinhood and we'll both get a stock like Apple, Ford, or Sprint for free. Make sure you use my link.
https://share.robinhood.com/sulaimr7
My Robinhood link is above, if you do not wish to use it you can still download the app from your app store.