Author Topic: Have you heard of $0 trade fees with Robinhood?  (Read 3531 times)

Credaholic

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Have you heard of $0 trade fees with Robinhood?
« on: December 13, 2014, 12:42:14 AM »
I just learned of this fairly new company. Instead of charging $7.95 per trade like I pay at Fidelity, they're making all trades 100% free. They also seem to have a very user friendly app. For people just starting out with investing and working with smaller amounts, no fee is huge. I've always thought it was stupid that if I wanted to invest $10 it would cost me the same as if I wanted to invest $1M.

They're just getting started with users, so there's a huge wait list, but if you're interested in signing up you can use this referral link to help bump me further up the wait list faster - thanks in advance! https://www.robinhood.com/?ref=xHKX4f   

I'm really curious if this service will be good enough for me to abandon ol' faithful Fidelity. Has anyone heard anything negative or positive about them yet?

tuliptown

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Re: Have you heard of $0 trade fees with Robinhood?
« Reply #1 on: December 13, 2014, 07:01:49 AM »
I think this is the natural progression of the internet.  It democratizes information and lowers barriers like nothing before.  I am on Robinhood (just finishing up with adding funds).  I have been on a quest for the right brokerage this year and have tried Vanguard, Fidelity, Etrade, TD Ameritrade, Motif and now Robinhood.  All have various pros and cons.  I think I will not be using Robinhood very much, but I am not their target audience (older and have more money to invest than a starting out 20-something).  But, I love the idea.  I received three automatic referrals when I joined and sent them to young folks I know that are just starting out.  Helping the wiper snappers as only a Mustachian can :*)

I actually think Merrill Edge (with 30 free trades a month and excellent research available + other bank services) may be my final home, I also really enjoy E-trade and they have been very accommodating.  They have offered free services and lowered my commission as I have become more active.  Cheers.

Credaholic

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Re: Have you heard of $0 trade fees with Robinhood?
« Reply #2 on: December 17, 2014, 05:08:50 PM »
Just got my invite, really excited to try this out. Doesn't seem like you can open tax advantaged accounts here, so unless we have more money to invest over the 401Ks and Roths I probably won't be able to use it much, but I'll fund with some fun money to check it out. I'm definitely also going to share it with my sister who is just getting started on her earning journey.

I didn't know Merrill Edge had 30 free trades per month, tuliptown! Thanks for the tip.

slugline

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Re: Have you heard of $0 trade fees with Robinhood?
« Reply #3 on: December 17, 2014, 10:51:24 PM »
I don't think anyone likes fees, and yet I wonder how this company intends to generate revenue if they don't charge....

TerriM

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Re: Have you heard of $0 trade fees with Robinhood?
« Reply #4 on: December 18, 2014, 12:07:30 AM »
My gut feeling would be not to use them because of my experience with the first online brokerage I signed up with.  They were around a couple of years, had low transaction fees, but no monthly/quarterly/inactivity fees, so all was good.  Until they got bought by Datek who had a policy of  charging quarterly inactivity fees.  I ended up selling everything and trying again at Scottrade who claimed they would not sell out (and have kept to that statement thankfully).  But now I'd be suspicious of anyone offering free trades unless I understood exactly how they were making their money, and that they won't start charging for random stuff later.

Retired To Win

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Re: Have you heard of $0 trade fees with Robinhood?
« Reply #5 on: December 18, 2014, 05:48:24 AM »
...I actually think Merrill Edge (with 30 free trades a month and excellent research available + other bank services) may be my final home...


Merrill Edge is one of my 2 main brokerages now. (Thirty free trades a month works just fine for me!).  Before I found Merrill Edge, I did a lot of stock trading with FolioInvesting.  I paid a $30 a month fee, for which what they call "window trades" were free and unlimited, while I only paid $3 for a standard trade.

But free is definitely best.

Credaholic

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