Robinhood Review – Are They Safe or a Scam?
Check Our Ratings and Reviews for 2021
If you are looking for a broker that not only offers you a strong selection of cryptocurrencies to trade with but also has a platform that is exceptionally easy to use, then look no further than Robinhood.
Our Robinhood review found that users could access more than just cryptocurrencies. They could trade with options, funds, gold and more. Robinhood doesn’t just give you the one avenue for trade but rather gives you ample options to diversify your trading portfolio with. Keep reading our Robinhood review to see what else we found out about this special brokerage platform.
Unfortunately, we couldn’t seem to find anything in the way of a promotional offering or welcome bonus. To be honest, we really didn’t find this to be the end of the world as the platform itself is really well put together and the sign-up process was a breeze. All you need to do to get cracking with your Robinhood account is follow some simple steps that will require a username, password, email address, and some other minor personal details.
Once you have completed this part of the sign-up process, you will need to verify your identification. This can be done by sending through a copy of one of your identification documents like your passport, standard I.D document, or your driver’s license. From there, you’ll need to verify your proof of residence with a bank statement or utility bill. Once that’s all done, you are good to go. We found the whole process to be fairly painless as we were up and running with our account within the day.
We took our time with our Robinhood review to browse the site, check out the trading platforms in more detail and just generally tried to find a couple of different elements. In doing so, our Robinhood review came to the conclusion that the platform is definitely newbie trader friendly. Everything is laid out in a concise manner and on white background, so it’s appealing to use.
The actual Robinhood crypto trading features are great as you can get your trades executed swiftly with their exceptionally well-designed trading platform. You can do so with the mobile or web-based version of the trading platform. We found that both run smoothly without any notable delays when opening or closing your positions.
If you are looking to trade cryptocurrencies, you won’t be needing any additional platforms to supplement your Robinhood experience as there are ample coins to choose from. We’ll get to the specifics of their cryptocurrency offering later on in our review though.
Our Robinhood review took the time to check out the different account options for new and existing users. Our Robinhood review found that you could only access one account when you first sign up, which is the instant account. The instant account can be changed, but you may not want to as it does have its benefits. Our Robinhood review also found that the instant account option allows you to make an instant deposit up to $1,000. Plus, you’ll have much quicker access to your process as it is a limited margin account.
Now, once you create your account you won’t have to stick with the instant account as you can switch to a Cash account of the Robinhood Gold account. To be honest, the Cash account seemed to be more trouble than it’s worth as you won’t be able to reinvest your proceeds very easily. This is because you’ll need to wait three-days after a sale before you can actually access your proceeds.
The Robinhood Gold account will require that you pay a $5 monthly fee. The fee is because you’ll have access to a true margin account which gives you more buying power. You also won’t have any interest charges on your first $1,000 of margin debt. Besides that, you’’ have access to additional research tools and recommendations from Morningstar. Robinhood reviews by other users seem to sing the praises of the account options on the site as well.
Our Robinhood review could not find any other trading platforms on the site other than Robinhood’s very own trading platform. So, before we weep for the imposition of any of the industry’s favourite MetaTrader options, we decided to look a little closer at what was available first.
Our first run through of the Robinhood web trading platform was a positive one. The web trading platform was a breeze to use, as you could simply search for what you were after in the search bar. The search options make it all too easy to find the stocks or assets you are after. You can simply click on the “collections” tab to stick to a certain sector that you want to trade in. So, if you only want to trade in tech companies, simply click on the tag and you will be given a list of tons of the best tech companies. You can even customize the platform to suit your own preferences, although we personally enjoyed the default settings.
Our Robinhood review found that the mobile trading platform can be downloaded from both the IOS and Android app stores respectively. To be quite honest, the mobile version of the trading platform offers you a pretty much identical experience to the web trading platform. The only omission we really found was that you couldn’t use the stock screener on the mobile trading platform.
While we were disappointed at first due to the lack of popular trading platforms in the site, we were quickly removed from our negative space after checking out the exceptional web and mobile trading platforms that Robinhood provides.
If there is one area that Robinhood really shines, it is with its lack of deposit and withdrawal fees. One thing that did leave us a little disappointed was the fact that you could only make deposits and withdrawals using a bank transfer. So, if you were hoping to use trendy e-wallets or credit cards for your Robinhood crypto trading endeavours then you may need to look elsewhere.
Despite the lack of real deposit options, our Robinhood review found that the broker charges zero deposit and withdrawal fees. This is a fantastic feature especially when used in conjunction with the instant deposit access on the Robinhood Instant account and the Robinhood Gold account. The only variable here, is that you will only be able to instantly deposit up to $1,000 with the Instant account where the Gold account will allow you to instantly deposit up to $50,000. Any amount that you deposit that is higher than the instant deposit cap will be credited to your account within 4-5 days.
For example, if you deposit $1,200, the first $1,000 will be transferred instantly while the total $200 will take up to 5 business days to clear in your account.
When it comes to making a withdrawal, you can expect to wait up to 3 business days for your transaction to clear. Apart from that, there really isn’t much more to fret over with the deposit and withdrawals over at Robinhood. We must say, we would really like to see them add a couple more payment options in the future though.
If we are being completely honest, we would really like to see Robinhood put a little more effort into their customer support. Up until this point our Robinhood review has been nothing but pleased with what we have found on the platform, but more effort is certainly needed for the customer support.
Our Robinhood experience and rating report found that the customer service was limited to only an email address. There was no live chat feature to speak of or even a telephone number that you could call. With that being said, we decided to email the customer support team to see what the response time was, and we weren’t disappointed. Our email was responded to within 2-hours which is very efficient in comparison to other broker’s email responses. You can contact the support team via email 24/5 as they are closed on weekends.
We were addressed with respect and the customer support remember that responded to our email was friendly and professional. So, while there may not be a live chat feature or phone number, a case could be made that the email support on the broker’s site does enough to offset this omission. One area where Robinhood really shone in terms of customer support was with their detailed FAQs section. There is every chance that after spending a minute or two in this section that you won’t even need to speak to one of the support members at Robinhood.
One thing you should always avoid doing, is using a broker without knowing that the broker is regulated by an official financial authority. We are happy to let you know that our Robinhood review found the broker has received their license from the Financial Conduct Authority (FCA) which is based in the UK.
Robinhood is also regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulation Authority (FINRA). So, you can rest assured that the broker has jumped through all the necessary hoops to make sure that it operates above board.
Robinhood makes security a top priority on their site as all user data is encrypted with the latest SSL software. This means it won’t fall into the hands of any third-party entities. What really helps Robinhood users sleep at night though is the fact that all user capital is kept in a separate trust account away from that of Robinhood. So, in the unlikely event that Robinhood becomes insolvent, your capital wil. Be returned to you and never be used to cover any of Robinhood’s own debts.
Robinhood runs a platform that not only provides users with a number of different trading instruments to take advantage of but a platform that is transparent and wholly trustworthy. The broker has been around since 2013 and has grown from strength to strength in the years since then.
While we focus on their cryptocurrency offering in detail in the upcoming section, we had to mention the fact that they don’t stop there. You can get stuck into commission-free options trading, trade gold on a 2.5% margin or invest in thousands of different stocks from as little as $1 thanks to the fractional shares feature on the site. There are plenty of trading options to supplement your cryptocurrency trading with. You can have a genuinely diverse portfolio when using the Robin Hood trading platform.
Robinhood also offers a Cash Management service which will deposit your uninvested cash into banks that are FDIC-insured. Here, your money will accrue as much as 0.30% per annum.
One thing our Robinhood review has done is answer the question “is Robinhood reliable?” in full. Traders will always need to know that a platform is safe to use before they proceed any further and we feel as though we have allayed any concerns you may have initially had with our review.
We thoroughly enjoyed our time conducting this Robinhood review. The platform was a dream to navigate, and setting up an account took no longer than an hour to do. The site itself provides a great platform to conduct your crypto trades with. What was far and away the best feature of the site was the fact that there are zero commission fees on any of your crypto trades.
If you want to get started with a broker that offers a great selection of cryptocurrencies but that also gives you access to a number of other trading instruments, then Robinhood may well be the broker you have been looking for.