Grab your feel stock from robinhood here: join.robinhood.com
All right guys, so let’s go ahead and go to the link above to grab your free stock at robinhood 🙂 It’s very easy to open a robinhood account and get started investing within one day. If you need any help, then please comment below. So Robinhood is the original commission-free stock broker out there, and they really disrupted the brokerage industry forever by offering commission-free trading with a $0 minimum account balance.So fast-forward a couple of years later, let’s talk about Robinhood and whether it is a good investing app in 2020. So short answer here guys, my opinion is that Robinhood is the best investing app out there for complete beginners looking to get started with investing in the stock market.They offer you a free stock just for signing up.They don’t charge commissions, and they have a very simple and easy to understand app. Now outside commission-free stock trading, Robinhood offers commission-free options trading as well as cryptocurrency trading in select states.We’ll talk a little bit more about this in a little bit. I’ve never personally used the options trading feature, but as far as the crypt currency trading, my only negative thing I have to say about that is they do not allow you to transfer your Bitcoin or cryptocurrency outside the Robinhood app.
Also, you do not have the option to store a hardware wallet, or to send it to somebody else. You would have to cash out of Bitcoin or any other crypto that you owned in order to get that out of your Robinhood account. So I personally do not use or recommend Robinhood for cryptocurrency trading, but for stock and ETF trading, and options trading, it is a superb platform, especially for beginners. Now there’s a couple of cool features in the pipeline as well for Robinhood. Number one, they recently sort of recently added fractional shares to the platform which will allow you to buy shares of stock and ETFs in $1 increments, and that’s really helpful for stocks that trade at a high share price.
Like Amazon for example, trading for thousands of dollars per share. Another great feature they added is the cash management feature which is a high-yield savings account. And this will give you a great option for your uninvested cash where you don’t necessarily want to invest that money in the stock market, but you want to earn some kind of return. And right now they’re quoting that at a %1.80 APY.
However, that will change based on the federal funds rate. Now there are a couple of features Robinhood does not offer and if they’re reading this, I think you guys should add these in the future. Number one, dividend reinvestment would be really helpful for dividend investors.They do not offer any kind of dividend reinvestment right now.They also do not offer retirement accounts and it would be great if they offered this in the future. Third and finally, it would be great if they offered a trading simulator on Robinhood, that way you could practice it without using real money to familiarize yourself with the platform.But that being said I’m going to give you guys a live demo of Robinhood right now, so you’d get an idea of how to use this app and what the features are and how to buy your first stock.So here we are inside the Robinhood app.
As you can see I have $100 of buying power for demonstration purposes.And we’re going to use this to buy a stock here in a minute.And as you saw I also got that free stock just for signing up.Now I will mention this guys, if you do use my link down in the description you will get a free stock, however, I am affiliated with Robinhood, so I may earn a small commission in the process.And I do appreciate you guys for using that link as it gives back to me for putting this video together for you at no additional cost.So I would want to do now is show you what their research tools look like, and we’re going to go ahead and pick a random company.
So let’s go ahead and pick Starbucks’s stock and take a look at this on the Robinhood app.So right off the bat you can tell this is a pretty simple app.You can look at charting over the last day, over the last month, over the last five years if you want to go out to an even wider range.And you can also toggle between a line chart and a candlestick chart.They also show you useful statistics like the open price, 52-week high, 52-week low, market cap, PE ratio, dividends yield and things of that nature.Then there is a news feed on every company out there that will give you relevant news articles related to that company and the headlines they are making.Then we have the analyst ratings which are really helpful to understand what are people doing with this company.43% of analyst recommend buying,57% recommend holding, and 0% recommend selling.And you can also get a little report hereon what people are saying.
Here’s what’s the Bulls are saying and here’s what the Bears are saying.And it’ll tell you what the overall feelings are on this company, why some people are buying it, and why some people are selling it.They also show you an earnings calendar right whereas far as what the company’s earnings have been.Are they beating expectations, meeting them, or falling below them?And then they also show you other stocks people are buying.So people who buy Starbucks often buy Disney, Nike, and Apple, which are all popular stocks among young people.And then at the very bottom we get a corporate profile about Starbucks.We can see their CEO, headquarters, when they were founded, number of employees and other information right there.So it’s pretty basic in terms of the research you can do.
But again, Robinhood is designed to be the simplest investing app out there.So I’m not going to say too much about that because they really intentionally make this app very simple.So now let’s go ahead and buy a share of Starbucks.I like their coffee and it’s a good stock to own in my opinion.So let’s buy a share.I’ll show you guys how simple it is.At the bottom here we’re going to click buy.And I have 100 bucks.We can only buy one share of Starbucks at an estimated cost of $81.60.
So let’s click review, and then we’ll go ahead and buy our stock just by swiping up.And just like that guys,I have officially bought my first stock with Robinhood, one share of Starbucks and it’s literally that easy.And it’s just as easy to sell.Now they do offer a couple of different market order types in case you want something different, like a limit order for example.But the easiest one is a market order, you buy it at the market price or sell it at the market price, and your order will be executed immediately.So next let’s talk about Robinhood Gold which is their premium service that does have a monthly subscription cost that will give you access to a couple of different features.First, the initial $5 per month plans going to give you access to $1,000 of margin, which can be used to buy additional stocks.
Now I personally don’t recommend buying on margins it is highly risky, but you may decide otherwise.And if you want to invest with borrowed money it’s very easy to do so with Robinhood.Another great feature you get is larger instant deposits.So when you add money to your Robinhood account a larger amount is available instantaneously than if you did not have Robinhood Gold.
You also get professional stock market research reports from Morningstar as a Robinhood Gold member.And you get level two quotation through NASDAQ which is going to be a faster updated quotation which is more important if you’re looking at micro price moves with stocks and ETFs out there.But if you don’t want to pay for Robinhood Gold you certainly don’t have to and the app itself is 100% free.
So anyways guys that is my review in a nutshell.It is, in my opinion, the best investing app out there for complete beginners.However, if you are a intermediate to advanced trader, or a dividend investor,I wouldn’t necessarily recommend this app for you.Down in the description I will include some review videos for apps that are a better fit for dividend investors, active traders, etcetera.So check that out down in the description.If you do want to check it out and get yourself a free stock that link is down in the description below.And I certainly do appreciate those of you who decide to use my affiliate link as it does give back to me for putting this video together.But thanks so much for watching guys.I hope you enjoyed it and I will see you in the next video.