How To Invest With Robinhood + How to Trade on Robinhood

  • May 4, 2024
  • 12 min read

Trading fees in the stock market is one of the most important problems in the capital market. The Robinhood program was a solution to this problem that was introduced about a decade ago by two Stanford University students. Currently, Robin Hood has more than 10 million users and has managed to attract more than 900 million dollars of capital from venture capitalists (VC). Many believe that Robin Hood was the main reason for the important change in the field of stock market transactions in recent years. This program is now a ready and available option for investors. Stay with us to learn more about how to trade and invest in Robin Hood.

What is Robinhood and who is it suitable for?


Robinhood can be considered a new and unique platform in the brokerage industry, which has been able to reach more than 10 million users since its launch in 2013. Undoubtedly, Robinhood has been able to make important changes in the capital market with its fee-free trading of stocks, options and ETFs; In Robinhood, cryptocurrency traders can also trade without paying fees, and that is why it has managed to attract a lot of cryptocurrency traders.

On the other hand, we must say that Robinhood is not a full-service brokerage and does not provide all available services to users, and it is not present in the areas where full-service competitors such as Charles Schwab and Merrill Edge perform well.

Unique features of Robinhood


Traders looking for a new brokerage can use Robinhood's cheap and hassle-free services. Important things to know about Robin Hood are:

- Robinhood was introduced in 2013 and has been influential in big and important changes in this industry.

- Robinhood's approach is to conduct transactions online, which has more than 10 million users.

- Robinhood has managed to attract 912 million dollars of capital so far and is considered a good choice for doing online transactions.

- After Robinhood announced that its volume of transactions is 10 times higher than its major competitors, it became the first headline. However, the method of determining the fee of this program is considered the most economical option.

Who is suitable for using Robinhood:


Using the Robinhood platform is possible for all people who have the necessary knowledge about using these types of platforms. But this platform is the best option for the following people:

- Option traders

- Smartphone users

- Cryptocurrency traders

- Beginners

- Traders looking to make quick trades

Fee-free trading of cryptocurrencies at Robinhood


Robinhood has a simpler user interface than other exchanges. This simplicity complements Robinhood's overall plans to provide a suitable platform for conducting simple and accessible transactions. On the other hand, Robinhood has also provided users with access to fiat currency transactions, which makes it a great option.

The important point here is that Robinhood does not offer no-fee trading of cryptocurrencies to new users who have just created their account, but only offers no-fee trading of a limited number of cryptocurrencies. On the other hand, it is possible to use these deals for users of certain countries, and some restrictions have been created in this field.

Robinhood Performance History


In February 2018, Robinhood launched fee-free trading of 7 cryptocurrencies in New York, which caused the number of users to increase significantly and become a serious threat to traditional and non-traditional brokerages in the industry. Unlike many other platforms, Robinhood doesn't seem interested in making a profit. Robinhood's interest and purpose seem to revolve around democratizing this industry.

As of October 2019, Robinhood has offered fee-free cryptocurrency transactions to 8 more states in the United States, including Kentucky, Louisiana, Delaware, Maryland, Maine, Nebraska, Minnesota, and Vermont, and as a result, this type of transaction is available to users in 46 plus states. Washington was placed. Robinhood has promised to soon make these transactions available to users across the United States.

Tradeable cryptocurrencies in Robinhood


In addition to buying and selling 7 cryptocurrencies without fees, including Bitcoin, Ethereum, Dogecoin, etc., traders can also check price fluctuations and news related to 10 other cryptocurrencies. Compared to other crypto exchanges, the number of cryptocurrencies supported by the Robinhood app is very limited. The coins available in Robinhood are:

- Bitcoin

- Bitcoin SV

- Bitcoin Cash

- Ethereum Classic

- Ethereum

- Litecoin

- Dogecoin

- Compound

- Metic

- Shiba

- Solana

- Bitcoin Gold

- Lisk

- Monroe

- Neo

- Ripple

- Stellar

- Zee Kash


Robinhood's main priority: creating security for users


Due to the significant growth of Robinhood, the security of traders' cryptocurrencies seems to be the main priority of this platform. The broker's hosting system uses superior cryptographic controls to achieve a high level of security. Robinhood also has an offline wallet that supports most cryptocurrencies. In fact, these systems do not have any connection to the Internet, and as a result, they create a double layer of protection and safety against any potential attacks and intrusions.

In addition, Robinhood has stated that it has established related systems to protect the transfer of cryptocurrencies by different individuals. It should be noted that the transfer of cryptocurrencies requires several different levels of verification.

Robinhood's no-fee transactions are truly free


Fee-free and free transactions should be considered the strength of Robinhood. This feature allows you to trade stocks, options, ETFs and cryptocurrencies without having to pay any fees. Over the years, Robinhood has shown that it has a correct understanding of the needs of its customers and knows the needs of the market very well; In fact, Robinhood not only offers free trading but is also one of the best stock trading brokers in the market.

For investors and especially option traders, free trades are a very important point. Although Merrill Edge is the winner in the field of free stock trading and Fidelity Investments and Schwab are the winners in the field of ETFs free trading, the Robinhood program has been more successful than others in the field of options trading. act

How to do options trading in Robinhood


If you want to learn how to trade options in Robinhood, you need to go through these 5 steps:

1- In the Robinhood application, click on the magnifying glass on the top right of the main screen.

2- Search for your favorite stocks that you want to trade options on.

3- Click on the stocks you want.

4- Click on the Trade button on the top right side of the detail page of the stock you want.

5- Click on the Trade Options option.

Trading options in the Robinhood app is as simple as that. The important point here is that although all people can do option trading, remember that this type of trading is not suitable for all people. Offering over 2,000 fee-free ETFs has made Robinhood a top choice for traders.

What is Robinhood Gold?


Robinhood Gold is actually an update to the Robinhood platform available on the website and app. With Robinhood Gold, you can get loans and buy securities.

The cost of using Robinhood Gold


Using Robinhoodd Gold doubles the purchasing power of the account. While most brokerages charge users a daily fee, Robinhood Gold has a monthly subscription fee of $5. This fee includes access to the premium features of this program. However, if you have no money in your account, this fee will be added to your margin.

After you use more than $1000 in margin, you will be charged 5% interest on the amount over $1000 you used. Also, after selling shares, you will have quick and immediate access to your capital. All margin accounts must have a minimum balance of $2,000.

Features of premium accounts

Robinhood has recently added two premium features for user accounts, which are:

- Professional Research: This feature helps the user to access Morningstar's comprehensive reports and research. Reports in this section are regularly updated to cover all important events.

- Market level 2 information: This feature helps users to simultaneously monitor and track offers and requests in the Nasdaq stock market.

Services and features of Robinhood


The Robinhood program has been quite popular in recent years. The important thing here is that this popularity is not only from young users, and traders who are not confused by a large amount of information and can quickly start trading are also fans of Robinhood. This program is not a suitable option for those who are looking for a lot of information and extensive research and analysis. The most important services provided by the Robinhood program are:


Watch lists are presented in a simple and basic way, and there are not many columns about them other than the last price and percentage changes. All users can view a watchlist at the same time

Price alerts

It is possible to activate alerts for all trading situations in each watchlist. However there is no option to personalize alerts and focus on specific stocks.

Stock charts

In Robinhood, stock charts are simple and basic and cannot be changed except for the 6 default time ranges. It is also not possible to get technical analysis from these charts. In simpler language, the general state of the diagrams is simple and preliminary.

Advantages and disadvantages of the Robinhood platform from the eyes of experts


Although the Robinhood program has developed and pushed the boundaries of the financial markets industry, it is still not considered a full-fledged brokerage that provides services. This is what makes Robinhood seem a little primitive compared to the competition. In general, the advantages and disadvantages of Robinhood can be introduced as follows:


- Robinhood's teaching and research tools are not complete and satisfactory.

- The weakness of the support department for customer affairs and supporting and responding to users automatically and using robots

- Inability to open a joint account

- Not having a private key



It should not be forgotten that the main purpose of Robinhood is not to help, educate, guide or prosper traders. But this issue cannot be considered as a factor for the unpopularity of Robinhood because it works very well without these things.

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