Robinhood has become one of the most popular brokerages in the U.S., thanks largely to its easy-to-use trading app that can make investing appear very simple. For some investors, Robinhood could be a good choice for this easy-going approach—but there are reasons to be wary of any platform that treats markets almost like a game. More sophisticated investors may find the platform’s features and resources lacking.
Pros
No account minimum, no monthly fee
Very easy to use
Allows cryptocurrency and fractional share trading
Instant access to deposited cash
Cons
App design may encourage active trading, which is not appropriate for most investors
Delayed price quotes
Limited education and research tools
Accepts payment for order flow
No access to mutual funds or bonds