Is Robinhood Safe?
- June 17, 2020
- Bradley Taylor
Have you heard of Robinhood? Its the latest trend in trading stocks and purchasing investments. They have a great website and a fantastic mobile app that many people I personally know use. They have grown very popular very fast and this is mos likely due to the fact that Robinhood offers a random free stock when you signup and link your bank info. Not only do you get a free stock, the person referring you gets one as well.
About the Random Stock Reward
Most every stock that is awarded is in the $5 or under price range. But they also mix in some pricier stocks too. The site claims that 1 in 250 people will receive a share of a more valuable stock like Facebook, Microsoft or Apple. And they are telling the truth. How do I know? I received a share of Microsoft (then valued at $183) when I signed up and linked my bank account.
But are They Safe?
I did my due diligence before I signed up and everything I have seen says that this company is for real. After I received my free Microsoft stock I did even more research because as the old saying goes “If something looks too good to be true, it usually is.”
The following snippet is from InvestMenu.com: “..any money you transfer to your Robinhood account is protected by the Securities Investor Protection Corporation (SIPC). The SIPC protects up to $500,000 for securities and up to $250,000 for cash claims. Although, cryptocurrency investments are not protected by the SIPC.”
Not Just Stock
The company also allows you to buy cryptocurrency investments. You can add Ether, Bitcoin, Ripple or any crytpocurrency you like to your account.
You can also purchase fractional shares of stock. The company is able to sell fractions of shares that may be too expensive to purchase as a whole. This is helpful when trying to buy a stock like Tesla, which is around $1000 per share at the time of publication.
Free trades. Yep. You read it right. Trades through Robinhood are commission free. The company makes its money on the backside of trades because of the sheer volume they handle. From investopedia.com: “they make money from “rebates from market makers and trading venues.”
Ready to Join?
Good! Its a great way to dip your toe in the water and learn about trading. Even if you know all about stock trading the fact that the trades are free is incentive enough to join. If you use my link both you and I get a free stock. So, here is my link. Click it and have fun! GO TO ROBINHOOD NOW CLICK HERE
image from Forbes.com