Who is Robinhood?
The idea of the creation of Robinhood was born after the crisis of 2008 ahead of the alarming realization that the investment within the stock exchange was suffering from a robust opacity.
It was in 2013 that the corporate really saw the light of day after months of negotiations to supply a finished product closest to the expectations of target customers. In our opinion, Robinhood focuses totally on novice traders and on a reasonably young age group: those under 35.
Robinhood fees and commissions
This is one among the platform’s flagship promises: no commissions . This goes for stocks, options and ETFs. But how does she do for the rest? How is she paid? Here’s our Robinhood review on the fees and the way they work.
|Robinhood – Fee type||Amount|
|Equity fees, ETFs||No commission|
|Inactivity Fee||No charges|
|Withdrawal / transfer fees||
|Commissions for control bodies||
|Trading commissions||$ 22.10 per $ 1,000,000 of capital|
On Robinhood, there’s no minimum deposit. In our opinion Robinhood on distinguishes positively on now. it’s indeed not uncommon for brokers to invite 100 or 200 € deposit, which may be an obstacle for novice traders. As we’ve seen, the broker is aimed toward a reasonably young core target with a reasonably small investment portfolio.
However, so as to line up a diversified investment strategy, we recommend that you simply start with a particular amount. 100 or 200 $ seems to us to be a minimum to possess a sufficiently large portfolio of assets to not be impacted by the market.
This is valid for the classic account. If you would like to open a brokerage account, the Robinhood platform would require your balance to be greater than $ 2,000.
Robinhood Costs Control
In the US , the activity of regulated broker requires the payment of commissions to regulatory bodies. this is often to settle the varied costs linked to the control of the broker in question. Robinhood passes these costs on to its customers.
The fees are $ 0.000119 for selling stocks and $ 0.002 per asset for selling options. These fees are rounded up to the closest cent and never exceed $ 5.95.
Transaction fees can also apply; they’re within the order of $ 22.10 per $ 1 million in capital.
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