By: Alex Siminoff
Originally posted on STARTUP PANEL.
Stock trading made easy. Stock trading made free. Stock trading made the right way.
Introducing Robinhood; the state of the art stock trading app, that cuts out the middle man. Located in Palo Alto, California, this iPhone and Android app is comparable to E*Trade and TD Ameritrade, but Vlad Tenev and Baiju Bhatt, Robinhood’s co-owners, are targeting an untapped market of millennials curious about buying stocks. There are no fees for transactions, however, you have to wait three days for a transaction to go through.
As of February 23, 2016, Robinhood has pushed an update called Robinhood Instant, where you no longer have to wait three days for transactions to go through. This update lets you instantly add up to $1,000 from a bank transfer and as mentioned, have instant access to your money on the app. It’s free, but the only way to upgrade to instant is by sharing a unique link through the app, smart marketing.
Robinhood has a simple design and is easy to use, regardless of whether or not you are the seasoned trader or a newbie. It holds a ton of information that is surprisingly quite easy to use and interpret. On top of that, it takes just a few minutes to be set up and you’re ready to trade. It is made in a superb fashion to target millennials and make them aware of stock trading, all through your smartphone.
To put things into perspective, a user by the name of Marlon had to say this about the app; “Robinhood is the first trading platform that made it easy to execute and visualize trades. The UI is clean and intuitive. It turns black when the markets are closed and white when they open. The search icon and other icons are red or green based on your overall position, even if you aren’t looking directly at your portfolio, keeping you present regardless of where you are within the app. The fact that it’s not only mobile optimized but mobile exclusive, shows that these guys really understand where the market for trading is heading. Hands down the best finance app I’ve ever used.”
If they don’t make a percentage per trade, how do they even make money? Robinhood makes money in many of the same ways as traditional online brokerages, including collecting interest from customers who choose to upgrade to a margin account. “We are testing margin in beta and will offer margin accounts later this year,” says Robinhood on their support page.
This groundbreaking company made a splash on the market in 2013 and has continually improved on becoming a household name.