Robinhood – Anyone Can Invest
Robinhood is perfect for new investors
We’re having a look at Robinhood, an online brokerage that boasts “Investing for Everyone.”We recommend Robinhood as it’s good for beginners.
Robinhood – GRADE: A-
Because Robinhood has no retirement account, Financial Joy School gives this brokerage an A- overall. It is one of the better brokerages out there if you’re just starting out, so be sure to have a look and see if they’re the right fit for you.
What is a brokerage account? A brokerage account is what you open when you’re ready to buy and sell stocks and bonds, as well as mutual funds. These accounts can be opened by a wide array of brokerage firms. Today, we’re having a look at Robinhood, an online brokerage that boasts “Investing for Everyone.”
We recommend Robinhood as it’s good for beginners. When you open an account here, it is for one personal account, you don’t need to pick and choose what type of account you’ll want or need. This eliminates the headache of needing to have everything sorted, or even completely understood.
For New Investors
Robinhood is perfect for new investors who might want to jump right in, or perhaps only dip their toes into the wide world of investing. It works both online and through an app you can download on your mobile device. With a few clicks, your money can work for you on the stock market.
If you’re not sure where you should invest your money, there’s no worries at Robinhood. You can invest any amount of money, even one single dollar, and they will convert your contribution to owning parts of a share. You’ll also be able to do this across several companies rather than putting all your money into one. That way, you’ll reduce your risk of loss by holding pieces of stocks across the board. It’s wise to spread your investments throughout several types of stocks. If you buy and trade during market hours, you’ll be trading in real time and see the true price of each share.
Crypto
If you’re interested in cryptocurrency, Robinhood accepts and trades crypto as well. This brings amazing financial diversity to a personal brokerage account. Without needing to know all the ropes, anyone can invest with Robinhood and grow their wealth. Through their app, you’ll be able to link your bank account or your digital wallet and add funds as you want or need.
IPOs
If IPOs are your thing, Robinhood offers IPO access and allows the public to invest at the IPO price. You do not need to hold a special status or have any minimum account balances. This opportunity allows you to invest in an IPO before their stocks go public. These options could become extremely lucrative investments. Even if you know nothing about IPOs as a rule, it’s better to try your hand investing in one and see where it goes rather than wishing you had invested after they go public.
The Downside
Robinhood Brokerage does have one ding about it, however, and that is they have no available retirement account. While offering a brokerage account for beginners, it would be nice if they also had retirement accounts for beginners. Even so, what they do offer is worth the time and effort to try, and perhaps you’ll be pleasantly surprised by the results!
To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.
