Robinhood – Free Stock Trading – Review

Here is a free stock referral link for Robinhood: click here.

On January 29, 2017, I started using Robinhood App as a test for buying stocks. I was motivated/intrigued by the offer of free stock trades.  My biggest hurdle with risk diversification was always the high cost of purchasing stocks. I was always forced to buy large or larger volume of stocks to account for the brokerage fees, yes even $4.95. Then, I could not diversify because I did not have enough money left over. Thus,  I could not participate freely in the marketplace because I am a miniscual participant with an insignificant amount of money to grow my portfolio. Then, Robinhood came along to save the day, actually change my life for the better.

Transaction History PDF: Stock Purchase History

I did 172 transactions Robinhood. Some were sales but most were purchases. Total transactional costs for thoses transaction was $0.00. Total savings of acquiring those stocks 172 times $4.95 = $851.40. My portfolio is currently up $377.02 or 5.24%, not including dividend income.  So, if I have not used Robinhood, I would have never ever been able to 1. purchase those stocks, 2. have any gains, and be 3. as diversified as I am today.

One very interesting observation that it was totally unexpected to me that my I purchased $6,300 worth of stocks. I never thought that I would be as much as I did but as I went on, I was motivated that I could participate in the market with no costs.

Is this app a viable way to acquire/hold/maintain a stock portfolio? The answer is 100% yes.

Limitations of Robinhood: There are some limitation of this app that relates to research and analysis tools but to be honest, I can get the information from other brokers.

Purchasing/Selling: Easy