Robinhood Investing Review 2025

Robinhood Investing is for active, options, and margin traders who want accessible, commission-free trades on mobile. However, Robinhood's crypto selection is fairly limited, so investors looking to trade a wider range should look elsewhere. 

Business Insider's personal finance team compared Robinhood Investing to the best stock trading apps and found it to be an industry leader for active investing.

Pros and Cons

Robinhood Pros

• No minimum investment requirement
• Commission-free trading of stocks, ETFs, options, and cryptocurrencies
• IPOs available
• Gold members earn 4.00% APY
• 1% match on IRAs

Robinhood Cons

• Limited selection of cryptocurrencies
• Lack of trading tools and resources
• No automated investing option
• No mutual funds, joint accounts, or educational account options

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Robinhood Overview

Robinhood offers stocks, ETFs, fractional shares, options, and cryptocurrencies. Commission-free trading on Robinhood is available for stocks and ETFs.

The platform also offers IRAs with up to a 3% match for every dollar you contribute to a Robinhood IRA. Only Robinhood Gold members get access to the highest match bonus.

Investors can store crypto assets, NFTs, and dApps offline in a web3 wallet. However, serious crypto investors looking for a wide range of cryptocurrencies should seek out a different platform with a large crypto selection.

Robinhood accounts are available as both cash and margin. When deciding to open a cash account versus a margin account, it will depend on how you want to fund your account. Cash accounts are funded with existing money from your bank account, while margin accounts can be partially funded with borrowed money from a lender.

It's a good pick for people who understand the risk of cryptocurrency and are ready to start active trading. If you have never invested money before, you should start with passive investing.

It isn't a good choice for true beginners or those searching for mutual funds and automated investing.

Ways to Invest with Robinhood

Let's explore what you can trade on Robinhood.

Robinhood Stocks and Funds

Robinhood is best for active traders who place commission-free trades in stocks, options, ETFs, and cryptocurrencies. The brokerage account has no minimum size requirements for most of its investments, but you'll have to make minimum opening deposits for its fractional shares and margin trading offerings.

You'll also need a portfolio balance of at least $25,000 for pattern-day trading.

Robinhood offers fractional shares, meaning you can purchase portions of stock in companies without paying the full share price. You'll only need $1 to get started. And its advanced charts give all users access to a more in-depth analysis of different investments.

Moreover, Robinhood's web platform and mobile offerings are straightforward to navigate. And you'll get one share of free stock when you open an account. You'll also get a free stock whenever you make successful referrals and 4.00% on uninvested cash as a Gold member.

Robinhood Options

Robinhood's commission-free option trading includes a notable perk: no per-contract fees. Many brokers charge under $1 per options contract, and some platforms use tiered pricing structures that charge lower fees for more active traders and higher fees for less active traders.

But with Robinhood, you'll incur no such fees. It's worth pointing out that options investing carries more risk than stocks and ETFs. Robinhood offers options for risk disclosures on its website. And while Robinhood formerly required its users to have a margin account for options trading, you can now trade options with a regular cash account.

Use the investing app's options rolling feature to adjust or extend your options position. Investors can customize trading strategies and easily build spreads with Robinhood's Strategy Builder Plan.

Robinhood Cryptocurrency

This platform's commission-free rule also applies to cryptocurrencies. The Robinhood Crypto account feature lets you trade various digital currencies such as bitcoin, dogecoin, and ether. In total, Robinhood offers a handful of different cryptocurrencies.

This is a limited selection compared to exchanges (e.g., Kraken and Coinbase) that offer 100+ assets. However, the brokerage's selection could still be useful if it supports the asset you want to exchange.

Use any funds deposited into your brokerage account to purchase cryptocurrencies through Robinhood Crypto. Robinhood also rolled out cold storage crypto wallets in early 2022.

Before its wallet launch, users couldn't transfer crypto from or to external wallet addresses. But now, you can send any crypto assets to your chosen wallet. In addition, Robinhood offers a web3, non-custodial crypto wallet and DeFi platform.

The app will let users exchange crypto without network fees, store NFTs and access NFT marketplaces, use DeFi protocols, and connect to DeFi apps.

Robinhood IPOs

Robinhood has IPO access. Unlike other popular brokerages that require a minimum household asset size for investors who want to take advantage of the IPO offer price, Robinhood says it has no minimum balance or special status requirements.

This investment offering is best for traders who want to buy a company's IPO shares before they're listed on an exchange for the public. A big downside is that you aren't guaranteed to receive IPO shares when you request them. This is because Robinhood gets a limited amount of shares of each IPO.

Robinhood is also not an underwriter for companies issuing IPOs and will only get access to initial public stock when invited to participate by investment banks. This means there's no guarantee that Robinhood will be able to offer shares of Reddit's IPO, for example.

Robinhood IRAs

Robinhood provides IRAs for those looking to build long-term wealth through a retirement account. The investment apps offer traditional and Roth IRAs, with commissions-free trades, recommended portfolios, and up to a 3% match on every dollar that goes toward your IRA.

Robinhood only trades stocks and ETFs in its IRAs.

Robinhood Gold

Robinhood Gold allows you to trade on margin and access Morningstar professional research reports and level II Nasdaq market data. Gold has a $5 monthly subscription fee, but you can sign up for 30 free days.

With margin trading, you're essentially borrowing money from a brokerage to invest in securities or other financial assets you can't afford, but you'll need to maintain a $2,000 minimum with Robinhood. Your investments are collateral for the margin loan, and you'll have to repay your borrowed funds. Gold members get a lower margin rate compared to non-Gold members (8% interest instead of a high 12% rate)

Gold members can earn 4.00% interest on uninvested cash in their brokerage accounts. Non-Gold members can earn 0.01% if enrolled in a cash sweep.

Gold members are also the only Robinhood users eligible for a Robinhood Gold credit card.

Robinhood Fees

Robinhood has no minimum to open an account and start investing, plus there's a 0% fee. However, fractional shares have a $1 minimum and a $2,000 minimum requirement to access margin trading. To upgrade to Robinhood Gold, you must pay $5 per month.

There's a 1.75% fee on instant debit card or bank account withdrawals.

Robinhood Trustworthiness

Robinhood has an A- rating with the Better Business Bureau. The BBB says the brokerage has a pattern of complaints showing multiple users could not withdraw funds from their investing accounts.

In 2024, Robinhood agreed to pay a $7.5 million settlement after Massachusetts Secretary of State Bill Galvin alleged that the platform used "gamification" strategies to encourage young, inexperienced customers to make risky trades. The original enforcement action was filed in 2020. The deputy general counsel and head of government affairs said the deal "resolves historical matters dating back to 2021 that do not reflect Robinhood today."

In 2021, Robinhood faced intense scrutiny after it halted trading on several stocks — namely GameStop (GME) and AMC Entertainment (AMC) — which skyrocketed due to the efforts of members of a Reddit forum called r/WallStreetBets. The investment app eventually reopened trading on many of the stocks it had temporarily restricted, but its restrictions led to user retaliation and major lawsuits. In 2023, a federal judge dismissed a lawsuit brought by customers who were affected by the restrictions in GameStop trading.

How to Transfer Stocks Out of Robinhood

Before you start the transfer, Robinhood asks you to take care of any account restrictions or negative balances, as this will delay the process. To initiate the transfer, you must call your new brokerage and ask them to provide instructions to Robinhood and its clearing partner.

According to Robinhood's support page, you'll also need to ensure the transfer you've initiated is an ACATS (automated customer account transfer service) transfer. This means you can't use other stock delivery methods — such as transfer agent transfers or check transfers — when moving your stocks.

If the brokerage you're transferring to asks for your Robinhood Securities account number, you can find this information by clicking on the account icon in the bottom right corner of your mobile app, clicking Investing, and then copying the number at the top of the screen.

How Robinhood Makes Money

Instead of charging commissions, Robinhood makes money through payment for order flow. When a user makes a trade, Robinhood sends that trade to a third party that places many large orders simultaneously for a slight advantage. The larger company then compensates Robinhood. The brokerage also generates income from interest on securities and margin loans and with Robinhood Gold, a premium subscription service that charges a flat monthly fee. 

Robinhood also charges several fees for certain services and transactions, and it may pass on third-party costs to its customers. Learning when you might pay extra is good practice to avoid surprises when using the app.

If you use Robinhood, you won't pay annual, commission, inactivity, or fees for moving money to your bank account. But you'll pay a $5 monthly fee to upgrade to a Gold account and various service fees for requesting a paper statement. The brokerage will also pass on third-party costs, such as regulatory fees and out-of-network ATM fees, to you. It's possible to avoid some of these costs, but you'll need to understand when they may apply. 

How to Minimize Robinhood Fees 

When you open a Robinhood account, you're already avoiding fees that other brokerages charge. But if you want to minimize some of the other costs of using Robinhood, you can try the following.

• Avoid the upgrade: Consider using the free account instead of upgrading to Gold service.
• Research fees before buying: Before placing a trade or requesting any services, visit Robinhood's support page and look for information about fees and when they apply. 
• Search for in-network ATMs: You can withdraw cash from your Robinhood account for free using a debit card at participating stores and at in-network ATMs. Tap the "Find ATMs" button in your Robinhood app to find the nearest withdrawal locations. 
• Check out the foreign stock: Before buying shares from a foreign company, find information about potential fees from the bank that issues the American Depositary receipt.
• Go paperless: Instead of paying for paper monthly statements and confirmations, choose the electronic versions. 
• Transfer to your own bank account: Robinhood charges you a fee when transferring money to a competing brokerage but not to your own bank account. If you need to pull money out of your Robinhood account, consider moving it to your bank first and then investing elsewhere.

Robinhood Alternatives

Here's how Robinhood compares.

Robinhood vs. Fidelity

Fidelity is one of the top online brokers for automated investing, educational resources, investment options, and low-cost trading. Robinhood and Fidelity Investments both offer commission-free trading on multiple investment types. But you'll have a wider range of investment options at Fidelity than you will with Robinhood.

Both companies offer stocks, ETFs, and options, but unlike Robinhood, Fidelity offers automated investing and advisor-managed portfolios for hands-off investors, making it a better fit for true beginners. The brokerage also has a more extensive account and investment selection.

However, Robinhood is better for all-around commission-free trading and crypto trading.

Fidelity investments review

Robinhood vs. SoFi Investing

SoFi® is an investment app suitable for all kinds of investors but is generally best for beginners and passive investors. Robinhood and SoFi Active Invest® have similar investment offerings, but Robinhood is the cheaper option when it comes to trading fees.

If you like the sound of active trading, though, and don't mind doing a bit of your research on your investments, Robinhood's low fees and commission-free securities could be a good fit.

SoFi Invest review

Robinhood FAQs

Why You Should Trust Us: How We Reviewed Robinhood

Robinhood was reviewed using Business Insider's rating methodology for investing platforms. Betterment online brokerage and robo-advisory services were compared to other investment apps based on their account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 1 and 5.

Tessa Campbell

Investing and Retirement Reporter

Tessa Campbell is an investing and retirement reporter on Business Insider’s personal finance desk. Over two years of personal finance reporting, Tessa has built expertise on a range of financial topics, from the best credit cards to the best retirement savings accounts.ExperienceTessa currently reports on all things investing — deep-diving into complex financial topics,  shedding light on lesser-known investment avenues, and uncovering ways readers can work the system to their advantage.As a personal finance expert in her 20s, Tessa is acutely aware of the impacts time and uncertainty have on your investment decisions. While she curates Business Insider’s guide on the best investment apps, she believes that your financial portfolio does not have to be perfect, it just has to exist. A small investment is better than nothing, and the mistakes you make along the way are a necessary part of the learning process.Expertise: Tessa’s expertise includes:

• Credit cards
• Investing apps
• Retirement savings
• Cryptocurrency
• The stock market
• Retail investing

Education: Tessa graduated from Susquehanna University with a creative writing degree and a psychology minor.When she’s not digging into a financial topic, you’ll find Tessa waist-deep in her second cup of coffee. She currently drinks Kitty Town coffee, which blends her love of coffee with her love for her two cats: Keekee and Dumpling. It was a targeted advertisement, and it worked.

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Elias Shaya

Compliance and Operations Associate

Elias Shaya is a Compliance and Operations Associate on Business Insider's personal finance team in New York. He collaborates with the editorial team to provide timely, accurate, and impartial financial advice to readers ExperienceElias is a point person on multiple personal finance topics, from credit cards to investment products. He ensures editorial content is transparent and accessible through clear and precise language while also complying with regulatory and partner marketing guidelines. Since joining as a compliance fellow in 2022, Elias has played a crucial role in the team’s compliance efforts, ensuring no stone is left unturned. His close attention to detail and broad knowledge of various complex financial subjects help minimize risk for partners while protecting editorial independence so readers get the best possible advice. Expertise: Elias’ expertise includes:

• Credit cards
• Investing
• Loans
• Mortgages

Education: Elias graduated from the College of Staten Island with a degree in International Business.When he’s not reviewing or updating personal finance topics, Elias enjoys traveling, comedy shows, and binge-worthy TV shows.

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