Robinhood has become a household name in the world of investing, thanks to its user-friendly interface, zero-commission trades, and the ability to buy fractional shares. The app has helped democratize investing, making it more accessible to everyday people. But with its rise in popularity, there have been concerns about its impact on the markets and the behavior of retail investors. In this article, we will take a closer look at Robinhood investing, its pros and cons, and the best stocks to buy on the platform.
What is Robinhood?
Robinhood is a commission-free trading app that allows users to buy and sell stocks, options, and cryptocurrencies without paying any fees. The app was founded in 2013 by Vlad Tenev and Baiju Bhatt and has since grown to over 13 million users. Robinhood's mission is to provide easy access to the financial markets and to help level the playing field for retail investors.
How does Robinhood work?
To start using Robinhood, users must create an account and link it to their bank account. Once the account is set up, users can start buying and selling stocks and other securities. Robinhood also offers a feature called Robinhood Gold, which allows users to trade on margin and access other premium features for a monthly fee.
Robinhood Pros and Cons
One of the biggest advantages of Robinhood is its commission-free trading. This makes it an attractive option for investors who are looking to cut costs. Additionally, Robinhood offers fractional shares, which allows users to buy a portion of a share instead of having to buy a whole share. This can be helpful for investors who want to invest in expensive stocks but don't have a lot of money to invest.
However, Robinhood has also faced criticism for its lack of customer support and its role in the GameStop saga earlier this year. Some users have also reported technical issues with the app, which can be frustrating for investors who are trying to make trades.
Best Stocks to Buy on Robinhood
If you're new to investing and are looking to get started on Robinhood, there are a few stocks that are worth considering. These stocks are popular among Robinhood users and are generally seen as good long-term investments:
- Apple (NASDAQ:AAPL)
- Amazon (NASDAQ:AMZN)
- Microsoft (NASDAQ:MSFT)
- Tesla (NASDAQ:TSLA)
- Facebook (FB)
- Alphabet (NASDAQ:GOOGL)
- NVIDIA (NASDAQ:NVDA)
- Netflix (NASDAQ:NFLX)
- Square (NYSE:SQ)
- Advanced Micro Devices (NASDAQ:AMD)
- Moderna (NASDAQ:MRNA)
Of course, it's important to do your own research and invest in companies that align with your values and investment goals. Additionally, it's always a good idea to diversify your portfolio and not put all your eggs in one basket.
Conclusion
Robinhood has revolutionized the way people invest in the stock market, making it more accessible and affordable for everyday investors. While there are some concerns about the app's impact on the markets and the behavior of retail investors, it's hard to deny the convenience and ease of use that Robinhood offers. If you're looking to get started with investing, Robinhood could be a good option for you. Just be sure to do your own research and invest wisely.
