Robinhood is a silicon-valley type of tech company that found an opportunity to monetize securities without the typical commission-per-trade model. However–similar to traditional brokerages–Robinhood does earn interest on your uninvested money.
If you have uninvested money in Robinhood, your money is better suited in a high-yield savings or checking account like what you can get from Schwab.
Robinhood has many features but lacks in the stock-research options.
Now that Charles Schwab has gone commission-free AND purchased TD Ameritrade who owns the superb trading platform Think or Swim, Robinhood isn’t the champion of trading it once was a short time ago.
However, Robinhood still has an amazing user-interface and routinely adds new services, like fractional shares.
It makes sense to use Robinhood if you like their UI for their trades. However, don’t make decisions using Robinhood; just execute the trades there. You need to use a tool like Think or Swim to see stock studies and other crucial information.
Robinhood Fractional Shares
Fractional shares allow you to invest as little as $1 into stocks and ETFs(electronically traded funds). Instead of owning an entire share, you can own a fraction of a share with a much smaller investment.
Fractional shares are good for individuals who cannot contribute a lot of money but still want to invest in their future.
Fractional shares are also good for investing in expensive companies or funds like Berkshire Hathaway or Amazon, currently trading at $340,000 and $1,789 per share.
How to Gain Access to Robinhood Fractional Shares
To gain access to buy and sell Fractional shares before anyone else, join the waiting list here.
When you join you’ll get a free stock regardless of whether or not you trade.
Investing doesn’t have to be complicated
The Bible of investing, The Intelligent Investor, recommends dollar-cost averaging, where you invest a set amount of money each month into the market automatically–money that you don’t touch regardless of what happens to the market.
The best, most consistent returns happen when you leave your money alone for a long time. That’s the magic of compound interest.
Fractional shares are another security you can add to your portfolio. They’re great for buying a piece of high potential securities that are too expensive for most retail traders and investors.
You can get added to the waitlist and receive a free stock by using this link.