Is Robinhood app a broker?
Robinhood is an online discount brokerage that offers a commission-free investing and trading platform. The company gets the vast majority of revenue from transaction-based revenues, including payment for order flow.
Is Robinhood app legit?
Although its low fees and usability are sure to hook users, investors should be wary of Robinhood. In recent years, Robinhood has faced regulatory fines, public scrutiny, and lawsuits. In 2020, Robinhood was hit with a $65 million fine by the Securities and Exchange Commission (SEC) for misleading customers.
Is Robinhood good for beginners?
Robinhood is a pioneer in the no-commission brokerage model. It remains a solid choice for beginners, as they can invest in stocks, ETFs, and options with zero commissions.