Is Robinhood a good choice for beginners? Well, it depends on what you want to do with your money. Some users find it a bit basic, while others love its simplicity. Either way, there are a few things that can make it a good choice for beginners. Here are some of the cons of Robinhood. Not only does it lack the features that seasoned investors look for, but its interface also lacks a lot of features.
Free trading is a big plus, because you can trade stocks and other types of securities without paying a penny. This can be a significant savings, especially if you are a new trader. Also, Robinhood is one of the few brokers with no per contract fee, which shows their commitment to lowering investor costs. It also has some limitations when it comes to advanced trading tools, but that’s the nature of a free platform.
Investing on margin is a risky business. The good news is that you can use the platform to invest on margin, which gives you two times the buying power. You don’t have to invest a lot, but it’s worth it if you have some experience with investing. You can even set a margin limit, and get free access to Level II market data, including Morningstar research and real-time bids from the Nasdaq. Plus, there are no minimum balance requirements or account service fees.