At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About Robinhood
Robinhood democratized stock trading by removing the $7-$10 per-trade commissions that kept many young investors out of the market. The company launched in 2013 and grew to 23 million funded accounts by making investing feel like a mobile game: confetti animations on your first trade, a clean interface that hid complexity, and fractional shares starting at $1. The result was a generation of first-time investors who bought stocks through their phone before they understood what a P/E ratio meant. Whether that was a net positive for financial literacy or a gateway to gambling disguised as investing depends on who you ask. The business model relies primarily on payment for order flow (PFOF) -- selling customer orders to market makers like Citadel Securities and Virtu Financial, who profit from the spread between bid and ask prices. Robinhood received $587 million in PFOF revenue in 2024, which works out to roughly $25 per funded account per year. The controversy: PFOF creates a conflict of interest because Robinhood is incentivized to route orders to the market maker that pays the most, not the one that gives customers the best execution price. Fidelity, which does not accept PFOF on equity orders, claims its customers get better price improvement. The actual impact per trade is small (fractions of a cent per share) but adds up at scale. The January 2021 GameStop incident permanently damaged Robinhood's reputation among its most engaged users. When GME stock surged from $20 to $483, Robinhood restricted buying of GME and several other volatile stocks, citing clearinghouse capital requirements. Robinhood's explanation (they did not have enough collateral to cover the settlement risk) was technically accurate but tone-deaf: telling retail investors they cannot buy a stock while hedge funds can sell it seemed to confirm the suspicion that the system is rigged. The company has since improved its capital reserves and settlement infrastructure, but the trust damage was significant.
Key Features
Clean, Intuitive Mobile App
Robinhood's primary advantage is design. The app strips away the complexity that makes traditional brokerage interfaces intimidating. Buying a stock takes 3 taps. Portfolio performance is displayed as a single line chart. There are no order routing options, no level-2 data, no advanced order types cluttering the interface. This simplicity is the product -- it is why 23 million people chose Robinhood over Fidelity, which has better features but a more complex UX.
Robinhood Gold ($5/month)
Gold membership provides 4.9% APY on uninvested cash (among the highest of any brokerage), 3% IRA match on contributions, professional research reports from Morningstar, NASDAQ Level II market data, and larger instant deposits. The 4.9% APY alone beats most high-yield savings accounts and makes Gold worthwhile for anyone with $1,500+ in uninvested cash ($5/month Gold fee = $60/year; 4.9% on $1,500 = $73.50/year).
IRA with 1% (Gold: 3%) Match
Robinhood offers a 1% match on all IRA contributions (Traditional, Roth, and Rollover), increasing to 3% for Gold subscribers. This is free money -- a $6,500 Roth IRA contribution with Gold earns a $195 match. No other brokerage matches IRA contributions. The match vests immediately, though Robinhood claws back the match if you withdraw or transfer out within 5 years.
Crypto Trading (20+ assets)
Robinhood offers crypto trading alongside stocks from a single account. The fee is a spread-based markup (typically 0.5-1.5% depending on the asset). Robinhood has improved crypto offerings to include wallet transfers, meaning you can move crypto off the platform to your own wallet. Selection is limited to ~20 major assets compared to 250+ on Coinbase.
How It Works
Download the App and Sign Up
Available on iOS and Android. Account creation takes under 5 minutes. Link your bank account for ACH deposits (free, 1-3 days). Instant deposit gives you immediate access to up to $1,000 while the ACH settles ($5,000 for Gold).
Consider Robinhood Gold
If you will maintain $1,500+ in cash or want the 3% IRA match, Gold pays for itself. Do the math: $5/month = $60/year. 4.9% on $1,500 = $73.50/year. Even at the break-even point, the Morningstar research and Level II data are free bonuses.
Open a Roth IRA (If Eligible)
The 1% match (3% with Gold) is unique to Robinhood and makes their IRA objectively better than identical accounts at Schwab or Fidelity for the same investments. Max out your Roth IRA here before contributing elsewhere to capture the full match.
Build Your Portfolio
Fractional shares start at $1. Set up recurring investments (weekly or monthly) for dollar-cost averaging. Robinhood's limited research tools mean you should supplement with external research before buying individual stocks.
Understand the Limitations
No mutual funds. Limited bond access. Basic charting. No tax-loss harvesting. No financial advisor access. Robinhood is best as a starter brokerage or supplement -- not your only investment account. For long-term, complex portfolios, you will eventually outgrow it.
What They Do
- Stock & ETF Trading ($0)
- Options Trading ($0)
- Crypto Trading (20+ assets)
- Fractional Shares
- IRA with Match
- Robinhood Gold
- Cash Management
- IPO Access
- Robinhood Wallet (Crypto)
Debt Types They Take On
- Individual Brokerage
- Traditional IRA
- Roth IRA
- Rollover IRA
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Roth IRA with 3% Gold Match
A 25-year-old opened a Robinhood Roth IRA with Gold ($5/month) and contributed the maximum $7,000. With the 3% Gold match, Robinhood added $210 to the account. The investor put everything into VOO (Vanguard S&P 500 ETF).
First-Time Investor Starting with $50
A college student opened Robinhood with $50, buying fractional shares of 5 companies ($10 each) to learn about the market. The student set up $25/week recurring investments and tracked portfolio performance through the app.
Cash Management with Gold for High-Yield Savings Alternative
A user maintained $30,000 in uninvested cash at Robinhood Gold, earning 4.9% APY. The same cash at a typical bank savings account would earn 0.01-0.50%.
Pros & Cons
Pros
- The simplest, most intuitive investing app available -- 3 taps to buy a stock, no confusing interfaces or jargon
- IRA with 1% match (3% with Gold) is unique among all brokerages -- free money on retirement contributions that no competitor offers
- Robinhood Gold at $5/month provides 4.9% APY on cash -- higher than most high-yield savings accounts with no balance requirements
- $0 options commissions ($0 per contract) is the cheapest options pricing in the industry -- Schwab and Fidelity charge $0.65/contract
- Fractional shares starting at $1 with recurring investments make dollar-cost averaging accessible to any budget
Cons
- BBB rating of F and Trustpilot rating of 1.2 reflect deep customer service problems -- getting help when something goes wrong is notoriously difficult
- Payment for order flow creates a conflict of interest; Fidelity (no PFOF) claims better execution quality on equity orders
- GameStop trading restrictions in January 2021 revealed that Robinhood's clearing infrastructure was not prepared for extreme volatility, and trust has not fully recovered
- No mutual funds, limited bond access, no tax-loss harvesting, and no financial advisor option -- Robinhood lacks tools for complex financial planning
- 5-year clawback on IRA match means transferring your IRA to another brokerage within 5 years forfeits the match -- a form of lock-in
User Reviews (10)
Crypto is convenient
Having crypto and stocks in one app is nice. The crypto fees are higher than Kraken but the convenience is worth it for my small BTC position. I use Kraken for serious crypto and Robinhood for the stuff I just want to hold.
Good for basics, bad for everything else
If you want to buy some stocks and that's it, Robinhood is fine. If you want mutual funds, bonds, tax planning tools, or to talk to a human... go elsewhere.
Outgrowing it
Used Robinhood for 3 years as my first broker. Now I need mutual funds, tax-loss harvesting, and a real customer service line. Moving most of my money to Fidelity but keeping the IRA at Robinhood for the match.
Gold is worth it
The 4.9% on cash is great. I keep my emergency fund in Robinhood Gold. The IRA match is nice bonus too. For $5/month you get a lot.
Free options trading
The $0 per contract on options is killer. I sell covered calls weekly and the savings add up compared to Schwab. Execution is probably slightly worse but for small positions it doesn't matter.
Best app for starting out
Started investing with $25. Now I put in $50 a week. The app makes it so easy. I buy fractional shares of companies I actually use. Learning a lot.
IRA match is unique
Only broker that matches IRA contributions. Even at 1% it's free money. With Gold at 3% it's a no brainer for my Roth.
meh
Customer service is terrible. I had an issue and it took 2 weeks to get a response. And the response didn't even address my question.
GME RESTRICTIONS WERE CRIMINAL
I will NEVER forgive Robinhood for what they did during GameStop. They blocked buying so hedge funds could cover their shorts while retail investors got destroyed. I don't care what their excuse was. They showed whose side they're on and it's not ours. Moved everything to Fidelity the next week. I tell everyone I know to avoid Robinhood.
PFOF is not free trading
You think you're getting free trades but you're paying through worse execution. The spread you get on Robinhood vs Fidelity is measurably worse. You're the product not the customer. The entire business model is selling your orders to Citadel. "Commission-free" is marketing.
Write a Review
Frequently Asked Questions
Embed This Badge on Your Website
Robinhood has earned a Best for Beginners designation from Zogby. Display this badge on your website to showcase your rating.
Paste this code anywhere in your website's HTML. The badge links back to your full Zogby review.
Related Companies
Important Investing Disclaimers
- All investing involves risk, including loss of principal. Past performance does not guarantee future results. Returns and yields quoted are historical and not indicative of future performance.
- Brokerage accounts are not FDIC insured. Securities held in brokerage accounts are protected by SIPC up to $500,000 (including $250,000 for cash claims). SIPC does not protect against market losses.
- Robo-advisor and managed account performance depends on market conditions, asset allocation, and individual circumstances. Advertised returns reflect backtested or historical model performance and may not reflect actual client returns after fees.
- Cryptocurrency is not legal tender, is not backed by any government, and accounts holding crypto are not subject to FDIC or SIPC protections. Crypto markets are highly volatile and unregulated compared to traditional securities markets.
- Zogby does not provide investment advice. We are an independent comparison service. We do not manage portfolios, execute trades, or hold assets on your behalf.
This page is informational, not financial or legal advice. Talk to a qualified professional before making any big money decisions.
Editorial Independence
We make money from some companies on this page. That doesn't change our rankings -- the editorial team scores every product independently, and the business side has no say in what we recommend.