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Robinhood Review – Is Robinhood Safe?

Everything you need to know about Robinhood to start trading stocks...

I Love Making Money Staff & writers

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What is Robinhood?

We can no longer recommend Robinhood as safe after they restricted users from buying certain stocks. We believe they manipulated the stock to protect billionaire hedge funds.

Robinhood is an online brokerage firm that allows you to trade stock, etf's, options and crypto at no cost. They allow you to open an account within a day with no minimum deposit, and they give you one free stock when you open an account.

Click Here to Claim Your Free Stock – This is through our partner link and we earn $4 when you signup through our account. When you click the link, you'll reach Robinhood's Claim Your Free Stock page.

Robinhood Investing

Trading U.S. stocks and ETF's is free at Robinhood and Robinhood doesn't charge a withdrawal fee or an inactivity fee. Opening an account is fully digital and can be completed in the next 10 to 20 minutes. This is for US clients only and IRA accounts are not available.

Right now, you can invest in over 5,000 stocks, including most U.S. equitiees and ETF's listed on U.S. exchanges. Robinhood currently supports the following assets:

  • ETF's
  • U.S. Exchange Listed Stocks
  • Option Contracts for ETF's
  • Option Contracts for Stocks
  • ADR's for Over 650 Companies

Robinhood Free Stock

There are two ways to get free stock within Robinhood. The first is to signup through our referral link here. Secondly, Robinhood gives you free stock if you send someone your referral code and they signup for Robinhood. (which is what I'm doing here with my link)

Free Stock from Robinhood
Source: Reddit

People have reported getting a share of Apple and Tesla while most have reported getting a share worth $30 – $40 range. I'd love to see what you get. Click here to claim your free stock, and then, leave a comment letting me know what you get.

My free stock with Robinhood
My Free Stock with Robinhood

I created my own account with Robinhood so I can do full trainings and walkthroughs using the platform. They approved me within 5 minutes and within 30 minutes, THIS was my free stock. I got one share of WPX Energy as you can see in the screenshot of my backoffice.

Minimum Deposits at Robinhood

There is no minimum deposits to open an account with Robinhood. If you choose to upgrade to Robinhood Gold, you have to deposit a minimum of $2,000.

What You Need to Get Started with Robinhood Investing

To open an account with Robinhood, you need to meet the following requirements:

  • Be 18 years or older
  • Have a valid Social Security Number (or Tax ID Number)
  • Have a legal United States residential address.
  • Be a U.S. Citizen, Permanent Resident or Have a Valid U.S. Visa

What to Expect When Opening an Account

First: Click Here to Open Your Account (We Earn a $4 Commission When You Signup)

Second: You'll receive an email within one trading day either confirming your application's been approved (or asking for more info). Because everything checked out with my questionnaire like citizenship, social security, address, I was approved within 5 minutes and the free stock was in my account within 30 minutes.

Lastly: If you've been approved, you're ready to go. If they ask for more info, just upload your documents using the instructions in the email.

Robinhood App

Looking for examples / demos of the app? These are pictures of how Robinhook looks on your phone.

How to Download the App

Once you've setup your account (and claimed your free stock here), then you can easily download the Robinhood Investing / Trading App in the marketplace.

Technology Requirements

Robinhood is available for iPhone and Apple Watch on the App Store. You can also download for Android on the Google Play Store. And Robinhood supports Chrome, Safari, Firefox and Edge for both PC's and Mac's.

Robinhood Review - Should You Open an Account?

Robinhood Pro's and Con's

We recommend Robinhood if you're a beginner or a buy/hold type of investor. The company is regulated by the SEC and the FINRA and allows you to earn interest on your unvested amounts through their cash management service. They have won numerous awards, including Broker's Choice Best App for Stock Trading for 2020.

  • Easy to Use - /10
  • Value for Price - /10
  • Customer Support - /10
  • Variety of Features - /10


  • User-Friendly Mobile App
  • Free Stock When You Signup
  • Trade Crypto
  • Trade Options
  • Regulated
  • SIPC Member
  • Commission Free Trades
  • Fractional Shares
  • Dividend Reinvestment


  • Limited Investment Choices
  • Charts Not Detailed – Use Trading View
  • No Forex
  • USA Only
  • No Online Chat Support

Robinhood Features

How to Buy Fractional Shares

Fractional Shares is a new concept that allows you to invest in ANY company while getting a fraction of the share. Choose how much you want to invest and Robinhood converts that amount to parts of a whole share (a fractional share).

This allows you to customize your portfolio with pieces of different companies to help diversify and reduce risk.

How to Day Trade with Robinhood

When you buy and then, sell the same stock within a single trading day, you've made a day trade. If you executive 4 or more trades within a 5 day period, you'll be considered a pattern day trader. If you plan to day trade like this, you'll need a minimum account balance of $25,000.

This is known as the PDT rule. It simply means that if you have less than $25,000, you are limited to three trades or less in a five day period. The $25,000 must be your cash + stocks + options to meet the threshold to become an unlimited day trader.

Trade Crypto with Robinhood

Buy and sell Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies 24/7 and commission-free with Robinhood Crypto.

Trade Options

An option is a contract between a buyer and a seller, and its value is derived from an underlying security. These contracts are part of a larger group of financial instruments called derivatives. On Robinhood, options contracts are traded on stocks and ETFs.

If you're looking to learn how to trade options, then, we recommend our instructor Danny Devan. Click Here for Details

Is Robinhood Safe?

Robinhood is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which protects members up to $500,000, including $250,000 for claims for cash.

Keep in mind that this does not include crypto protection. Crypto is not protected by FDIC, FINRA or SIPC. If you're comparing online brokerages, check out alternatives to Robinhood here.

Robinhood Fee Schedule

Robinhood charges $0 for trading called commission-free trading. That refers to the $0 commission for Robinhood's self-directed individual cash or margin brokerage accounts. This $0 fee includes trading stocks, trading ETF's and trading options via the app or the website.

Download their fee schedule report for 2020 here.

Extended Trading Hours

“Extended hours trading” means trading outside of “regular trading hours.” “Regular trading hours” generally means the time between 9:30 a.m. and 4:00 p.m. Eastern Standard Time.

Traditionally, the markets are open from 9:30 AM EST – 4 PM EST during normal business days. With extended-hours trading, you’ll be able to trade during pre-market and after-hours sessions.

  • Pre-Market opens 30 minutes earlier, starting at 9:00 AM EST
  • After-Hours trading continues for 2 hours, until 6:00 PM EST

That’s an extra two and a half hours of market access, every single day.

Here's the breakdown:

  • Pre-Market Hours: 9 AM to 9:30 AM EST
  • Regular Market Hours: 9:30 AM to 4 PM EST
  • After Hours: 4 PM to 6 PM EST

During the extended-hours session, the price displayed on a stock’s Detail page is the stock’s real-time price. Orders made outside market hours and extended hours trading are queued and fulfilled either at or near the beginning of extended hours trading or at or near market open, according to your instructions.

Frequently Asked Questions About Robinhood

How does Robinhood make money?

Robinhood generates income on uninvested cash that isn't swept to the Cash Management network of program banks, primarily by depositing this cash in interest-bearing bank accounts. Plus, they also make money when users upgrade Robinhood Gold.

Can you trade crypto with Robinhood?

Yes. Buy and sell Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies 24/7 and commission-free with Robinhood Crypto.

Is Robinhood safe?

Robinhood is regulated by the Securities and Exchange Commission (SEC) and has several safety measures in place to protect users' money and data. In addition, money on Robinhood is protected up to $500,000 for securities and $250,000 for cash claims, ensuring investors can trade with peace of mind. 

Can you trade penny stocks on Robinhood?

You cannot trade OTC penny stocks on RobinhoodRobinhood only has access to the NYSE and NASDAQ currently, and as such, you do not have access to 95% of penny stocks, since most are found on the OTC (because they do not meet the financial requirements to be listed on the “real” exchanges).

What is the free stock that Robinhood gives when you signup?

Robinhood has quickly reached 10,000,000 users by giving free stock just signing up. When you open a brokerage account, you get a free stock valued up to $200. You can refer your friends and family and get another free stock valued up to $200. Click here to claim your free stock.

How do I get in touch with Robinhood Customer Service?

You can contact Robinhood's customer service here.

Can I trade options inside Robinhood?

Yes. You can also trade options directly from your app. Here's how:

Tap the magnifying glass in the top right corner of your home page.
Search the stock you’d like to trade options for.
Tap the name of the stock you’re looking for.
Tap Trade in the bottom right corner of the stock’s Detail page.
Tap Trade Options.

How to I pay taxes or download my tax forms in Robinhood?

You'll always be able to login to your Robinhood account regardless if you close it to view your tax documents. Here's how:

Download the app and log in using your Robinhood username and password.
Tap the Account icon on the bottom right corner of your screen.
Tap Investing.
Scroll down and tap Account Statements or Tax Documents.

Can I trade bitcoin in Robinhood?

Your cryptocurrency assets aren’t part of your Robinhood Financial account. Your brokerage account is with Robinhood Financial LLC and allows trading of stocks, ETFs and options, while cryptocurrency trading is done through an account with Robinhood Crypto, LLC.

For these reasons, you can trade cryptocurrencies on Robinhood with a Cash, Instant, or Gold account. Your cryptocurrency assets are held in your Robinhood Crypto account, not your Robinhood Financial account, so they’re treated as non-marginable, with a maintenance requirement of 100%. This means your cryptocurrencies need to be backed entirely by cash, and can’t serve as collateral for equities positions.

How do I login to Robinhood?

You can login to Robinhood here.

When will my tax documents be ready?

All of your tax documents for 2020 will be ready in mid-February 2021. Keep in mind: you may not receive tax documents from us, but we’ll still let you know if you don’t have any.

Please wait until mid-February to file your taxes to avoid having to refile. By then, Robinhood will have finalized your Form 1099 tax documents.

How do I access my tax document?

You can access your consolidated Form 1099 in your mobile app:

Tap the Account icon in bottom right corner
Tap Statements & History
Tap Tax Documents.

What is Robinhood's Cash Management?

Cash Management is a feature offered through your brokerage account that lets you use Robinhood¹ to spend and earn interest on your cash. You’ll also get a debit card issued by Sutton Bank. You can use your debit card and routing and account numbers to buy groceries, pay bills, send checks, and more. Your cash is swept to our network of program banks where it starts earning 0.30% annual percentage yield (APY)³.

How much can you transfer into your Robinhood account?

You can transfer up to $50,000 per business day into your account. You'll receive instant $1,000 available while the settlement times will be up to 5 business days.

Can I setup automatic deposits into my Robinhood account?

You can set up automatic transfers into your Robinhood account on your mobile app:
Tap the Account icon in the bottom right corner.
Tap Transfers.
Tap Automatic Deposits.
Choose your schedule.
Weekly: We’ll initiate this deposit every Monday.
Twice Monthly: We’ll initiate this deposit on the 1st and 15th of every month.
Monthly: We’ll initiate this deposit on the 1st of every month.
Quarterly: We’ll initiate this deposit on the 1st of January, April, July, and October.
Enter the amount you want to deposit each time.

How do I signup with Robinhood?

The first step in signing up is to setup an account. First, navigate to Robinhood's signup page here. You'll enter your contact information and verify your identity. When you're ready to fund your account, you'll want to link your bank account to get a free stock valued up to $200. It usually takes 24 hours before they accept your application. Once they approve your application, then you can download the app and start trading.

Please bookmark this page to come back to it at anytime. I'll be updating this page with additional training on how to get started with Robinhood. If you know someone who needs this info, please share this with them. We rely on word of mouth marketing to advertise our business.


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  1. John November 13, 2020
    • Kit Elliott November 13, 2020
  2. Adam Reed December 26, 2020

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Webull Allows All Stocks to Be Traded

We Both Get Two Free Stock when You Open a Webull Account.