Technology-driven trading app lets anyone trade stocks

If you’ve always wanted to get into the stock market but have been held back by daunting account minimums or brokerage fees, a new technology-driven trading app is looking to meet your needs.

[Image Source: Robinhood]

Robinhood is an American stock trading IOS and Android app that works on IOS and Android devices. Most notably, it requires no account minimum and does not charge any fees. Right now they are even running a promotion where if you sign up you can get free stock from Facebook, Apple, Microsoft, Ford, Sprint or Verizon.

As an application, this company focuses on cutting out the middleman and making technology the center of stock trading. The company wanted to make stock trading accessible to the common man who just wants to invest money or have fun in the market. If that sounds a little too good to be true, it’s not. The app is driven by millennials’ love of mobile technology, and its simple design takes the confusion out of stock trading. You can watch the video below to know more about it.

By comparing Robinhood to its closest competitor, E-Trade, you can see how one might be more inclined to trade with Robinhood. E-commerce fees $9.99 per exchange while Robinhood does not charge anything. For ETFs, e-commerce fees $9.99 again and Robinhood loads, you guessed it, nothing. The difference is what you can do with Robinhood and some of the most diverse trading apps.

Robinhood does not allow mutual fund purchases and you cannot buy options. For the person looking to get their feet wet, these non-options may not appeal to you.

The mobile-only trading app is geared towards the engineer, the regular guy, anyone on the go, who wants to get involved in trading with fairly low overhead and fairly low constraints. Along the same lines as Bitcoin brought a decentralized platform to the currency many years ago, Robinhood poses a similar system to the stock trading industry. It’s a technology-based stock platform that doesn’t need thousands of physical locations or expensive staff.

Of course, this tech-focused app won’t be for everyone. To get started, you need to use it on a mobile device. You also cannot day trade unless you have a minimum account of $25,000. However, if you just want to play with some of your stash money with low overhead and liability, Robinhood might be for you. It’s just another way technology is drastically changing the way things have been done for many years. Through engineering and ingenuity, the barrier to many platforms can be broken down.

If you’re interested in Robinhood, you can find out more here. If you want to join, there are no fees, just an initial deposit of any amount into a bank account. Did I mention you get free stock just for signing up? If you want to register, here is the link for it.

Sources: The Motley Fool, Forbes

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