Is Robinhood Gold Worth It?

Is Robinhood Gold Worth It?

Posted  76 Views updated 1 month ago
Image

Robinhood is a different type of brokerage. The technology-driven company cuts out overhead by eliminating storefront locations and full-service features, allowing customers to manage their stock portfolios with their phones. The end result is a useful stock trading app that provides all of the basics without any costly extras.

While people can trade for free with the app, some users choose to upgrade to Robinhood Gold, an advanced product offered by Robinhood. Robinhood Gold is available for as low as $10 a month and offers additional features compared to the standard product.

Image

What Does Robinhood Gold Offer?

Robinhood has made a name for itself by offering a wide selection of ETFs and stocks. Investors buy and trade the ETFs and stocks without paying fees or commissions. Those who upgrade to Robinhood Gold can enjoy even more features, but they still won’t have to pay commissions or fees on trades.

The premium features include early and late trading. Users can start trading 30 minutes before the market opens, and they can continue to trade two hours after it closes.

Margin trading is also available with Robinhood Gold. Users can borrow up to twice the amount of money available in the account as long as they have a balance of at least $2,000.

Robinhood Gold members can also avoid waiting periods for ACH transfers and reinvestments. These users get instant access to funds so they can invest right away.

Who Is Robinhood Gold For?

Robinhood Gold is appealing to young investors who want more access to advanced investing methods. These investors make small investments, so paying commission fees is out of the question. Those fees can add up and hurt small investors’ portfolios, but Robinhood Gold charges a flat monthly rate, eliminating that concern.

It’s appealing to people who make a large number of stock or ETF trades since they won’t have to pay commissions on every trade. In addition, mobile users typically like Robinhood Gold since they can use the app easily on the go.

It’s also attractive to investors who want to play with other people’s money. Margin trading is relatively easy with this app, so people can get more out of their investments.

Benefits of Robinhood Gold

Robinhood Gold comes with numerous benefits. The most notable of these benefits are the completely commission and fee-free trades. As mentioned earlier, Robinhood Gold charges just a flat, monthly rate fee of $10.

Robinhood also shines when it comes to account minimums. Many people aren’t able to trade with other brokerages because they don’t have the minimum to open an account. Robinhood doesn’t have account minimums; however, users need to have at least $2,000 deposited to work with margin accounts.

Robinhood Gold is also a breeze to use. Users can sign up and fund their accounts in minutes, and they can start trading quickly and easily. The streamlined interface means that everything people need is just a click away. They can click on a stock and buy it just like that. Then they can go back to the app to monitor the stock. They can also view graphs and can see how it is performing in real time.

Problems with Robinhood Gold

Robinhood Gold offers margin trading which comes at a risk to the user. While borrowing money to trade is enticing, it is possible to lose more money than what is originally invested. Borrowers could end up owing Robinhood Gold thousands of dollars if they are unlucky with their trades. Skilled traders can do well with margin trading, but those who are new to trading might not want to take on the risk.

Robinhood Gold also has a lack of resources available. This platform isn’t meant for research, so traders have to conduct that elsewhere. That means traders don’t have reports, analysis software, or educational resources on the app.

It’s also worth noting that Robinhood doesn’t have a feature for automated broker transfers. Investors who already have accounts set up with another platform cannot automate the transfer process. Instead, they have to conduct the transfer via the Automated Customer Account Transfer Service (ACATS).

Is Robinhood Gold the Right Choice?

People who want to open margin accounts can benefit from Robinhood Gold. Also, the instant access to money and extended trading hours make it an attractive option for traders. Those who like the idea of commission-free trades but want a few more bells and whistles will likely be pleased with Robinhood Gold.

However, those who aren’t interested in margin trading and just need basic features might find that the standard Robinhood app is enough. They can still trade with ease, but they won’t have access to extended trading hours or the other nifty features.

It’s a good idea to give Robinhood a test run, and you can decide to upgrade to Robinhood Gold later on if you think you are missing out on features.


infoclear

Your reaction?

0
LOL
0
LOVED
0
PURE
0
AW
0
FUNNY
0
BAD!
0
EEW
0
OMG!
0
ANGRY
0 Comments