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Robinhood Review: A Beginner-Friendly Brokerage With an IRA Match

Review Updated
Brooklyn Sprunger
Author: Brooklyn Sprunger
Brooklyn Sprunger
Brooklyn Sprunger
Content Manager

Brooklyn Sprunger is a full-time Content Manager and Personal Finance Writer at Motley Fool Money, where she oversees product reviews and ratings while also writing about credit cards, bank accounts, investing, auto insurance, and other personal finance topics. She has worked in financial content since 2018, including more than four years at The Motley Fool. When she’s not writing or editing, Brooklyn is likely hiking and watching the Tennessee Vols.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation.

Investing doesn't need to be complicated to be effective. But a lot of brokerages still make it feel that way -- cluttered platforms, unnecessary fees, and tools that assume you already know what you're doing.

Robinhood takes a different approach. It strips investing down to the essentials: low costs, a simple app, and just enough features to help beginners get started without feeling overwhelmed. It's one of the easiest ways to buy your first stock, start a portfolio with just a few dollars, or begin saving for retirement.

I'll walk through what Robinhood does well, where it falls short, and who it actually makes sense for so you can decide if it's the right fit for how you want to invest.

Robinhood
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Robinhood

Robinhood

Our Rating:

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Bottom Line

A top pick for beginners, Robinhood combines $0 commission trades, an easy-to-use app, and a rare retirement deposit match.

Fees:

$0 for stocks, ETFs, and options

Account Minimum:

$0

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At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

What Robinhood is (and isn't)

Robinhood is a self-directed brokerage built around simplicity. You open your account, you choose your investments, and you place the trades. Robinhood doesn't offer financial advice or portfolio management.

What it does offer is:

  • A clean, intuitive mobile app
  • The ability to invest with very little money
  • Low fees that won't eat into small balances

What it doesn't offer:

  • Mutual funds
  • Deep research tools
  • Personalized guidance

What I like about Robinhood

It's genuinely beginner-friendly

If this is your first brokerage account, Robinhood is hard to beat. The app is easy to navigate, buying and selling stocks takes seconds, and nothing feels buried or confusing.

Fractional shares matter here. Being able to invest $10 instead of $300 removes a huge mental barrier. You don't need to wait until you "have enough money" to start.

The IRA match is a real advantage

Robinhood offers a 1% match on IRA contributions, with a 3% match for Robinhood Gold members. Unlike short-term sign-up bonuses, this Robinhood promotion rewards consistent, long-term saving.

Most brokerages don't offer any match on retirement contributions. Over time, that extra 1%-3% compounds, especially if you're contributing consistently. It's one of the few features that provides immediate, tangible value for long-term savers.

Important fine print to know:

  • The 3% match requires a paid Robinhood Gold subscription
  • You must keep the matched funds in the account for at least five years

If you're focused on long-term retirement savings, this perk alone can justify choosing Robinhood.

Low costs keeps your portfolios efficient

Robinhood's core platform is free:

  • No commissions on stocks, ETFs, or options
  • No account minimums
  • No required subscriptions

There are fees for certain actions, like instant transfers, wire transfers, and outgoing account transfers, but most buy-and-hold investors won't run into them often.

For smaller portfolios especially, low fees matter more than fancy tools.

Downsides to consider

No mutual funds

Robinhood doesn't offer mutual funds. If your investing strategy relies on them, this won't be the right platform.

That said, you can still build a diversified portfolio using exchange-traded funds (ETFs), which serve a similar purpose for many investors. For beginners, ETFs often make more sense anyway.

Limited research tools

Robinhood isn't built for deep analysis. You'll get basic company info, charts, and news, but not advanced screeners, analyst reports, or in-depth portfolio tools.

If you enjoy researching investments or want everything in one place, you may find Robinhood limiting. Many users pair it with external research and use Robinhood strictly for execution.

The design can encourage overtrading

Robinhood's app is fast and visually engaging. That's helpful, but it can also make frequent trading feel tempting.

If you're prone to reacting to short-term market moves, this is something to be aware of. Robinhood works best for investors with a long-term plan who can ignore daily noise.

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.

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Managing your finances under one roof $0 for stocks, $0 for options contracts
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Low-cost investing with a full-featured platform $0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
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5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Full-service investing at every experience level $0 commission for online U.S. stock and ETFs*. No account fees****.
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Fees and costs

Most investors will pay little to nothing to use Robinhood.

  • Account opening: $0
  • Stock & ETF trades: $0
  • Options contracts: $0.04 per contract
  • Instant transfers: Up to 1.75% (max $150)
  • Wire transfers: $25
  • Outgoing ACATS transfers: $100

Regulatory fees from FINRA apply to all brokerages and are minimal.

If you're buying and holding, costs stay very low.

Who Robinhood is best for

Robinhood is a strong fit if you:

  • Are new to investing
  • Want a simple, mobile-first experience
  • Plan to invest small amounts consistently
  • Care about keeping fees low
  • Like the idea of an IRA match

Who should look elsewhere

You may want another brokerage if you:

  • Want mutual funds
  • Rely heavily on in-platform research
  • Prefer a more traditional, full-featured desktop experience
  • Trade frequently or use complex strategies

The bottom line

Robinhood isn't trying to be the most advanced brokerage, and that's exactly why it works.

It removes friction, lowers costs, and makes investing accessible for people who just want to get started and stay consistent. If that's you, Robinhood does its job well.

If you want a simple, low-cost way to start investing, Robinhood is worth opening an account. You can get set up in minutes and start investing with as little as $1. Apply today and start your investing journey.

FAQs

  • Robinhood doesn't charge commissions, but it does charge fees for options and some other complex trades. It also charges some very miniscule trading fees. These fees are actually charged by the Financial Industry Regulatory Authority (FINRA) and passed along by Robinhood to its customers. FINRA charges all brokerages these fees, so they can be hard to avoid.

  • While Robinhood has many beginner-friendly features, it doesn't offer mutual or index funds. These funds allow beginners to purchase a curated package of stocks rather than individually creating a portfolio.