Should You Buy Stocks on Robinhood?

Robinhood has built a reputation as one of the most beginner-friendly investment platforms out there. With no-commission trades, fractional share investing, and an IRA match program, it's easy to see why the app has millions of users.

Having used it myself, I also love the app's sleek, intuitive interface and no-nonsense tools.

It isn't perfect -- but it's a great way to jump into the world of investing. Here's what to know about Robinhood so you can decide if it's right for you.

What to like about Robinhood

Beginner-friendly interface and fractional shares

Robinhood's clean design makes it easy for new investors to open an account, explore the app, and execute their first trades.

Buying and selling stock takes just a few taps, and fractional share investing allows you to invest as little as $1 in most stocks. That's a super low barrier to entry, making Robinhood one of the most accessible options out there.

1% to 3% IRA match

Another one of Robinhood's standout features is its retirement match program. Investors who contribute to a self-directed Robinhood IRA automatically get a 1% match from the platform.

Robinhood Gold members who pay a small fee -- $5 per month or $50 per year -- can boost that to 3%.

That's an easy way to get rewarded for investing for retirement. Robinhood is great for short-term trading, but it's nice to know it's helping users save for the long run, too.

Extremely low cost

Robinhood is also one of the most affordable brokerages you'll find. It comes with no commission fees on stocks, ETFs, and stock or ETF options, plus no fees to access the basic version of the platform.

It does charge fees for other transactions, but they're low. It also costs nothing to move money into your account, although money taken out will be hit with a 1.75% fee for instant transfers (max $150) or a $25 fee for wire transfers.

Overall, though, Robinhood is much cheaper than most competitors. If you want an inexpensive, beginner-friendly way to start investing, this is it.

Ready to start exploring the Robinhood platform? Check out our full review now and open an account in minutes.

What could be improved

No access to bonds or mutual funds

With Robinhood, you can buy stocks, exchange-traded funds (ETFs), cryptocurrency, and more -- but not bonds or mutual funds.

Mutual funds are prepackaged groupings of stocks that let you invest in a bunch of different companies at once. ETFs are similar, only they usually track an index (like the S&P 500) instead of being actively managed.

If you want to invest in mutual funds specifically, you'll want to look elsewhere.

Trading can feel like a game

Robinhood's sleek interface has a downside: It could encourage risky behavior.

Push notifications, real-time updates, and colorful displays can make trading feel more like a game than an actual investment platform. It might be easy to forget that you're investing real money.

You could also be tempted to trade more often, which often works against long-term investing success. If you want a platform that lends itself to slow, steady growth, you'll probably want to find something more traditional.

How to know if it's right for you

Robinhood is great as an inexpensive, beginner-friendly way to start investing. Its retirement match also makes it a strong option for those focused on long-term wealth building.

If you want access to mutual funds or are looking for a more traditional platform, you'll want to look elsewhere. Otherwise, though, Robinhood is a great starting point.

Check out our list of the best stock brokers for beginners for more great options.