Should You Buy Stocks on Robinhood?
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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.
2026 Award Winner
= Best
= Excellent
= Good
= Fair
= PoorA top pick for beginners, Robinhood combines $0 commission trades, an easy-to-use app, and a rare retirement deposit match.
$0 on trades of stocks, ETFs and their options. Other fees may apply.
$0
Receive eligible dividend payments up to one month before the official payment date.
On Robinhood's Secure Website.
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.
Our Research Expert
Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.
Motley Fool Stock Disclosures
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Robinhood disclosure
Margin borrowing increases your level of market risk, as a result it has the potential to magnify both your gains and losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. Regardless of the underlying value of the securities you purchased, you must repay your margin loan. Robinhood Financial can change its maintenance margin requirements at any time without prior notice. If the equity in your account falls below the minimum maintenance requirements (varies according to the security), you'll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood Financial may be forced to sell some or all of your securities, with or without your prior approval. For more information please see Robinhood Financial's Margin Disclosure Statement, Margin Agreement and FINRA Investor Information.
Margin trading involves risk and may not be suitable for all investors. Borrowing on margin increases your level of market risk and can amplify both gains and losses.
Robinhood Financial may change maintenance margin requirements at any time without prior notice. If the equity in your account falls below minimum maintenance requirements, you may need to deposit additional cash or collateral. If those requirements are not met, Robinhood Financial may sell securities in your account without prior approval.
The 3% matching on annual contributions requires a subscription with Robinhood Gold ($5/mo) and customers must stay subscribed to Gold for 1 year from the date of the first eligible deposit to keep the full Gold match. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. Match rate subject to change. Non-Gold customers receive a 1% match. Offer only applies to self-directed IRAs. For more information refer to the IRA Match FAQ.
You must have compensation (wage income) in order to contribute to an IRA. Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.
The Robinhood IRA is available to any U.S. customer with a Robinhood brokerage account in good standing.
Robinhood Strategies charges an annual management fee of 0.25% on the net portfolio value of each managed account. Eligible Robinhood Gold subscribers pay no management fees on the portion of their managed account net portfolio value that exceeds $100,000, thereby limiting the annual management fee to $250. Other fees apply.
All investments involve risk and loss of principal is possible.
Brokerage services are offered through Robinhood Financial LLC, ("RHF") a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, ("RHS") a registered broker dealer (member SIPC).
RHF and RHS are not banks. All are separate but affiliated entities. Securities offered by RHF are not FDIC insured and involve risk, including possible loss of principal.
Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC.
Portfolio management of managed accounts by Robinhood Asset Management, LLC ("Robinhood Strategies"), an SEC-registered investment advisor.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before trading options.
Cryptocurrency trading is offered through Robinhood Crypto, LLC (NMLS ID 1702840). Trading and holding digital assets involves significant risk, including the risk of substantial loss. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.
*Trading and owning digital assets involves significant risk, including the risk of substantial loss. Cryptocurrency trading is offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the
New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.
** Network fees may apply. Availability may be subject to regulatory approval in certain states.