7 Robinhood Features You're Missing Out On

by Maurie Backman | Published on Sept. 30, 2021

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If you're not using Robinhood, you're losing out on these cool features that could take your investing career to the next level.

Robinhood is probably one of the more well-recognized names in brokerage accounts right now, and one of its best features is that it offers zero-fee trades. These days, though, that's not actually a huge selling point. Many brokerages don't charge fees on a per-trade basis.

But no-fee trades aren't the only good thing about Robinhood. Here are some of the lesser-known features that make Robinhood great to invest with.

1. No investing minimums

Investors with very little money can open a Robinhood account and avoid fees. Robinhood doesn't have a minimum balance requirement, so you can start investing in your account right away.

2. The option to purchase cryptocurrency

Not all brokerages let you buy cryptocurrency, and while investing in it is a risky prospect, you may want the option nonetheless. Robinhood will allow you to buy digital currencies if you choose to go that route.

3. The ability to buy fractional shares

Some stocks cost hundreds or even thousands of dollars for a single share. With Robinhood, you can still own part of those companies even if you don't have a lot of money. That's because Robinhood allows you to buy fractional shares, where you purchase a portion of a share of stock if you can't swing a full share. Fractional investing makes it easier to build a diverse portfolio, and that way, a lack of funds won't stop you from owning a piece of the companies you want.

4. Free ATM withdrawals

The money in your Robinhood account may be more accessible to you than you'd think. You can withdraw cash from your account at no cost at more than 75,000 ATMs within Robinhood's network.

5. The opportunity to trade on margin at a low cost

Upgrading your Robinhood account for $5 per month will give you the option to trade on margin. That's another way of saying you can borrow money to trade with. If you're a seasoned investor, this is a good thing. But there are risks involved with trading on margin, so you'll also need to be careful if you plan to use this feature.

6. Automatic dividend reinvestment

Some companies share their proceeds with investors in the form of dividend payments. When you're entitled to dividends, you can collect that money and spend it if you'd like. Robinhood, however, lets you set up your account to automatically reinvest your dividends back into the stock they came from, allowing you to grow your portfolio.

7. Recurring investments

Just as you'll often hear that automating your savings can help you grow wealth, so too can putting your investments on autopilot help you stay on track for meeting your goals. Robinhood will allow you to set up recurring investments. If you want to buy $50 worth of a specific stock every week, you can make that happen without having to think about it.

If you're looking to open a brokerage account, there are numerous options to choose from. But these features make Robinhood a great home for your investment dollars.

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