Robinhood
The simplest way to start investing. Beautiful mobile app and zero commissions, but limited tools and research hold it back for serious investors.
Score Breakdown
Six dimensions assessed across a 15-year investment horizon.
Protection & Custody
Investor Protection
SIPC
$500,000
Standard SIPC coverage only
Track Record
13+
Years in operation since 2013
Total Cost of Ownership
“Free trading with hidden costs in execution”
Commission
$0
Spread
Wider spreads due to PFOF routing
Inactivity Fee
$0
Withdrawal Fee
$0 (ACH) / $25 (wire)
FX Conversion
N/A
Est. Monthly Cost
$5–$15/month in execution quality cost
Order Flow & Execution
Significant PFOF revenue driver
Robinhood routes ~50% of equity orders to Citadel and other market makers. This generates substantial revenue but may result in less favorable execution prices.
Pros & Cons
Pros
- Beautiful, intuitive mobile app
- $0 commissions on all trades
- Fractional shares starting at $1
- Instant deposits up to $50,000 (Gold)
Cons
- Very limited research and analysis tools
- No mutual funds or bonds
- Customer service primarily via chat/email
- History of platform outages during volatility
The simplest way to start investing. Beautiful mobile app and zero commissions, but limited tools and research hold it back for serious investors.