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How do you use Robinhood effectively?

Andrew Lokenauth
Financial Literacy Expert
Andrew Lokenauth is a Finance Expert who has over 15 years of experience working on Wall St. and in Tech & Start-ups. Andrew helps management teams translate their financials into actionable business decisions. He has held positions at Goldman Sachs, Citi, and JPMorgan Asset Management. He is the founder of Fluent in Finance, a firm that provides resources to help others learn to build wealth, understand the importance of investing, create a healthy budget, strategize debt pay-off, develop a retirement roadmap, and create a personalized investing plan. His insights have been quoted in Forbes, TIME, Business Insider, Nasdaq, Yahoo Finance, BankRate, and U.S. News. Andrew has a Bachelor of Business Administration Degree (BBA), Accounting and Finance from Pace University.

Andrew Lokenauth

Financial Literacy Expert

Expert Answer

Take some time to educate yourself about the trades you're making, so you reduce your risk of losing money. In general, it's a good idea to start investing a small amount of money, so you lower your risk of losing money as a beginner. Try to split your money between 5-10 different investments, too—that way, you reduce your risk of losing all your money since you won't have all your eggs in one basket.

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Question

What is the downside to Robinhood?

Andrew Lokenauth
Financial Literacy Expert
Andrew Lokenauth is a Finance Expert who has over 15 years of experience working on Wall St. and in Tech & Start-ups. Andrew helps management teams translate their financials into actionable business decisions. He has held positions at Goldman Sachs, Citi, and JPMorgan Asset Management. He is the founder of Fluent in Finance, a firm that provides resources to help others learn to build wealth, understand the importance of investing, create a healthy budget, strategize debt pay-off, develop a retirement roadmap, and create a personalized investing plan. His insights have been quoted in Forbes, TIME, Business Insider, Nasdaq, Yahoo Finance, BankRate, and U.S. News. Andrew has a Bachelor of Business Administration Degree (BBA), Accounting and Finance from Pace University.

Andrew Lokenauth

Financial Literacy Expert

Expert Answer

In the past, Robinhood had a lot of publicity issues because they would sell trades to brokerages—so, nothing is really free. The reason they could offer a commission for trading was because they would make money by selling information on their clients' trades to big hedges funds. If you do use Robin Hood, keep in mind that your information could be sold or shared with a third party.

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Step 3: selling the stock - it states "The money will return to your account as withdrawable funds within a few days" in those few days are we really waiting for someone to buy the stock I sold.

Donagan

Top Answerer

No. The stock has sold, but it takes a while for your bank to receive that money and make it available for you to use.

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How can I invest in index funds?

Donagan

Top Answerer

An index fund is a type of mutual fund. You can invest in them through platforms like Robinhood, often as index exchange-traded funds (ETFs), or directly through mutual fund companies. Many major mutual fund companies offer index funds, sometimes without sales commissions.

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