All Share (J203) = 89 062
Rand / Dollar = 18.40
Rand / Pound = 23.22
Rand / Euro = 19.23
Gold (usd/oz) = 2 928.91
Platinum (usd/oz) = 989.30
Brent (usd/barrel) = 75.90
Trade +10,000 CFDs with Tight Raw Spreads. – Trade Now!

Robinhood Review – Unbiased Pros & Cons Revealed

Robinhood Review South Africa
Overall, Robinhood is very competitive in terms of its trading fees and spreads. Their spreads are low compared to other regulated brokers, and there are no hidden trading fees. Robinhood is headquartered in Menlo Park, California, United States.

 

Robinhood at a glance

🔍 Brokers NameRobinhood
📍 HeadquarteredUnited States
📅 Year Founded2013
🏛 Regulating AuthoritiesFINRA (Financial Industry Regulatory Authority), U.S. Securities and Exchange Commission (SEC)
🌐 Countries not accepted for tradeTraders from Unites States only
📒 Demo AccountNo
☪️️ Islamic Account (Swap Free)No
💻 Institutional AccountsYes
💻 Managed AccountsYes
📊 Maximum Leverage1:2
💰 Minimum DepositNone
💳 Deposit OptionsDomestic and international bank wire
💳 Withdrawal OptionsDomestic and international bank wire
📉 Platform TypesRobinhood proprietary platform
📲 OS CompatibilityPC and Mac OS, mobile for Android and IOS
📊 Tradable AssetsForex, stock index CFDs and commodity CFDs
🌐 Languages supportedEnglish only
☎ Customer Service24 hours /5 days a week

 

Min Deposit

USD 0

Regulators

FINRA

Trading Platform

Proprietary Platform

Crypto

Yes

Total Pairs

0

Islamic Account

No

Trading Fees

Low

Account Activation

24 Hours

 

Robinhood Review Revealed – A Key 22 – Point Quick Overview

  1. Robinhood at a glance
  2. Who is Robinhood?
  3. Robinhood Safe or a Scam?
  4. Robinhood Sign-up Bonus
  5. Robinhood Referral Bonus
  6. Robinhood Account Types
  7. Robinhood Account Features
  8. How to set up a Robinhood Trading Account – Step by Step
  9. Robinhood Demo Account
  10. Robinhood Islamic Account
  11. Robinhood Fees and Spreads
  12. Robinhood Deposit fees and deposit methods
  13. Step-by-step guide to depositing the Robinhood minimum amount
  14. Robinhood Trading Platforms
  15. Robinhood vs Rakuten Securities vs Questrade
  16. Robinhood’s Top Countries by Similar Web
  17. Robinhood’s Current Popularity Trend
  18. Robinhood Pros and Cons
  19. Robinhood Customer Reviews
  20. Final Thoughts
  21. Disclaimer
  22. Frequently Asked Questions

 

Who is Robinhood?

 

According to research in South Africa, Robinhood is a well-regulated exchange broker based in the United States and has been operating since 2013. The broker offers access to stocks, ETFs, options, and cryptos. Robinhood differentiates itself by offering commission-free trading on stocks, ETFs, and options. In turn, the broker makes an income through rebates from market makers and trading venues.

 

Robinhood Overview

 

Robinhood Securities, which acts as the clearing broker, developed a routing system to incentivize the market makers Robinhood has relationships with to compete for order flow based on the amount of price improvement obtained. This algorithm, known as the smart order router, prioritizes sending client orders to a market maker that is likely to give you the best execution, based on historical performance. Rebates are not considered when your brokerage orders are routed.

 

Similarly, Robinhood Crypto has relationships with several cryptocurrency trading venues that allow you to receive competitive prices. Robinhood Crypto receives volume rebates from trading venues. Rebates are not considered when your crypto orders are routed.

 

Robinhood Overview

 

Robinhood provides three live account options. These consist of the Standard account, Gold account, and Cash account. Robinhood does not offer an Islamic account for traders of the Muslim faith, nor is a free demo account available to prospective traders. This is rather a drawback, as many prospective traders today rely on the use of a demo account to test broker offerings in a risk-free way before risking real money on a live account.

 

Client deposits are protected for up to $500,000 for securities and $250,000 for cash claims due to the broker’s regulation with the SIPC. Added to this, Robinhood is a securities brokerage which means that it is regulated by the Securities and Exchange Commission (SEC).

 

Robinhood Overview

 

As part of this extensive regulation, margin trading is limited to the gold account only, with an exceptionally low ratio available of 1:2. To access margin trading on the gold account, traders must maintain a minimum account balance of $2000. Overall, Robinhood is a secure online stock broker that offers extremely competitive and transparent pricing, coupled with advanced features and excellent customer support.

 

Robinhood Overview

 

Min Deposit

USD 0

Regulators

FINRA

Trading Platform

Proprietary Platform

Crypto

Yes

Total Pairs

0

Islamic Account

No

Trading Fees

Low

Account Activation

24 Hours

 

Robinhood Safe or a Scam?

 

Regulation is an imperative factor to consider when evaluating brokers as it will indicate whether client funds are, and can be, kept secure at all times and that in the event that a brokerage is declared insolvent, that eligible clients can be compensated.

 

Robinhood is in accordance with the following:

▶ A member of the Financial Industry Regulatory Authority, or FINRA in providing securities trading to self-directed customers through Robinhood Financial.

▶ Robinhood Financial LLC is a member of the Securities Investor Protection Corporation, or SIPC, which provides eligible compensation of up to $500,000, or $250,000 cash claims.

▶ Robinhood International, Ltd., a subsidiary of Robinhood, is authorized and regulated by the Financial Conduct Authority, or FCA, to provide brokerage services in the UK.

 

Robinhood Sign-up Bonus

 

Traders who choose to register for a real account with Robinhood will not receive a welcome bonus in the traditional sense. However, new traders will receive a bonus in the form of free stocks/cash value when opening an account with Robinhood.

 

🎉
Sign Up Bonus$10
Referral Bonusup to $1,500 gift stocks each calendar year
Affiliate Program

 

Robinhood Referral Bonus

 

Loyal customers of Robinhood can earn attractive commissions through the broker’s partnership program. Also referred to as referral bonuses, these allow existing traders of a given broker to earn greater rewards through referring a friend to a broker. The trader is compensated by the broker when this referral results in the friend signing up for a real account.

 

🎉 Robinhood Referral BonusReceive up to $1,500 in gift stocks each calendar year,

 

This commission from Robinhood is awarded in the form of free stock for each new referral that a client makes to the broker.

 

Robinhood Affiliate Program

 

Robinhood Affiliate Program

 

Join the Robinhood affiliate program to monetize your content and connect with the broader Robinhood community. Attend exclusive events, Earn special offers throughout the year, Get beta testing access, and much more.

 

Robinhood Affiliate Program

 

Robinhood Account Types

 

Robinhood provides three live account options. These consist of the Instant account, Gold account and Cash account. Robinhood does not offer an Islamic account for traders of the Muslim faith, nor is a free demo account available to prospective traders.

 

🌐 Robinhood Instant Account
🌐 Robinhood Gold Account
🌐 Robinhood Cash Account

 

To apply for a Robinhood account, you will need to meet the following requirements:

▶ Be 18 years or older.

▶ Have a valid Social Security Number (not a Taxpayer Identification Number).

▶ Have a legal U.S. residential address within the 50 states or Puerto Rico (we may make exceptions for active U.S. military personnel stationed abroad).

▶ Be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa.

 

Robinhood Account Features

 

Robinhood Account Features

 

Robinhood Instant Account

 

You’ll have access to Instant Deposits (up to $1,000) and extended-hours trading. You’ll also have the ability to trade on unsettled funds, which means you won’t have to wait for your funds to process when you sell securities. And if you’re approved for options trading, you will be able to enter options trades that require a margin account. But you will not have the option to purchase securities on credit (what’s traditionally called “margin investing”) with an Instant account. can transfer up to $50,000 per business day into their Robinhood Instant Account and enjoy having no account fees.

 

▶ Access to Instant Deposits (up to $1,000)
▶ Ability to trade on unsettled funds

 

It is worth noting that Standard Account holders are limited to no more than three-day trades in a five-trading day period unless they have at least $25,000 of equity in their Standard or Gold account at the end of the previous day.

 

Robinhood Gold Account

 

The Gold Account is Robinhood’s premium account. Added benefits on the Gold Account include extended trading hours, more instant deposits, and access to margin. As a margin account, users will have to maintain a minimum balance of $2000.The Gold Account also provides access to more in-depth research tools and more buying power.

 

▶ More buying power through margin investing
▶ Larger instant deposits
▶ Gold account gives customers access to funds before they’ve settled
▶ A Gold membership costs $5/month.

 

Robinhood Cash Account

 

The Cash Account from Robinhood allows for commission-free trading on equities as well as access to instant deposits and settlements. You can also downgrade to a Cash Account from a Gold Account, but you will lose all the premium features.

 

Robinhood Cash Account

 

With a cash account, deposits must clear before they are available to invest. This may take up to 5 business days but depends on your method of deposit and deposit history at Robinhood.

 

How to set up a Robinhood Trading Account – Step by Step

 

Opening a Robinhood account will consist of the following steps:

 

🟢 Step 1 – Navigate to the Robinhood website and click on ‘Start Trading”

 

Navigate to the account registration area on the Robinhood website. This can be accessed by clicking on the Sign-up button at the top of the landing page.

 

How to set up a Robinhood Trading Account Step 1

 

🟢 Step 2 – Fill out the Robinhood account registration form 

 

Fill out the short online registration form to request a live trading account. You will need to provide your name, last name, email, and password.

 

How to set up a Robinhood Trading Account Step 2

 

🟢 Step 3 – Verify your identity

 

the next in setting up a Robinhood account requires traders to verify their identity by providing their social security number, date of birth, and country of residence.

 

How to set up a Robinhood Trading Account Step 3

 

🟢 Step 4 – Provide your investment experience

 

Provide your investment experience by selecting the type of trading experience you have.

 

How to set up a Robinhood Trading Account Step 4

 

🟢 Step 5 – Select the option for commission-free options trading

 

Traders can select the commission-free options trading by simply selecting yes or no.

 

How to set up a Robinhood Trading Account Step 5

 

🟢 Step 6 – Employment Information

 

The next step requires traders to indicate their employment status for regulation purposes.

 

How to set up a Robinhood Trading Account Step 6

 

🟢 Step 7 – Indicate shareholder status of trader or any family member holding a 10% share in a publicly traded company

 

Robinhood is required by law or industry regulations to collect this information to help prevent insider trading.

 

How to set up a Robinhood Trading Account Step 7

 

🟢 Step 8 – Read the Robinhood terms and conditions, and submit the application for approval.

 

After reviewing the Robinhood agreement, click submit for account application approval.

 

How to set up a Robinhood Trading Account Step 8

 

🟢 Step 9 – Access the Robinhood trading dashboard

 

How to set up a Robinhood Trading Account Step 9

 

In the coming days, you will receive an email either confirming your application’s been approved or asking for a bit more information. If Robinhood requests a document to verify your identity, the accounts department will include instructions for uploading your documents securely. Clients should allow five to seven days to review the materials and open their account.

 

Robinhood requests personal information, including financial and tax identification information, to comply with U.S. government laws and FINRA rules. Robinhood will request personal information from both new customers and long-standing customers. Robinhood complies with an SEC customer identification rule of the USA Patriot Act of 2001.

 

This rule requires Robinhood to put procedures in place to verify the identity of any person seeking to open an account and to maintain records of their information. Robinhood must also determine whether a customer appears on any lists of terrorist organizations provided to broker-dealers by any government agency.

 

Robinhood Demo Account

 

Unfortunately, Robinhood does not provide a free demo account to prospective traders, which is a significant drawback on the part of the broker. A forex demo account is also referred to as a practice account, which is used for practicing trading or to test a new trading strategy without any risk to actual money.

 

No demo account on offer

 

Apart from allowing prospective clients to learn more about the available trading conditions before investing real money, demo accounts are also useful tools for experienced and existing clients who may wish to test out new strategies in a risk-free environment before applying to the live markets. As such, this lack of a demo account presents a real drawback to both new and existing clients of Robinhood.

 

Robinhood Islamic Account

 

Robinhood does not offer an Islamic Account to traders of the Muslim faith. In Forex trading, an Islamic account fulfills a significant role for such traders, as described below. Also known as ‘no swap accounts’, Islamic trading accounts allow Muslims to engage in online forex trading in compliance with Sharia law.

 

With 25% of the world’s population practicing the Islamic faith, Islamic forex trading has continued to gain popularity worldwide. Essentially, an Islamic forex trading account charges no swap or rollover interest on positions held overnight in the forex market. An administration fee is, however, charged on some accounts to open positions.

 

Robinhood Fees and Spreads

 

As a stockbroker, Robinhood does not have a spread list. Instead, Robinhood offers trading of US stocks, options, and cryptocurrencies that is free of commissions. This makes Robinhood one of the most affordable brokers with which to trade in the industry.

 

Overnight Fees
Inactivity Fees
Deposit Fees
Withdrawal Fees $25

 

Robinhood Deposit fees and deposit methods

 

Robinhood offers only one method for making deposits, namely bank wire transfers. Unfortunately, this is a limited selection. Added to this, bank wire transfers can be expensive for traders making international withdrawals from their broker accounts. In terms of deposit currencies, Robinhood only supports USD as a deposit currency. This means that traders depositing in other currencies, such as ZAR/Rand, will likely incur conversion fees.

 

💳 Debit Card
💳 Credit Card
💳 Bank Wire Transfer

 

In terms of deposit security, Robinhood is a well-regulated broker with a prominent level of deposit security. Client deposits are protected up to $500,000 for securities and $250,000 for cash claims due to the broker’s regulation with the SIPC.

 

Added to this, Robinhood is a securities brokerage which means that it is regulated by the Securities and Exchange Commission (SEC). In terms of fees, Robinhood does not charge deposit fees, although withdrawal fees are charged on wire transfers. Domestic wire transfers are charged at $25, while international wire transfers are charged at $50, both of which are considered high withdrawal fees.

 

Step-by-step guide to depositing the Robinhood minimum amount

 

The following steps are required to fund your account with Robinhood:

 

🟢 Step 1 – Log into your Robinhood trading account

 

Log in to your trading account. You will be redirected to your trading account dashboard

 

Depositing the Robinhood minimum amount step 1

 

🟢 Step 2 – Select the Robinhood transfer tab

 

After logging in to your Robinhood trading account. select transfer to deposit funds into the Robinhood trading account.

 

Depositing the Robinhood minimum amount step 2

 

🟢 Step 3– Choose the Robinhood Transfer method of choice.

 

the next step in depositing funds into the Robinhood trading account requires traders to select the method of deposit listed below.

 

Depositing the Robinhood minimum amount step 3

 

🟢 Step 4 – Fill in payment information and transfer funds

 

Robinhood Trading Platforms

 

Robinhood features its own proprietary, an in-house trading platform that is available to most web browsers and mobile devices operating on either iOS or Android. The web trader can be accessed on macOS as well as Windows and it supports most modern browsers such as Google Chrome, Safari, Firefox, and Microsoft Edge.

 

Robinhood Trading Platforms

 

Although not as commonly known as MetaTrader 4 and MetaTrader 5, among other popular browsers, the Robinhood trading platform has numerous features that can be used in conjunction with a Robinhood account.

 

Robinhood vs Rakuten Securities vs Questrade

🥇 Robinhood🥇 Rakuten Securities🥇 Questrade
💳 Minimum DepositNo Minimum Deposit$50$1000
🎉 Bonus
💻 MT4
☪️️ Islamic Account

 

Robinhood's Top Countries by Similar Web

🌐 United States

95.54%
🌐 India
0.75%
🌐 Puerto Rico
0.40%
🌐 Canada
0.36%
🌐 Mexico
0.33%
🌐 Others
2.63%

 

Robinhood Similar Web

 

Robinhood’s Current Popularity Trend

 

According to Google Trends, here is an overview of how frequently the search term – “Robinhood” is entered into Google’s search engine over a given period of time.

 

 

Robinhood Pros and Cons

 

✔️ Pros❌ Cons
Registered member of FINRAUS Clients only
Trading costs low and no commission chargesHigh minimum deposit of $2,000 for the Gold Account along with $5 per month premium
Instant access to deposited cash on the Robinhood Instant AccountLeverage only up to 1:2
MetaTrader 4 and 5 not offered
Limited tradable financial instruments offered

 

Robinhood Customer Reviews

 

Good Broker

Robinhood is a good FX broker.. good job ..100% Recommended! – Tony

IG 5 Star Review

Robinhood website 

Robinhood’s website is easily accessible and user-friendly, also any minor issue I had was eventually resolved…. – Gugu

IG 4 Star Review

Robinhood Affiliate Program

I enjoy the opportunities to earn an income through IB programs offered by forex brokers, Check it out! – Chris

IG 3 Star Review

 

You might also like: Robinhood Fees and Spreads

You might also like: Robinhood Account Types

You might also like: Robinhood Demo Account

You might also like: Robinhood Sign Up Bonus

You might also like: Robinhood Minimum Deposit

 

Min Deposit

USD 0

Regulators

FINRA

Trading Platform

Proprietary Platform

Crypto

Yes

Total Pairs

0

Islamic Account

No

Trading Fees

Low

Account Activation

24 Hours

 

Final Thoughts

 

Overall, Robinhood offers comprehensive trading conditions in that there are no commissions charged on trades, but there is only leverage of up to 1:2 offered when in possession of a Gold Account. There are some tradable assets, but it is easy to see that Robinhood is more centered around short and long-term investments in its offering, although it does cater to both beginner and more advanced traders and investors.

 

Robinhood

 

The pricing is transparent and although only Bank Wire Transfer can be used for deposits and withdrawals, this is one of the most trusted payment methods that present the least issues, although there may be prolonged processing times involved with withdrawals.

 

Disclaimer

 

Although there is a limit to leverage and margined trading instruments provided by Robinhood, the risk of substantial losses still exists, and traders need to evaluate their financial objectives and positions before making trading or investing decisions.

 

Traders and investors alike will have to evaluate their risk exposure, willingness to be exposed to risks, and whether they can compensate for risks involved with the trading of and investing in financial instruments such as those provided by Robinhood.

 

Min Deposit

USD 0

Regulators

FINRA

Trading Platform

Proprietary Platform

Crypto

Yes

Total Pairs

0

Islamic Account

No

Trading Fees

Low

Account Activation

24 Hours

 

 

Frequently Asked Questions

 

 

Which platforms are supported by Robinhood?

 

The broker supports Robinhood web and mobile trader.

 

Is Robinhood Legit?

 

Yes, Robinhood is regulated and authorized by the Financial Industry Regulatory Authority.

 

Where is Robinhood located?

 

Robinhood is located in Menlo Park, California, USA.

 

What is the overall rating out of 10 for Robinhood?

 

Robinhood holds an overall rating of 8/10.

 

Does Robinhood manipulate the market?

 

No, Robinhood does not manipulate the market, Robinhood is a regulated broker through the Financial Industry Regulatory Authority (FINRA).

1/5 - (1 vote)

Written by:

Louis Schoeman

Edited by:

Skerdian Meta

Fact checked by:

Arslan Butt

Updated:

July 27, 2022

Written by:

Louis Schoeman

Featured SA Shares Writer and Forex Analyst.

I am an expert in brokerage safety, adept at spotting scam brokers in mere seconds. My guidance, rooted in my firsthand experience with brokers and an in-depth understanding of the regulatory framework, has safeguarded hundreds of users from fraudulent brokerage activities.

Edited by:

Skerdian Meta

Leading Analyst

Skerdian Meta FXL’s Heading Analyst is a professional Forex trader and market analyst and has been actively engaged in market analysis for the past 10 years. Before becoming our leading analyst, Skerdian served as a trader and market analyst at Saxo Bank’s local branch, Aksioner, the forex division and traded small investor’s funds for two years.

Fact checked by:

Arslan Butt

Commodities & Indices Analyst

Arslan Butt, a financial expert with an MBA in Behavioral Finance, leads commodities and indices analysis. His experience as a senior analyst and market knowledge (including day trading) fuel his insightful work on cryptocurrency and forex markets, published in respected outlets like ForexCrunch.

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