If you want to begin investing, there are a number of different strategies you can use and a number of different platforms, from online to traditional brokerage firms.
With most brokerage companies, you have to pay a commission fee for each trade you make, which can range from $5 to $10 per trade.
If you’re looking to be an active trader, these commissions can dip into your gains and impact your losses.
Fortunately, there are options like Robinhood, a mobile-focused brokerage company that offers no-fee trades.
Robinhood is set up to be optimal for people who look for more of a long term investment. I would not recommend it for day traders or high rollers. Their focus on doing “free” so well has allowed them to rapidly gain marketshare among the long term investor.
You can learn more about how markets work that you wouldn't be able to at a traditional broker. The mobile platform is robust and there have been no problems with the timing of trades.
Robinhood has the same protections that any other full service broker would have.
In short, particularly for the small investor, there is no real downside to Robinhood.