Picking a good Australian stock broker is vital. There are so many thing that you have to take into consideration. We will show you everything you need to know.
Unfortunately, a lot of online stockbrokers require users to pay a commission. The commission can be very expensive, especially if the site is reputed.
However, you won’t face such a situation with Robinhood as they don’t require a commission from customers. This is especially great as their interface is smooth and informative, helping you invest wisely.
As they don’t take commissions, you may be wondering how they make money. They do this by analyzing your data and selling it to tech firms. This may seem worrying, but it is, in fact, a standard practice that major names like Facebook and Instagram do as well.
More and more online brokers are letting users utilize their services without paying a commission, like Robinhood.
Robinhood caters to American users and is therefore a US-based site. If you’re a user from anywhere else, trading can be more expensive. This is because they have increased the trading rates for non-US users.
If you want to set up a Robinhood account, know that you aren’t required to make a minimum deposit.
When creating an account, you’ll see that it’s an easy and quick process. So, you can start trading almost immediately.
Unfortunately, you can’t link your credit or debit card to it. This is because the site doesn’t allow its users to trade with them.
Will You Be Penalized?
Some stockbrokers penalize their clients for various reasons. This is especially true of major names in the game.
They penalize users in numerous ways. For example, if your account is inactive on their site, you will have to pay a sum to reactivate it. This is also true if you’ve backed out of a purchase.
Fortunately, Robinhood doesn’t enforce such penalties. Plus, it’s completely free to access.
Do You Want A Membership?
If you have a Robinhood account, you would appreciate the fact that its services are free. However, it offers premium features that are hidden to normal users. You can access them by becoming a Robinhood gold member.
In terms of the perks, you get access to Morningstar reports, Level II streaming quotes and margin trading. All of this is available to you for $5 USD a month.
However, many users say that the gold membership is useless as you can get the paid features for free on other sites.
Of course, these sites don’t offer reports that are as extensive as Robinhood.
Unfortunately, not everyone can open a Robinhood account. This is because the site has restricted access in certain countries. One of these is Australia.
This is unfortunate since Australia has a large number of traders. So, no matter how much you like their services, you might not be able to work with them the way you expect.
To invest in stocks, you need to be as informed as possible. Hence, you should read the latest reports and be educated. Most online brokers offer users latest reports. Fortunately, Robinhood does so as well.
They constantly update you with the latest news on stocks, helping you make the best purchase. That being said, the reports you’re getting won’t be extensive unless you pay for Robinhood Gold.
This is a shame as Robinhood’s competitors offer such services for free.
Be A Better Trader
Many online brokers offer users trading ideas. These are based on research and reports, helping users invest better. In the long run, it’s important to work with such sites. Unfortunately, Robinhood doesn’t do this.
This may affect whether you want to work with them or not. You could come up with such ideas yourself by going through their news reports and research; but as mentioned, Robinhood doesn’t offer thorough reports unless you’re a gold member.
What Do You Want To Trade?
Robinhood allows you to trade a number of things, which don’t just consist of stocks. You can work with stocks as well as cryptocurrencies and ETFs. So, you don’t have to switch between platforms for each.
Ease Of Use
In terms of availability, the fact that it’s not available in certain countries might be a huge drawback. However, its access isn’t restricted according to the type of device you’re on. It’s available on all computers and mobile devices, irrespective of their operating systems.
What’s more, its interface is known to be very easy to use. On their website, you’ll see a minimalistic design with a lack of clutter. This makes it easy for you to go through, and make your decisions wisely. Of course, the simple design translates to its mobile version as well.
You can download it from the AppStore, be it IOS or Android. Many have noted that the mobile app functions more smoothly than the web version. In fact, it looks better as well. So, if you’re using Robinhood on your computer, you may not trade as well as if you were on your phone.
If you were to compare the mobile and web versions, you would see that the app has more customizability. So, you can edit your account to your liking.
Customer support is vital when trading stocks. You may hit a bump, so adequate services are needed to resolve any issues you might run into.
Thankfully, Robinhood offers great customer support. If you have any questions, you can simply email them. They’re known to offer quick feedback. Furthermore, there’s an FAQ section on their site with some common problems along with the proper solutions.
Contacting them through emails would be your only option, though. However, you can’t talk to them directly as Robinhood doesn’t offer such a service. Not just this, but live chats aren’t present either. This is unfortunate as most of Robinhood’s major competitors offer live chats, especially etoro.
You have to be careful when working with online brokers. This is because they may not be trustworthy, and may even mishandle your cash. Because of this, they have to be certified. If they’re licensed, you know they’re safe to work with.
In terms of Robinhood, it’s safe for you to trade on as they are regulated by top tier financial authorities. Moreover, they offer large levels of investor protection.
Although this is a major plus, they’re not listed on the stock exchange. This might call into question their reputability. As they’re not on the stock exchange, Robinhood is not as verified as its counterparts.
Taking the above into consideration, it’s safe to say that there are countless pros and cons of trading through Robinhood. To summarize:
- It offers investor protection
- It’s regulated by financial authorities
- Friendly and quick email support
- Simple interface
- Can trade stocks, cryptocurrency, and ETFs
- Provides free reports
- Easy to set up
- No commissions or minimum deposits
- It’s not on the stock exchange
- No call centre or live chats for customer support
- Mobile version works better than PC counterpart
- Extensive research and reports only accessible through a paid membership
- Not available in countries like Australia