Written by Stephane Dubois
Reviewed by Sandro Pontedra
Robinhood General Information
Robinhood is a US-based, zero-fee discount broker established in 2013. The company is regulated by top-tier financial authorities, such as the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Besides the brokerage service, Robinhood also introduced Cash Management to help clients earn interest on uninvested funds. Click here for more details on this great and unique service. BrokerChooser is committed to bringing high transparency and clarity to its customers, including brokers and partners.
Robinhood Cash Card. Earn weekly rewards as you spend. Introducing the new Robinhood Cash Card—it’s the debit card with weekly rewards that helps you build investing habits.
At Robinhood Markets, our values are in service of our customers. We strive to uphold our values every day.
- Safety First. Robinhood is a safety-first company
- Participation is Power. At Robinhood, the rich don’t get a better deal
- Radical Customer Focus. We exist to make our customers happy
- First-Principles Thinking. We make bold bets and challenge the status quo
We believe the financial system should be built to work for everyone. That’s why we create products that let you start investing at your own pace, on your own terms.
Digestible financial news, served daily. Find our bite-sized breakdowns on the biz news you need in our newsletter and in the Robinhood app.
How we make money
Explore the revenue streams that support our business, allowing us to bring you a range of financial products and services.
Routed for the best execution
We have relationships with several market makers, and our routing system is designed to automatically send most orders to the market makers that are likely to give you the best execution, based on historical performance. The routing system is also designed to automatically send a small portion of orders in stocks and ETFs to an exchange, taking into account the quality of past executions. This preserves our ability to maintain trading in the event that one or more market makers is unable to execute orders. Under applicable exchange fee schedules, we would generally pay the exchange when we take liquidity and be paid when we provide liquidity.
At NBBO, or better
Most orders placed on Robinhood are executed at the nationally published quote—also known as at NBBO, or better. This means the vast majority of our customers are receiving, at a minimum, the best available bid or ask price.
Regular, rigorous reviews
We know our execution quality is only as good as our last, so we keep up with the quality you receive by performing thorough reviews on a daily, monthly, and quarterly basis. When we review, we evaluate critical factors that go into receiving a quality execution, like execution price, speed, and price improvement, as well as market conditions.
- Bigger Instant Deposits. No more waiting up to 5 days. Up to $50,000 in funds to trade as soon as you put money into your account.
- Research & Data. Access legit sources to help better inform your investing strategies like Morningstar ratings and Level II market data.
- Margin Investing. Get more buying power and borrow money at a 4.25% interest rate — one of the best rates in the industry.