I can’t really give you a comprehensive comparison at this time, but I do know that Fidelity usually charges about $7.99 per trade. Now that does beg the question “how does Robinhood make money?” Well, I’m glad you asked (because honestly so did I).Īs you probably know, whenever you purchase or sell stocks the brokerage charges a fee called a commission. What is Robinhood?Īccording to the Robinhood website, this app lets you “Invest in stocks, ETFs, options, and cryptocurrencies, all commission-free, right from your phone or desktop.” Admittedly, this may seem like a terrible thing to try to test out…but then someone’s got to do it, right? So here I am, your blogging crash test dummy, reporting my findings about the Robinhood app. Considering that these seem like some wild claims (and because I have a healthy curiosity about new personal finance apps), I decided to download Robinhood a few months ago and give it a test drive and see if it was legit or an outright scam.

There has been a lot of talk lately about Robinhood, a stock trading app that claims to offer commission free trades for stocks and cryptocurrency and also claims to give people free stocks for signing up. I was pleasantly surprised to find that Robinhood is a legit and safe app for stock trading. I wanted to learn more about whether Robinhood was a scam or not, so I downloaded the app and tested it myself. Robinhood is a stock brokerage app that lets you trade without having to pay commissions on the purchase or sell of stock.

Robinhood app legit