Is Robinhood or Cash App better?
If you want an all-in-one solution for most of your financial life that also offers stock-trading capability, Cash App Investing could be right for you. If you want to trade options or cryptocurrencies beyond Bitcoin, or you want to keep fees to an absolute minimum, Robinhood could be worth a closer look.
Investing on Cash App may be a good option for beginner, active traders wanting to trade commission-free stocks, ETFs, fractional shares, and bitcoin. However, plenty of other low-cost, beginner-friendly investing apps have better trading features, account options, and resources.
1. E*TRADE. The pioneer of online investing, E*TRADE is still a top alternative to Robinhood thanks to great platforms and good customer service. It also offers commission-free stock and ETF trades like Robinhood, although options trading costs $0.65 per contract.
Stock trading costs: 5 out of 5 stars
Robinhood provides 100% commission-free stock, options, ETF and cryptocurrency trades, making it attractive to investors who trade frequently. Still, these days many big-name brokers also offer free trades, so it makes sense to compare other features when picking a broker.
Risks Associated With Trading on Robinhood
For instance, Robinhood is a very sleek and minimal application, and investor tools are rudimentary compared with those of other major brokerages like Charles Schwab and E*Trade. This can lead to hasty and uninformed decision-making, especially for novice investors.
Under certain market conditions, stock exchanges are required by law to halt trading for certain periods of time. During a trading halt, you may not be able to buy or sell stock and attempted trades may be rejected. If your trade is rejected during one of these trading halts, you will see an in-app error message.
You can invest in a company you love by buying its stock. If the company performs well, you may generate a profit from its success. With Cash App Investing, you can purchase as little or as much of a stock as you want, even if you only want to spend $1.
Application | Forbes Advisor India Rating | Best For |
---|---|---|
Zerodha Kite | 4.5 | Overall Trading Experience |
Upstox Pro Trading App | 4.0 | Intraday and F&O Traders |
5Paisa | 4.0 | Retail Trading |
ICICI Direct | 4.0 | Seasoned Traders |
- Best overall: Charles Schwab.
- Best for active traders: TD Ameritrade thinkorswim trading platform.
- Best for beginners: SoFi Invest.
- Best for no commission fees: Vanguard.
- Best for long-term investing: Fidelity.
- Best for expert traders: Interactive Brokers.
- Featured Partner.
- What are our picks of the best investment trading apps?
- eToro.
- IG.
- AJ Bell.
- Trading 212.
- interactive investor.
- Hargreaves Lansdown.
Has anyone gotten rich from Robinhood?
Yes, some people have gotten rich from Robinhood. For example, one Robinhood user turned $250,000 into $400 million by investing in Tesla stock. However, it's important to note that these are the exception, not the rule. The vast majority of Robinhood users do not make money, and many lose money.
You should only provide your SSN to Robinhood if you are confident that they are a legitimate company and that they will take appropriate measures to protect your information.
For example, if a given stock costs $1,000 a share, you could use your $500 investment to purchase half of a share. Another benefit of fractional shares is that you can diversify your investments. For example, maybe there are 10 different companies in which you'd like to invest. You could put $50 into each company.
Withdrawals with Instant bank transfer: Instant bank withdrawals have a 1.5% fee deducted from the requested amount at the time of each withdrawal.
There's no fee for bank transfers. However, instant withdrawals to a debit card or bank account can incur a 1.5% fee.
- Robinhood – Best app for active trading.
- Stock Rover – Best app for stock research.
- Charles Schwab – Best app for beginners.
- Ellevest – Best app for socially responsible investing.
- Public – Best app for learning about companies.
- Fundrise – Best app for direct investment in real estate.
The answer depends on your needs and goals. CashApp offers commission-free stock trading, which is a major plus. However, the app does have some limitations, such as a limited selection of stocks and no ability to set up automatic investments.
Cash App Investing may remove stocks and ETFs (exchange traded funds) when they no longer meet certain criteria. Stocks and ETFs listed on Cash App typically meet the following criteria: Traded on NASDAQ/NYSE. Market capitalization above $300M.
This emphasis on cash generation steers investors toward dividend stocks, renowned for their ability to provide regular income to shareholders. AT&T Inc. (NYSE:T), Pfizer Inc. (NYSE:PFE), and 3M Company (NYSE:MMM) are some of the best Cash App stocks that pay dividends to shareholders and have high yields.
Depending on market activity, sales proceeds may take up to 2 business days to be deposited in your Cash App balance.
What stock should I buy today on Cash App?
Ticker | Company | Price |
---|---|---|
AAPL | Apple | $192.28 |
AVGO | Broadcom | $1204.08 |
BAC | Bank of America | $33.44 |
V | Visa | $267.80 |
Is Robinhood safe? Robinhood is a member of SIPC (Securities Investor Protection Corporation). This means that, if it goes under, up to $500,000 of your funds held by the broker will be protected. Note that this protection is for broker failure, not for losses due to investing activities.
The most popular discount brokers include Zerodha, 5paisa and upstox. Most discount brokers including Zerodha and Upstox offer brokerage free equity delivery trading and direct mutual funds. For all other segments, they charge a flat rate brokerage i.e. Rs 20 per executed order irrespective to the size of the trade.
Broker | Brokerage (Delivery) | Request Callback |
---|---|---|
Zerodha | Rs 0 (Free) | Open Account |
Angel One | Rs 0 (Free) | Open Account |
Fyers | Rs 0 (Free) | Open Account |
Alice Blue | Rs 0 (Free) | Open Account |
Broker | Brokerage (Delivery) | Request Callback |
---|---|---|
ProStocks | Rs 0 (Free) | Open Online Account |
Zerodha | Rs 0 (Free) | Open Account |
Angel One | Rs 0 (Free) | Open Account |
Fyers | Rs 0 (Free) | Open Account |
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