The evolution of stock trading continues. Long gone are the days of calling up your broker to make a trade. Along came the internet which revolutionized the trading process as firms like E*Trade, Scottrade, and Charles Schwab built platforms online to offer cheap, quick, and do-it-yourself trading at $5 – $10 an order.
The evolution continues as a new app by RobinHood begins to roll out which offers commission free stock trades for it’s users.
Commission free trades not just for a limited period of time, or for those with a special code, but forever.
Completely free stock trades
How is this possible?
According to the RobinHood website, they’re aiming to cut out the fat of the industry – storefront locations, old technology, and paper-based accounting. By creating a more efficient system, they radically reduce costs and pass savings on to it’s users.
As the technology, and platform behind the app is developed further the company plans on making money by offering margin trading, and also providing data access to other developers through api access which of course they’ll charge for.
The cost to traders? Zero. Nada.
New investors take notice!
One of the biggest groups that should be particularly excited about the RobinHood app is new investors and those with limited funds to invest. No more worry about commission fees cutting into a year’s worth of profits when you’ve got a very limited amount of cash to invest. All you’ll need is enough cash to cover a share of the stock itself, and you’re good to go.
Slick and easy to use
While we haven’t personally used the app yet, it’s being lauded as being pretty slick and easy to use. 3 taps to execute a trade, and notification alerts on your phone whenever important stuff happens with your stocks sounds pretty cool to us.
It’s not built for users to do in-depth stock analysis, but chances are you wouldn’t want to do that on a phone anyway. You can easily do your research on the computer, then pick up your phone to execute the trade.
It’s funded by Google
If you’re still leery, rest on the fact that RobinHood is backed by a few major venture capitol firms like Google and Andreessen Horowitz (who’s investment portfolio boasts the likes of Twitter, Skype, Facebook, and Pinterest).
If the RobinHood app really can deliver on quick trade execution, commission free trades, and an easy to use interface, it could be a major game changer in the field of stock trading.
Check out the RobinHood promotional video below, and put your name on the waiting list to join here.