Robinhood, a significant participant in the investment sector, allows users to trade stocks, ETFs, options, cryptocurrencies, and more.
People who “bet it all” on hot stocks and options have lately earned a lot of negative attention. FINRA recently levied a record penalties of $70 million for “systemic supervisory failings.”
Robinhood bills itself as the financial future, with zero-cost trades, a well-designed smartphone app, and a wave of high-profile investors.
Is its no-commission trading platform appealing to users and investors? Should you try it as an investor?
But before that…
In this Robinhood review, we’ll dive into the pros and cons of the program.
But before that, let’s ask ourselves: Is affiliate marketing even a worthwhile business model?
On the one hand, the promise is great…
You don’t have to create products, worry about fulfillment, customer service, or bad reviews.
Your only job is to get the right customers in front of the right offer, and take a commission when they buy.
And – theoretically – you can do it all in an hour a day from the beach.
Sounds simple, right?
Well, not really. Driving traffic (that’s internet speak for getting customers) is single-handedly the hardest part of the entire marketing process.
Later in this review, we’ll talk about all the different skills you need to drive traffic successfully.
For now, let’s just say the promise doesn’t really match up with reality.
At best, affiliate marketing is a job. You’re working for someone else, selling their products, and at any time, they can change your commission structure or block you from selling their stuff entirely.
In this business, you don’t really own or control anything. Since – for the most part – you’re driving traffic (again, the hardest job of all) and sending it to someone else, you don’t even get to keep the customers, who are the most valuable piece of the puzzle.
At worst, affiliate marketing is a pyramid scheme. There are certain – ahem – programs that charge you a monthly “membership fee”, under the guise that you will learn how to be a “wealthy affiliate marketer”.
Once you join, however, you find out the only way to really make money is by being an affiliate for that program.
That’s pretty much the textbook definition of a pyramid scheme.
Now, let’s say you really want that hour-a-day-work-from-the-beach lifestyle.
What if there was a way you could build a passive income stream that’s actually passive?
An income stream that doesn’t require:
- Thousands of dollars and hundreds of hours before seeing your first dollar
- Doing all the hard work of driving traffic to only get a tiny commission
- Running your business on someone else’s terms
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day testing, tweaking, and risking your money in the hope you can finally start making sales?
If that sounds like something you’d be interested in, check out Digital Real Estate.
This is like taking all the good parts from affiliate marketing (however few there are), and putting aside all the bad.
However, if you’d still like to know more about Robinhood, keep reading.
What Is Robinhood?
Robinhood is a mobile investment and banking app that is available for free. It is a technology start-up with the goal of changing the investing game.
And it’s effective. Trading stocks, ETFs, and options on Robinhood is completely free. This was unheard of when it was first introduced. Almost all big stockbrokers no longer charge commissions or fees.
In my opinion, most users are better served elsewhere. But if you’re interested in Robinhood, read on.
Robinhood’s main features include:
- Commission-free trading stocks, ETFs, options, and more…
- Forex trading with a fixed commission
- Investing infractions
In addition, Robinhood Gold offers low-cost margin trading.
Robinhood Cash Management – a debit card cash management bank account.
Trading mutual funds are not supported by Robinhood. On Robinhood’s platform, you also can’t buy bonds.
In this Robinhood review, we’ll dig deeper.
Robinhood Trading Platforms And Tools
Robinhood is intended for beginners who wish to understand the fundamentals of investing. However, after you’ve learned how to invest, Robinhood may not be enough. Because the trading tools and services offered by Robinhood are inferior to those offered by the greatest online stock brokers.
Trading tools: When compared to competitors, Robinhood’s trading tools are minimal. With just four technical indicators, charts are crucial. TradeStation has around 300, while TD Ameritrade has over 400. During the day, TD Ameritrade and Charles Schwab, for example, provide live broadcasts with in-house specialists.
Fractional shares: The simplicity of Robinhood is its greatest strength. For example, its recurring investment strategy tool allows you to invest a fixed dollar amount weekly. With Dividend Reinvestment enabled, Robinhood automatically reinvests dividends earned from the stock market or Stock ETFs Options, provided the symbols support fractional share trading.
For simplicity, I like Robinhood’s smartphone app. Robinhood offers:
- Basic watch lists.
- Recent news.
- Basic stock quotes with charts & analyst ratings.
- Streaming Bloomberg TV.
- Simple trade entry.
Watch lists: Simplicity has its drawbacks. The watch list functionality is minimal, with only a few optional columns beyond the last price and percentage change. TD Ameritrade and TradeStation both offer over 300.
Commissions And Fees
Robinhood now provides cryptocurrency and ETF trading in addition to stock trading.
Robinhood’s revenue model is as follows:
Facebook (FB) is a completely free service. To compensate for not charging a membership price, it collects user data and sells adverts. Robinhood is a free service as well. Instead of selling advertisements, Robinhood sells your order flow to wholesale market makers. So Robin Hood isn’t entirely free. However, in today’s era of zero-cost transactions, almost all brokers, with the exception of Fidelity, take payment for order flow (PFOF).
Few companies, such as Robinhood, provide commission-free bitcoin transactions. It now only accepts seven coins:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Bitcoin SV (BSV)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
This is one of the grounds why Robinhood hasn’t made our list of best crypto exchanges. It’s also worth noting that while Robinhood doesn’t charge a fee directly for crypto traders, the spread does.
The company’s top-tier offering is Robinhood Gold. Gold is available for as low as $5 per month.
Robinhood Gold has the following features:
- Margin Trading: This feature is marketed as “Gold Buying Power,” but it is actually just a 2x margin on your account. However, unlike other margin accounts, you do not pay interest on this account. Your margin power is determined by the flat monthly fee you will pay.
- Before and after-hours Trading: You will have access to both pre-market and after-hours trading.
- More extensive Instant Deposits: You can get instant access to your money, even if you sell a security, and you don’t have to wait a few days for the settlement (they call this “Instant Reinvestment”)
- Level II Market Data and Research: In addition to Level II data, you’ll have access to Morningstar’s professional research.
Robinhood also announced in December 2020 that it would reduce its margin rate from 5 percent to 2.5% on any amount above $1,000 (the first $1,000 is included in your Gold monthly fee). That is one of the lowest rates available anywhere.
Robinhood Customers: Robinhood Cash
Following a bumpy start, Robinhood now provides a cash management account with an APY that competes with the top high return savings accounts.
The current annual percentage yield (APY) is 0.30 percent. This, like other variable rates, may climb or decrease.
With no minimum balance restrictions, monthly fees, or overdraft penalties, this account is a no-brainer.
The sole disadvantage is that other ATM costs are not refunded. To get around this, you’ll need to download their app. If you satisfy these standards, you will get an excellent financial management solution.
How They Make Money
I’m usually cautious of companies who give out free stuff. This is not a charitable organization. Investors will be trying to go public and earn a fortune. However, in order to do so, they must generate revenue. How do they manage it?
They have two of them. For starters, they sell your information to other parties. This is a big source of income for them, but it may result in a loss for individual investors.
A Robinhood Gold Account membership provides you access to tools such as margin trading.
Long-term investors are unconcerned by these. A $0.01 per share rise (possibly) should not deter a long-term buyer. However, if you’re a trader (such as on Robinhood’s platform), this might be pricey.
Robinhood Bonus And Promotional Offers
Sign up with a Robinhood account and you’ll get a free share of stock. The theoretical value of the share is $3 to $225, but Robinhood estimates it will be between $2.50 and $10.
They sometimes provide a higher bonus. View current promotions:
Sign-up Bonus of $15 for New Students
Get a $15 bonus when you open a new account using a dot.edu email address. Students who join up using a “.edu” email and connect a bank account between September 15 and October 24 will earn $15.
Is Brokerage Account Are Safe And Secure?
TLS protocol data protection, TouchID, FaceID, personalized PIN code, and two-factor authentication for Robinhood accounts are among the security features.
In October 2020, while still being hacked. A hacker accessed over 2,000 accounts, and at least one consumer has already filed a lawsuit against Robinhood.
SIPC protects all advisory or brokerage services up to $500,000. Robinhood’s partner banks cover cash accounts up to $1.25 million.
Is Robinhood A Scam?
So, is Robinhood a scam? Not technically. You can make money with this program, but making money with affiliate marketing definitely isn’t as easy as the company makes it sound.
Driving traffic is extremely difficult. In order to do it successfully, you need to at least understand all these things, if not be a ninja at them:
- Google Ads
- Facebook Ads
- Content Writing
- Website Building
- Conversion Optimization
- Email Marketing
- Click Tracking
And a lot more.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual commissions are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months and then your reward is a $50 commission, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?
And what if you only needed 1 or 2 of the above skills to get started, instead of mastering all 12 before seeing your first dollar?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Real Estate.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.
Are There Alternatives To Robinhood?
Yes, there are plenty of Affiliate Marketing programs and resources to choose from if you want to pursue this business model. Here are just a few:
- CB Engine
- Simple Wifi Profits
- Wealthy Affiliate
- High Ticket Affiliate Programs
- Global Affiliate Zone
What Is My Top Recommendation In Making Money Online In 2022?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
2) You Own & Control EVERYTHING: With Affiliate Marketing, you don’t really own anything. You have no control over the quality of products. You don’t even own customers.
Look at the fine print for most affiliate agreements. At any point, the company can change your commission structure, reduce your profit margins, or kick you out entirely.
With Digital Real Estate, you own the assets, which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with affiliate marketing, you’d have to double your traffic, double the average order size of each customer, OR double your commission rate. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
5) Make Money Helping Real People: This part is what makes it all worth it. With affiliate marketing, you’re selling the product with the best commission rate, NOT the one that’s going to improve the most people’s lives.
And that makes it pretty hard to sleep at night.
But with Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours. You could continue browsing, looking at opportunities like Robinhood which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.