2019 Robinhood debit card interest rate, awards, bill paying, check-writing, ATM withdrawals, $0 annual fee credit card, and 10% bonus.

Robinhood Debit and Credit Cards

Robinhood does not offer debit or credit cards at this time. For a free account that offers debit card take a look at TD Ameritrade Debit Card.

Robinhood Checking, Money Market Account

Check-writing service and money market accounts. Uninvested cash at this broker earns 0% APY interest. For the best combination of low-cost broker and highest interest online savings account read Ally Invest Review.

Robinhood Investments Review

Who Is Robinhood Brokerage Good For?

Robinhood is the perfect app for anyone who either wants to begin investing small amounts of money or who wants to diversify their portfolio using an app that will allow small trades without losing value to trading fees. Robinhood's lack of trading fees will make it especially attractive to users who aren't investing at such a volume that trading fees become insignificant.

The real danger in Robinhood for the new user, however, is that it makes trading too easy. People who are totally new to investing or day-trading will be attracted to the ability to make instant commission-free trades from their phones. But because Robinhood lacks any research tools and allows trades to be ordered (and paid for) with just a couple of clicks, users who are totally new to investing will not be exposed to education about the risks involved with buying and selling ordinary stocks quickly and easily. Such users may be tempted to act impulsively based on transient trends, sudden bad news about a security that is irrelevant to its actual values, or the dreaded "gut instinct" that can turn any trader's overconfidence into a gaping new risk profile.

As tempting as it may be to set up a Robinhood account for a child or grandchild or a friend who has expressed an interest in beginner investing based on the promise of quick, easy, and free, users who don't know what they're doing with their money will not have the tools they need to make informed decisions about new investments.

Robinhood is not a beginner tool (read Best broker for beginners), nor is it a teaching tool. Because of the limitations it suffers in terms of the markets it can access, the research it provides, and the total lack of advanced trading features, it is also not for expert traders. Robinhood is perfect for someone who already has the tools and training they need in order to make informed, risk-sensitive decisions about the securities they purchase, but doesn't have the buying power needed to make trades at a scale that mitigates losses to trading and commission fees.

Robinhood pairs well with ThinkOrSwim (read review) or with any other mainstream securities research tools. Users with access to multiple trading platforms will have no trouble using separate research tools to make a decision that is then implemented, quickly and for free, by Robinhood.

For manually buying and selling individual securities, Robinhood is a great tool because it allows the user to make small or experimental investments for free. But for the trader who is either totally uninformed, or who is an expert, or who is trading at a volume that eliminates trading fees as a serious cost, a full-service investment solution that allows for advanced trades like options and swaps, provides research tools through the same platform, and that isn't limited to major American exchanges is a far better bet.


Continue Reading