Robinhood Rating:  3-star brokerage firm rating

Does Robinhood offer DRIP service? Robinhood dividend reinvestment program fees on stocks, ETFs, and mutual funds.

Robinhood DRIP Plans

Robinhood doesn’t currently offer dividend reinvestment also known as DRIP. As an alternative you can use higher rated $0-commission broker Firstrade that not only offers DRIPs but also mutual funds, bonds, IRA accounts and robust website trading all of which Robinhood fails to deliver.

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Dividends at Robinhood

Robinhood processes your dividends automatically. Cash dividends will be credited as cash to your account by default, but not automatically reinvested in the stock.

How Does Robinhood Work?

Robinhood Financial is an app for iPhone and Anroid devices that allows users to trade on several major stock exchanges and other securities markets right from their phones. Robinhood prides itself on being completely free, which it is - it charges no commissions or fees on most trades, nor does it come with a subscription fee.

Users can create a Robinhood Financial account fairly quickly after installing the free app. Like many apps that synch with your bank account, the longest part of the process is bank verification. Users must also supply additional background information and make their tax disclosures in order to open an account, which is required with any investment platform.

Once your account is set up, you can begin trading immediately. Robinhood does not charge trading fees or commissions to trade U.S. stocks online.

Increased buying power (also called margin borrowing) is available through Robinhood's one premium product, Robinhood Gold. The broker charges a monthly fee for this unique margin service if margin loan is under $50,000. The fee isn’t a percentage of money borrowed, as with a traditional margin service; but rather it is a flat monthly charge. The exact amount is based on account size, which has a minimum of $2,000 to use margin, per federal policy. The minimum fee is $6, and it increases up to $200, depending on the amount you want to borrow. If you borrow more than $50,000, Robinhood charges 5.0% on balances above that level.

Robinhood's interface is very simple. Users are presented with basic performance metrics for their investments, as well as live trading prices and quick news items, upon opening the app.

Robin Hood Investing Review

Robinhood's user interface is intuitive and easy to use. Selecting an individual security opens up charts of that security's performance over the trading day, week, month, year, and the past five years, as well as the user's own returns and news relating to that security.


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