{"id":6074,"date":"2023-02-17T07:12:24","date_gmt":"2023-02-17T07:12:24","guid":{"rendered":"https:\/\/www.wallstreetzen.com\/blog\/?p=6074"},"modified":"2024-10-03T20:18:37","modified_gmt":"2024-10-03T20:18:37","slug":"is-robinhood-safe","status":"publish","type":"post","link":"https:\/\/www.wallstreetzen.com\/blog\/is-robinhood-safe\/","title":{"rendered":"Is Robinhood Safe & Legit? Read THIS Robinhood Review Before Trading"},"content":{"rendered":"\n

Robinhood is an online brokerage which caters to the new generation of investors, providing easy access to trade stocks, ETFs, and cryptocurrency. <\/p>\n\n\n\n

Robinhood’s stated mission since its founding is to democratize finance for all. The platform pioneered commission-free trading, but it didn’t stop there. These days, Robinhood offers an IRA match, high APY on uninvested cash, and more. <\/p>\n\n\n\n

But Robinhood’s trajectory hasn’t been straightforward. It’s experienced some growing pains including complaints and outages since its 2013 founding \u2014 and it has new investors wondering, Is Robinhood safe?<\/p>\n\n\n\n

In this Robinhood review I will answer that question, list the pros and cons, and lay out who Robinhood is best for so you can determine if it\u2019s the right brokerage app for you.<\/p>\n\n\n\n

Is Robinhood Safe & Legit?<\/h2>\n\n\n\n

The Bottom Line: <\/strong>Yes, Robinhood<\/a> is safe and legit. But before we dig in deeper, it may be helpful to explain why Robinhood’s safety is a question at all.<\/p>\n\n\n\n

To understand, we need to go way back to January 28, 2021, when Robinhood became the center of controversy after preventing users from buying stock in several companies, including GameStop (NYSE: GME<\/a>), AMC Entertainment (NYSE: AMC<\/a>), and Nokia Corp. (NYSE: NOK<\/a>). It cited issues with stock volatility and regulatory requirements, resulting in major frustrations from users and lawmakers. <\/p>\n\n\n

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This event was unprecedented, and it certainly put Robinhood’s safety and ethics under scrutiny. <\/p>\n\n\n\n

While Robinhood harps on democratizing finance and investing on your own terms, any new investor would want to be assured another GameStop incident doesn\u2019t happen again.<\/p>\n\n\n\n

As of 2024, Robinhood has not had another major event like that. So far so good. <\/p>\n\n\n\n

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Claim free stock on Robinhood<\/a><\/div>\n<\/div>\n\n\n\n

What is Robinhood?<\/strong><\/h2>\n\n\n\n

These days, commission-free stock trading is the norm. We have Robinhood to thank for that. <\/p>\n\n\n\n

Robinhood<\/a> was the first brokerage to offer commission-free stock, ETF, and option trading. In addition to low fees, it also boasts an extremely intuitive easy-to-use interface and low investment minimums that reduce the barrier to entry for stock market investing.<\/p>\n\n\n\n

As you might imagine, it caught on like wildfire. Here’s a brief summary of Robinhood’s trajectory:<\/p>\n\n\n\n