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Money is your Bae. And we think that’s awesome. As with anyone who’s in a serious relationship would know, being separated from your Bae can be pretty hard. Isn’t it frustrating that this happens all the time with your money when you’re trying to invest it? With all the fees one has to incur when investing in stocks, as an early investor this means all my mistakes during the learning process cost a whole lot more than they should.
Enter the App that will change your life: Robinhood
Robinhood was created in order to give millennials a way to invest without all the annoying fees . It’s a platform tailored for mobile rather than desktop use, which is great since we’re always on our phones. They’ve certainly succeeded! Millennials have adopted the app in droves and for a number of good reasons. The app provides an excellent entryway into investing. There are three distinct reasons this app is so beneficial to millennials.
What once was a topic that seemed boring, complicated, and specialized is now accessible and interesting.
Since Robinhood allows stocks to be traded without fees, this provides a low-cost environment to engage with the practice of stock trading. Scottrade’s per trade stock price is at $7.00 and Etrade’s per trade stock price is at $9.99. Robinhood has taken the sting out of trading frequently and set up the scenario where a “learn by doing” strategy isn’t painful. Making a mistake in a trade is bad enough. Imagine paying for that mistake by losing your investment and paying $7-$10 dollars for the cost of that mistake. Thanks to Robinhood, millennials can now gain investing experience without the fear of fees.
The app has Real-time market data streaming into it and notifications can be enabled to ensure you never miss the important stuff. Robinhood has taken an industry that seemed to only exist on Wall Street and place it in the pocket of a millennial. What once was a topic that seemed boring, complicated, and specialized is now accessible and interesting. Robinhood has become a learning lab for millennials that seek to enter the world of investing.
3. Entry Point
You can trade on the app rather than setting up an E-trade account or calling a broker to make a trade for you. Additionally, there is no minimum deposit to start. The barriers to entry in the investing world have never been lower. This allows for a flood of novices to enter the market and try their hand at investing. While this may also create some painful mistakes early on, the barriers and costs that previously kept the average person out have vanished.
Using Robinhood to invest provides a multitude of benefits. It’s easy to get started, gives you early education on investing coupled with low-risk learning. This allows you to have fun figuring out investing on your own terms. However, it’s important to view this app as your first step into the world of investing. Rather than your entire mechanism by which you view your investment and retirement strategy. Therefore, having a 401K set up and in motion to build wealth over the course of your life is crucial. Overall, investing with Robinhood means never having to separate with Bae, whilst simultaneously growing your skills and net worth as an investor.