investing

New App Lets You Buy, Sell Stocks With No Fees

For Robinhood, the price is right but the wait is long.

Investors are lining up around the virtual block to buy and sell stocks on a new mobile brokerage app that offers commission-free trades. The app, called Robinhood, has a waiting list of more than half a million people, 80% of them between 18 and 29 years old. That’s no accident. The app’s creators want to attract millennials by making stock trading intuitive, accessible and cheap.

You don’t have to be young to see the appeal. There’s no minimum balance required and no commission to trade U.S.-listed securities. For now, you can trade only stocks and exchange-traded funds—no mutual funds, options or short-selling. When they’re rolled out, paper statements and broker-assisted phone trades will cost extra.

Skeptics say that zero-commission trades have been tried before, and question whether Robinhood will generate enough revenue from other sources (the interest it earns on cash in customer accounts, for example) to succeed. Others say the trend toward zero commissions has legs, and that Robinhood is ahead of the game. Users are being phased in gradually. Get on the waiting list at www.robinhood.com or by downloading the app for your Apple device. Expect an Android version later this year.

Most Popular

Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer
Coronavirus and Your Money

Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer

The IRS has an online tool that lets you track the status of your second stimulus check.
January 18, 2021
When Could We Get a Third Stimulus Check?
Coronavirus and Your Money

When Could We Get a Third Stimulus Check?

President Biden and others in Congress are pushing for a third-round of stimulus checks, but it might be a while before we get them.
January 20, 2021
6 Reasons Why Your Second Stimulus Check Might Be Delayed
Coronavirus and Your Money

6 Reasons Why Your Second Stimulus Check Might Be Delayed

The IRS started delivering second-round payments in December. If you're still waiting for your money, here's why your second stimulus check could be l…
January 18, 2021

Recommended

Bonds: 10 Things You Need to Know
Investing for Income

Bonds: 10 Things You Need to Know

Bonds can be more complex than stocks, but it's not hard to become a knowledgeable fixed-income investor.
July 22, 2020
Is the Stock Market Open on Inauguration Day 2021?
Markets

Is the Stock Market Open on Inauguration Day 2021?

The federal government will enjoy an off day on Inauguration Day, but the stock and bond markets alike will conduct business as usual.
January 19, 2021
3 Municipal Bond Funds for Rich, Tax-Friendly Yields
Investing for Income

3 Municipal Bond Funds for Rich, Tax-Friendly Yields

Municipal bond funds allow you to enjoy the benefits of tax-exempt income. By investing in CEFs, you can sweeten the pot even further.
December 31, 2020
Stock Market Holidays in 2021
Markets

Stock Market Holidays in 2021

Is the stock market open today? Take a look at which days the NYSE, Nasdaq and bond markets take off in 2021.
December 30, 2020