Advertisement
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.

Advertisement - Article continues below

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.

Advertisement
Advertisement

Most Popular

7 Surprisingly Valuable Assets for a Happy Retirement
happy retirement

7 Surprisingly Valuable Assets for a Happy Retirement

If you want a long and fulfilling retirement, you need more than money. Here are the most valuable retirement assets to have (besides money), and how …
August 3, 2020
Turning 60 in 2020? Expect Lower Social Security Benefits
Coronavirus and Your Money

Turning 60 in 2020? Expect Lower Social Security Benefits

When you file for Social Security, the amount you receive may be lower.
July 30, 2020
Retired? Good Luck Getting a Mortgage, Even If You’re Wealthy
mortgages

Retired? Good Luck Getting a Mortgage, Even If You’re Wealthy

One 70-year-old’s story highlights the challenges. Prepare for more paperwork and hoops to jump through than you could imagine.
August 2, 2020

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
Kip ETF 20: The Best Cheap ETFs
ETFs

Kip ETF 20: The Best Cheap ETFs

You can build a solid core for your portfolio and explore new opportunities with our favorite low-cost exchange-traded funds.
July 28, 2020
Metropolitan West Corporate Bond Has a Bright Future
Making Your Money Last

Metropolitan West Corporate Bond Has a Bright Future

This new-ish corporate bond fund is comanaged by familiar faces.
July 23, 2020