#1 Robinhood in 2020? Best trading Platform

Investing in the stock market is a great way to increase your wealth over time and you if have some extra cash lying around, then I recommend you learn how to trade. But I know what you’re thinking, with so many trading platforms out there how do I find the best one? Personally I’ve been using Robinhood and I have 3 reasons why I think you should too. Reason: 1 Robinhood is free to use. Other trading platforms can charge up to $5 dollars per transaction. This means, if I wanted to buy a share of AT&T at $30 I would have to pay a total of $35. If after a few months, that same share was worth $35 dollars and I wanted to sell, I would have to pay an additional $5. So for a $5 gain, I spent $10. Robinhood, on the other hand, is completely free, so that share of AT&T would only cost me $30 and after a few months if that share increased to $35 then I would get to keep 100% of my gains. Robinhood being free is a great way for those with very little money to get involved in investing. The one downside is unlike the paid platforms Robinhood does not trade in real-time. This means, if I buy a stock at 12:00 that stock may not be executed until 12:05 or 12:30 and in the stock market that could mean the difference between a 10% return and a %2 return. Reason: 2 Reason number 2 I’m actually really excited about and its actually the reason why I decided to make this video. But just a couple days ago Robinhood announced that it would allow users to purchase fractional shares of companies. This is huge. Being able to purchase fractional shares means instead of having to buy a whole share of a company you can now buy fractions of a share. Why is this big? Well for me, it’s going to allow me to diversify my portfolio by being able to dip into different sectors with less capital. Also, I’ve been dying to buy shares of companies like Amazon and Google who’s cost per share is in the thousands. Fractional shares mean I can own a piece of those companies for just $1!! Fractional shares also mean I can research stocks a little better. Sometimes I like to buy a stock and hold on to it for a couple of months to see how it’s doing before I buy multiple shares. Originally I would have to buy a full share but now I can invest way less money which means more money to invest in other stocks. Reason : 3 Reason number 3 is just as exciting, as Robinhood announced its dividend reinvestment plan DRIP. For those who do not know what dividends are; essentially some companies will pay you a percentage every month just for holding on to their shares. These companies usually pay out quarterly which is about every 3 months. Up until this point whenever a company paid you a dividend on Robinhood, the money would just sit in your account until you withdraw it or save up enough money to buy a whole share again. Robinhood is looking to streamline that process for us through DRIP. Now, whenever you are paid a dividend the funds automatically get reinvested in your stocks. Dividend reinvestment is a great way to take advantage of compound interest and the fact that Robinhood is now offering it has got me really excited!

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#1 Robinhood in 2020? Best trading Platform is an episode from The Talk by Jean Point.

This episode is 00:17:56 long.

This episode was published on Dec 15, 2019.

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