Key takeaways
- Robinhood offers commission-free trading across stocks, ETFs, options and cryptocurrencies.
- The platform features an intuitive interface with customizable dashboards and advanced tools.
- Cryptocurrency trading on Robinhood is limited to crypto-to-fiat transactions; crypto-to-crypto trading is not supported.
- While implementing standard security measures, Robinhood has faced regulatory fines and data breaches.
Robinhood Markets, founded in 2013 by Vladimir Tenev and Baiju Bhatt, is a financial services company headquartered in Menlo Park, California.
Initially established to provide commission-free trading of stocks and exchange-traded funds (ETFs), Robinhood expanded its offerings to include cryptocurrency trading in February 2018, starting with Bitcoin (BTC) and Ether (ETH).
As of February 2025, Robinhood has experienced significant growth, with its stock price reaching $56.06. In the fourth quarter of 2024, Robinhood reported a remarkable 400% increase in cryptocurrency trading volume, reaching $70 billion.
Traditionally operating within the US and UK markets, Robinhood extended its cryptocurrency trading services to the European Union in December 2023, enabling users across member countries to trade a variety of digital assets.
Looking ahead, the company plans to enter the Asian market by late 2025, with Singapore as its regional base.
User experience
Platform accessibility
Robinhood offers a versatile platform accessible through multiple channels:
- Web platform: Users can access Robinhood’s services via most web browsers, providing a seamless experience for desktop users.
- Mobile applications: Dedicated apps are available for both iOS and Android devices. The iOS app supports devices running iOS 16 and newer, while the Android app is compatible with devices meeting Robinhood’s technology requirements.
- API access: In May 2024, Robinhood introduced the crypto trading API, enabling users to programmatically access crypto market data, manage portfolios and execute crypto trades. This feature caters to advanced users seeking automation and customization in their trading strategies.
Robinhood’s platform emphasizes a clean design, making it accessible to novice and experienced investors. Users can personalize their dashboards to monitor investments and market data that align with their interests.
For seasoned traders, Robinhood offers features like technical indicators and real-time data to facilitate informed decision-making.
Registration process
Creating an account on Robinhood is designed to be straightforward:
- Initial steps: Prospective users provide their email address, create a password and submit personal details such as full name, date of birth and residential address.
- Phone verification: A valid phone number is required for verification purposes.
- Social Security number (SSN): As part of regulatory compliance, users must provide a valid SSN. Robinhood ensures users understand this requirement by explaining its necessity during registration.
The third step of the registration process varies depending on the country of registration. For example, in the UK, a valid National Insurance (NI) number is required instead of a Social Security number.
Additionally, Robinhood implements a Know Your Customer (KYC) process. In the US, users must be at least 18 years old, possess a valid Social Security number and have a legal US residential address within the 50 states, Puerto Rico, or the US Virgin Islands. Exceptions may apply for active US military personnel stationed abroad.
Trading on Robinhood
Robinhood is often praised for its trading experience.
In October 2024, Robinhood introduced Robinhood Legend, a browser-based desktop platform designed specifically for advanced traders. This platform features customizable layouts, the ability to display up to eight charts simultaneously and technical indicators such as moving averages and Bollinger Bands.
Alongside its desktop platform, Robinhood has expanded its mobile app capabilities by introducing futures trading and index options.
Users can now trade various futures contracts, including those based on the S&P 500 index, oil and Bitcoin, with low fees and nearly 24/7 availability. The addition of index options provides traders with more diversified investment opportunities, enhancing Robinhood’s appeal among those looking for advanced trading instruments.
As of February 2025, Robinhood offers trading for over 30 cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Dogecoin (DOGE) and Litecoin (LTC).
The platform regularly updates its cryptocurrency offerings based on regulatory developments and market demand.
However, unlike traditional crypto exchanges, Robinhood functions as a brokerage, meaning users can only trade cryptocurrencies directly against fiat currencies, specifically the US dollar (USD).
Crypto-to-crypto trading pairs are not supported, so users cannot exchange one cryptocurrency for another within the platform.
Did you know? For deposits and withdrawals, Robinhood exclusively supports transactions in US dollars. Users can fund their accounts via bank transfers and use those funds to purchase cryptocurrencies.
Fees and execution
Robinhood is known for its commission-free trading model, meaning it does not charge explicit fees for buying or selling cryptocurrencies. However, users should be aware of the indirect costs associated with this model:
- Payment for order flow (PFOF): Robinhood generates revenue through PFOF, wherein it receives compensation from market makers for routing user orders to them. This practice can lead to potential conflicts of interest, as brokers might prioritize routing orders based on compensation rather than obtaining the best execution price for users.
- Spread costs: While there are no direct trading fees, the prices at which users buy or sell cryptocurrencies may include a spread. This means the purchase price could be slightly higher and the selling price slightly lower than the current market rate, indirectly affecting the overall cost of the transaction.
- Withdrawal fees: Robinhood does not charge fees for transferring cryptocurrencies to external wallets; however, users are responsible for any network fees associated with such transfers.
For trade execution, Robinhood mitigates the impact of market volatility by adjusting to limit market orders with specific collars. Buy orders are capped at 1% above the market price, while sell orders are limited to 5% below.
This approach helps ensure users receive executions close to the expected price, enhancing trade reliability.
Did you know? In cryptocurrency trading, PFOF rates are notably higher than in traditional equity markets, which can impact the prices users receive.
Security
Robinhood employs a combination of hot and cold storage solutions to safeguard users’ cryptocurrency assets, with the majority held in cold storage, completely disconnected from the internet to prevent unauthorized access.
A smaller portion of assets remains in hot wallets, secured with multiple layers of protection to support daily operations.
To further mitigate risk, Robinhood carries crime insurance underwritten by Lloyd’s syndicates, covering potential losses from theft, including cybersecurity breaches.
To enhance account security, Robinhood offers two-factor authentication (2FA), requiring users to enter a code from their phone when logging in from a new device.
Robinhood Crypto is licensed by the New York State Department of Financial Services to engage in digital currency business activity. However, the company has faced regulatory challenges in recent years.
In August 2022, Robinhood’s cryptocurrency division was fined $30 million for Anti-Money Laundering and cybersecurity regulations violations. More recently, in January 2025, Robinhood agreed to pay $45 million to settle charges from the US Securities and Exchange Commission (SEC) related to record-keeping, trade reporting and other compliance failures, including issues stemming from a November 2021 data breach.
This breach, in particular, exposed the email addresses of about 5 million customers and the full names of about 2 million users after an intruder impersonated a Robinhood employee.
Despite these setbacks, Robinhood continues to implement security enhancements and improve compliance measures to protect user assets and maintain regulatory standards.
Customer support
Robinhood provides customer support primarily through the following channels:
- Email support: Users can submit inquiries via email and receive responses from the support team.
- In-app help center: The platform offers an in-app help center with a range of articles and resources to assist users in resolving common issues independently.
Notably, Robinhood does not offer live chat or direct phone support, which can be a limitation for users seeking immediate assistance.
With regard to email support, reviews are mixed. Some users report receiving responses within one day, while others have experienced delays extending to several weeks.
Did you know? Robinhood got its name as a nod to the legendary outlaw Robin Hood, who “stole from the rich and gave to the poor.” The platform was designed to democratize finance by offering commission-free trading, giving everyone — regardless of income — a chance to invest without the traditional fees that could exclude smaller investors.
Additional services
While Robinhood doesn’t offer crypto-to-crypto trading, it has unique features that appeal to traditional and digital asset investors.
- Integrated stock and ETF trading: Unlike many crypto-only platforms, Robinhood allows users to trade stocks, ETFs, options and cryptocurrencies within a single, unified interface. This integration provides a seamless experience for users interested in diversifying their portfolios across different asset classes.
- Cash management services: Beyond trading, Robinhood offers cash management features, including a debit card linked to users’ brokerage accounts. This service allows users to earn interest on uninvested cash and access funds for everyday transactions, bridging the gap between investing and daily financial needs.
- Recurring investments: The platform offers features like automatic recurring investments, enabling users to schedule regular purchases of stocks or cryptocurrencies. This service supports dollar-cost averaging strategies, which can be beneficial for long-term investors.
- Fractional shares: Robinhood allows users to purchase fractional shares of stocks and ETFs, lowering the barrier to entry for high-priced assets and enabling diversified investments with smaller amounts of capital.
Final thoughts
Despite not being originally designed to handle crypto trading, Robinhood has successfully expanded its services to include cryptocurrencies, potentially making it the best non-crypto crypto exchange in 2025.
Still, while it excels at providing a user-friendly, commission-free experience, the lack of crypto-to-crypto trading and limited customer support options may be important factors for more advanced traders to consider.
As with any platform, users should weigh its features against their needs and investment strategies before committing.
FAQ:
1. What services does Robinhood offer to investors?
Robinhood provides commission-free trading for stocks, ETFs, options and cryptocurrencies. The platform also offers cash management services, including a debit card linked to brokerage accounts, allowing users to earn interest on uninvested cash. Additionally, Robinhood has expanded its services to the UK and the European Union, broadening its international presence.
2. How has Robinhood expanded its cryptocurrency offerings?
Since introducing cryptocurrency trading in 2018, Robinhood has expanded its offerings to include over 30 cryptocurrencies, such as Bitcoin (BTC), Ether (ETH), Solana (SOL), Dogecoin (DOGE) and Litecoin (LTC). In December 2023, the platform extended its cryptocurrency trading services to the European Union, reflecting its commitment to international growth.
3. What are the key features of Robinhood’s user experience?
Robinhood is known for its intuitive and user-friendly interface, accessible via web browsers and dedicated mobile applications for iOS and Android devices. The platform offers customizable dashboards, technical indicators, real-time data and, as of May 2024, a Crypto Trading API for users seeking automation and customization in their trading strategies.
4. What security measures does Robinhood implement to protect user funds?
Robinhood employs a combination of hot and cold storage solutions to safeguard users’ cryptocurrency assets, with the majority held in cold storage. The platform offers two-factor authentication (2FA) to enhance account security. Despite these measures, Robinhood has faced regulatory fines and security breaches, highlighting the importance of continuous improvement in security protocols.
5. How does Robinhood’s Payment for Order Flow (PFOF) model affect users?
Robinhood generates revenue through PFOF, receiving compensation from market makers for routing user orders to them. While this allows for commission-free trading, it may lead to conflicts of interest and concerns about the quality of trade executions, as orders might not always be executed at the best available prices.
6. What customer support options are available on Robinhood?
Robinhood provides customer support primarily through email and an in-app help center with a range of articles and resources. Notably, the platform does not offer live chat or direct phone support, which can be challenging for users seeking immediate assistance.
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