Today is the day!!!

If you're sick and tired and giving a portion of your profits to your broker as a trade commission today's post is for you!

I'm in the process of moving my trading from ThinkOrSwim to Robinhood. 

Robinhood came out in 2013 as the first commission free stock broker. The caveat was that you had to buy and sell using their phone app. 

Recently they made two big announcements that convinced me to switch.

1. They released a desktop platform. 

2. They announced commission free options trading (still only available on app but will be on desktop soon). 

Here's a quick review of Robinhood for Desktop. During the video I placed a GTC limit order on FB and with the recent pull back in the stock I got filled at a great price. 

In a future blog I'll do a review of their options trading on my iPhone. 

How to Get Signed Up for Robinhood?

I'm still in test mode and so I'm reccomending everyone at WallStreet.io do the same. 

Please use my link below, if you sign up and fund an account we both get a free stock. 

Click HERE to Use my Link and Get Started with Robinhood Zero Commission Trading

You only need to fund your account with a couple hundred bucks (like I did). The main idea is to test it out and see if it will work for you!

Also, I'd like to see everyone use my link so that we make a big splash with Robinhood. I want them to know who WallStreet.io is and the best way to do that is to get our community to sign up for accounts there using my link. 

Simple and Easy to Use -  My Review!

They've done a great job keeping everything simple and easy to use. The iPhone app and their Desktop Platform both have clean design and are intuitive to use.

I like this because it only takes a few minutes to get up to speed. I recommend getting started by just poking around like I did in the video above. 

What Kind of Option Trades Can I do?

Here's a note from Robinhood about this...

"At Robinhood, customers who are given a Level 2 designation can execute the following options trades:

• Long Calls, Long Puts
• Covered Calls
• Cash-Covered Puts

Customers assigned a Level 3 designation can execute all of the above trades, along with the whole collection of fixed-risk spreads, including Iron Condors, Iron Butterflies, and Credit Spreads."

How to Get Options Trading Turned On?

I had a Robinhood account for a few years but never used it. As soon as they released their desktop platform I logged in, and placed that FB GTC order. Once it filled I got an email from Robinhood a few minutes later letting me know they have opened my account for Options Trading (you also have to get on their waiting list for options trading, which is free). 

So... I'm guessing that they are opening option trading to people who are actively buying stock on their platform. I'd reccomend funding an account with this link, then buying one stock with it. This shows Robinhood that you're active and they will likely open up options trading for you. 

Option Trading on their Desktop Platform!

Right now option trading is only available on their mobile platform. That being said, I'm guessing they are very close to releasing option trading on their desktop.

How Does Robinhood Make Money?

Robinhood does not charge for commissions so how do they make money? 

They earn a little interest on your account, kind of like a bank does. They also have a premium version that gives you access to more margin. Here's the official quote from Robinhood about it...

"With Robinhood Gold you get up to 2x your buying power and access to after hours trading for as little as $6 per month. This is the only product Robinhood charges you for, and is completely optional. Trading is still commission free.

Additionally, Robinhood earns revenue by collecting interest on the cash and securities in Robinhood accounts, much like a bank collects interest on cash deposits."

The Future of Trading and Commissions

Robinhood was started by two guys who worked for a big WallStreet bank. While building the electronic systems for trading they realized that the acutal cost of making a trade was zero. 

And that brokers charge outrageous commissions to pay for sales teams, big expensive buildings and redicuouls CEO bonuses. 

So... they built Robinhood. 

I personally believe that this is the future. Any broker that charges commissions on trades is on the wrong side of history. This may take a few years to play out but I think it will happen.

How Much Money Will You Save?

Here's an example of why I'm so excited....

I love doing spreads and butterflies. Right now ThnkOrSwim charges me $1 per contract. If I do a AAPL butterfly with 10 contracts (10,20,10) that's $40 to get in and another $40 to get. I've just paid $80 in commission. With Robinhood, this trade will be free.

Let me know in the comments below... How much will you save every month/ year if you didn't have to pay commissions?

Thanks in adance!

Trade Safe,

Micah