What is Robinhood?
Robinhood is an online trading platform that was founded in 2013 by Vladimir Tenev and Baiju Bhatt.
The free app allows users commission-free trades of stocks and exchange-traded funds and has grown to include cryptocurrency and banking.
Prior to Robinhood's release, it was common for other trading platforms to have minimum investment requirements and to charge every time a user made a trade. Robinhood felt these barriers were keeping out everyday people from investing.
The app grew in popularity during the COVID-19 pandemic as people stuck at home turned to amateur investing.
Due to its low fees and simple, colourful interface, the app has been largely targeted at younger investors.
How can I invest with Robinhood?
It's important to note that Kiwis can't use the Robinhood share trading platform to invest.
To open a Robinhood account you need:
- To have a US social security number
- A permanent US address
- To be a US citizen, permanent resident, or have a valid US visa
However, because Robinhood is a publicly listed company, you can invest in stocks of Robinhood through online trading platforms such as Stake and Sharesies, which allow you to invest in US markets.