How is Robinhood For Day Trading:
Robinhood is a brokerage firm that aims to capitalize on the massive, untapped market of Millennial investors. As a whole, the Robinhood team believes that the markets should be accessible to everyone, and they “put their money where their mouth is” by not requiring minimum deposits or charging commission fees. Those who sign up can literally start trading with any dollar amount they want and not have to deal with commissions cutting into their profits. As a trader or investor who executes a lot of orders, this can have a major impact on your bottom line and ultimately be the Difference Between Profit and Loss in Your Portfolio.
Individuals with a Robinhood account are able to make self-directed trades through the mobile application. Users can buy and sell stocks using market orders, limit orders, and stop losses. Short Selling and Options aren’t available within the platform at this time. Altogether, the app itself is sleek and simple, providing just the right amount of information to be taken in at a glance. And although the advantage of not having to pay commissions might be optimal in order to reduce trading expenses, the lack of capabilities when it comes to research and tools (compared to Full-Service Brokers) might not necessarily be worth it. In the end, the stripped down features are both a blessing and a curse – the simplicity of the platform makes it extremely easy to understand and execute orders, but the lack of tools like Level II isn’t ideal for active day traders.
I personally use Robinhood for over 99% of my trades as a Swing Trader (typical hold times of at least a few days to a few weeks, sometimes longer). But if I was focused more on day trading (buying and selling positions within the same day), I’d probably use a platform like E*Trade or Fidelity as my preferred broker due to the robust research and scanning tools they can provide in comparison.