This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Robinhood Opens Investing Doors to Wall Street's 'Hood

NEW YORK (TheStreet) -- As investors, we are always looking for the best broker to fit both our trading style and our wallets. Traditionally, young and small investors have had difficulty breaking into the investing world as a result of high transaction costs. Over the last few decades, as transaction costs have plummeted with the advent of technology, $10 a trade is arguably high for those trading low levels of capital.

As a college student, many of my friends are always asking how they can get involved in the markets. Many simply want to buy a few shares of their favorite brands or want to start saving. Unfortunately, many are deterred when I explain the standard commissions within the business. For those investing only a few hundred dollars at a time, fees make profitability significantly harder and expensive -- in terms of account value.

Typically, I lead these investors towards commission-free offerings such as exchange-traded funds offered by the array of brokerage companies, including E*Trade, TD Ameritrade, and Fidelity. However, this weekend I discovered an interesting new concept, and a company, looking to remove these hurdles for small and young investors.

The company, Robinhood, is a new startup brokerage with some strong equity backing. Based in Palo Alto, Calif., the company has attracted a number of prominent investors including Google Ventures, Social Leverage, and Andreessen Horowitz, to name just a few.

Must Read: [video] Jim Cramer Quick Take: Buy FedEx Ahead of Earnings

Founded by Vladimir Tenev and Baiju Bhatt, a couple of high-frequency trading engineers, they aim to bring a more efficient brokerage to a greater number of people. Based in technology, the company seeks to run a leaner version of the brokerage firms we know today. Robinhood will offer its users free trades, free market data, and require no minimum deposit -- all with standard SIPC insurance. Honestly, I could not imagine a better product for college students, like myself, looking to get started in the markets.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NKE $58.19 -1.56%
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs