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.

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.

If you liked this article you might like

Meal Kits Are Hot, and Weight Watchers May Be Next to Try Them

This Is How to Avoid Becoming Amazon Roadkill

Toys 'R' Us Bankruptcy Filing a Reminder That Amazon Is Crushing Everyone

Stocks on Track for Records Even as Trump Goes After North Korea

Cramer: How to Avoid Being Amazon Roadkill