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Warrior Trading // Ross Cameron // Day Trade Warrior

All right. So as many of you guys know, we do warrior trading reviews where we review various tools and software the traders like ourselves use on a near daily basis. So today I want to do a little Robin Hood review where we talk about the Robin Hood app now I've had tons of traders ask me questions about this app. the way it works.

it's a it's an iPhone mobile app that you can download and it allows you to trade commission free. That's that's the whole advertising that they're running. Robin Hood is a free no Commission's broker. So what does that mean for a day trader? Well, I gave them one point five out of five stars.

I Actually don't think this is a good broker to use if you're an active trader. I In my opinion I Think what they did is they sacrifice features that have been standard on many brokers, almost every other broker for years and years in exchange for zero commissions. You know, if you're going to try to cut costs, you have to cut some of the value, some of the features and so that's essentially what they did. Now, when we first reviewed this this app, there were a couple of key points that I brought up as being the primary drawbacks with using the Robin Hood app.

Now the first one is the fact that you have no leverage. Now that means for those of you who aren't familiar when you're trading on leverage for you know, Speed Trader Etrade Ameritrade Any of those accounts you put in twenty five thousand dollars and you're given a hundred thousand dollars in buying power. And that leverage allows you to trade with larger size. Now of course, there's risks risks that come along with that.

You know when you trade a fifty thousand dollars, but you only have twenty five thousand in the account. If you lose 40, then you know you're in debt to the broker. But trading on leverage is something that a lot of day traders do, and the fact that you don't have that option has always been a real problem for me. Now they have since this original review developed a margin trading and leverage system where they will give you leverage, so that has been addressed.

My second issue is the fact that this is a mobile app only. So as you guys know, when you're a very active trader, you need to be able to move quickly, you want to be able to use hotkeys, and if we look at some of the moves that we've seen even just today in the market, we have stocks. You know, Dr. Ys that in the period of four minutes at the market open, this stock went from $14 up to 1650 and then all the way back down to 12 66.

That's volatility. but right, there is an opportunity for day traders to potentially book some serious profits. The problem is when you're trying to do that all from a mobile app, it's too cumbersome, It's clumsy, so you know you have to go in. You press the buy, then you go to a confirmation window.

You press confirm and then it sends your order. You come back. You know you're just so disconnected from what's happening in real time. It's almost like trading blind.
Now, the second problem is the fact that when you're executing these trades on the mobile app, you don't have level 2. Level 2 is right here. The level 2 in the time and sales. This shows us the market depth.

So we look at a stock like you know. SPU For instance, you can see the price is 693 by 694 right? And you can see how many shares, how many buyers are stacked up here on the buy side, and how many are stacked up on the sell side. Now if you look at a stock, let's just say for instance, Sprint, you know we pull this stock up. Well, this has you know, tens and tens of thousands of shares sitting on the ask.

Now when you're not seeing level two, you're only seeing the current bid. The current asked. You're not going to be able to understand how how thickly traded some of these stocks are. This, for instance, is a stock that really doesn't move at all.

Where's the stock like? Gale for instance, which is on our hide a scanner. Just move from 360 to 430 and you can look at the spread. So you've got 24. by 33, you've got a bigger spread and you draw conclusions just by looking at the level.

-. So when you lack level - in my mind, it's kind of like trying to drive a car with one eye closed. You can do it, but is dangerous. It's risky, and there's really not a single good reason you shouldn't just open your other eye, right? Why would you choose to, you know, handicap yourself as a driver.

Nobody would do that, but unfortunately, when you trade with Robin Hood if you're trying to be an active day trader, you will be handicapping yourself. Now, along with the when we first did this review, the fact that you could not have leverage, they also didn't allow you to short stocks, so that again restricted you to only trading on the long side. So the combination of no leverage, mobile app only, no level, - no time in sales and no short selling to me made this sort of like half of a regular broker account. It's not.

It doesn't have all the features that have been standard in every other brokerage firm for years and years. and years. So yes, you don't pay commissions. But on the other hand, making money as a trader is all about being quick, knowing how to capitalize on opportunities.

Get into these stocks quickly, book your profits, and get out of the way. And when you're fumbling around with your iPhone app or whatever it is, you know you can't see the level - you're just you're at such a disadvantage. Odds are more successful traders with better tools are going to beat you at this at this game and you don't want to be on the losing side. So my two cents is that this is not a good app if you are an active day trader.

Now if you're a swing trader, if you're trading on long term timeframes, then that may be a different story. Alright, so and you guys can read this whole review of course on our website where you're trading and you can email me any feedback that you have Ross at Warrior Trading Comm. Hey, don't forget, if you subscribe to our channel, you'll get alerts when we upload new content including my legendary life with Ross videos or my midday market recaps. So don't forget, subscribe to our channel and we'll see you again soon.
You.

By Stock Chat

where the coffee is hot and so is the chat

31 thoughts on “Robinhood app review: the true cost of free trades”
  1. Avataaar/Circle Created with python_avatars Casper says:

    You’re changing my life Ross

  2. Avataaar/Circle Created with python_avatars Waterfall says:

    i think you can also use the website on your computer, not just the app

  3. Avataaar/Circle Created with python_avatars Gary McConnell says:

    Always great content ! Could you advise what broker to use as a Canadian day trader ? popular opinion is Interactive Brokers, but you have had a bad experience with. Appreciate any assistance you could offer.

  4. Avataaar/Circle Created with python_avatars Nathan Wofford says:

    The newer version shorts and is much better. Still waiting for level 2's. But for what it is it's awesome and you can start with no money after you sell the free stock it comes with.

  5. Avataaar/Circle Created with python_avatars Matt Alonso says:

    Hey Ross! Robinhood now has a web version, and has updated quite a lot. Any chances of reviewing it again?

  6. Avataaar/Circle Created with python_avatars Jason says:

    Why not just use think or swim to check level 2 and charts while having RH app open? For most smaller accounts, suretraders really high commisions is too high to survive, eating 40% of a trade in commissions is not the way to go :/

  7. Avataaar/Circle Created with python_avatars wydopnthrtl says:

    As of Jan 2018 some of the things you said are not accurate. Margin is available for a monthly fee (but not smart for the beginner IMO). Day trading and not quick.. I'm finding it to be right in step with what I can see on the computer. When day trading I make the buy then immediately start the sell. I can watch the price live and as soon as I see my target price I swipe up the confirm and it sells. Now I'm sure it's not as good as something like TC2000 but for a guy who works a full time job and does swing trading and the occasional day trades its a very good tool. For a full time day trader I agree its not a good tool. But this program (which you can use on your computer too) is an excellent tool for the beginner.

  8. Avataaar/Circle Created with python_avatars Marc8 says:

    Do you have any opinions on suretrade or ustocktrade?

  9. Avataaar/Circle Created with python_avatars Sky Pilot says:

    Well said –

  10. Avataaar/Circle Created with python_avatars Spec trum says:

    Hello !

    Can you please tell me, If i Can use RobinHood in Pakistan to trade?

    because Robinhood Application doesnt support Pakistan and i want to know if i there is any way around restriction

  11. Avataaar/Circle Created with python_avatars Ric Knight says:

    So these "features" are worth 7 dollars everytime u buy and 7 everytime u sell if not more? Id rather make 70 dollars on a stock on robinhood than make 56 somewhere else

  12. Avataaar/Circle Created with python_avatars Ralph Garnier says:

    What are some tools and/or softwares I need for daytrading

  13. Avataaar/Circle Created with python_avatars Chicken says:

    RH is good for new traders…. and smart traders. You can use other resources to get faster information, true, but you can also take advantage of limit orders and such. Stop losses currently aren't as reliable as limit orders, so they say. But yeah, If I see a stock that is showing steady oscillation between support and resistance, i will set a limit order at the bottom and a limit sell near the top. Its slow going, but ive shown consistent gainz. But for real im moving on. Im going to try suretrader.

  14. Avataaar/Circle Created with python_avatars SanityLoss says:

    Anyone know if the warrior tradin simulator can pull recorded data for paper trading? Looking to use it in the evening times.

  15. Avataaar/Circle Created with python_avatars Karol Michalewicz says:

    The strategy is thinkorswim as the platform, and robinhood just for executions.

  16. Avataaar/Circle Created with python_avatars Badass Rockets says:

    invest in a mic

  17. Avataaar/Circle Created with python_avatars Techno Tard says:

    You can use RH for intraday daytrading if your style is bidding on the trend. Not for the major momentum though. No short selling sucks and too many confirmation windows.

  18. Avataaar/Circle Created with python_avatars Jason Kano Karoke says:

    I like Robinhood, it is a good way of trading stocks without paying the pimp

  19. Avataaar/Circle Created with python_avatars RickySmiles says:

    Hey WT Love the videos. I just wanted to say to all the new traders the Robin hood Application was never intended and they never marketed this app as a Day trading fast pace trading platform. like other users have said this app is for someone with a few hundred dollars or few thousand to invest in Blue Chip stocks in the long term.

  20. Avataaar/Circle Created with python_avatars Dannys Perez says:

    Yes that true, but for a beginner is the best swing trader platform.. i do alot of daytrades to. I havent had a problen yet. Having a lvl 2 its better.. that why o do all my chart analysis in a real platform like tdameritrade but i do my trade on robinhood..

  21. Avataaar/Circle Created with python_avatars Sa1sa says:

    Would this app be good for a non day trader / a dividend investor

  22. Avataaar/Circle Created with python_avatars Best of The Best says:

    my friend this RH app is good for beginners because not every body can start with 25k in account i don.t think when you start trading you did start with that huge amount of money , so this app comes to make difference against all other brokerages .

  23. Avataaar/Circle Created with python_avatars robert mccully says:

    How much do you pay in commissions a month verses profit? 1 to 1 10 to 1 100 to 1 Have you figure that out?

  24. Avataaar/Circle Created with python_avatars sabz4321 says:

    You didn't mention all the glitches and bugs that take weeks to be addressed and horrible customer service. You run into a problem because of a "bug" in their system and it takes them 3 days to get back to you and another 5 days to (maybe) do something about it. Meanwhile, you're helplessly sitting on your ass seeing your money disappear. I have lost 10 years worth of commission just because of the glitches in this "free" app. They don't understand that it's people's real money they're handling. It might be useful for people who invest on very long time scales.

  25. Avataaar/Circle Created with python_avatars Eric Jimenez says:

    optionsxpress!

  26. Avataaar/Circle Created with python_avatars ** says:

    can you review trade king? thinking about making the change. I don't day trade though. just want it for swing trades

  27. Avataaar/Circle Created with python_avatars Jared Greenlaw says:

    could you please do a review on Trade Zero

  28. Avataaar/Circle Created with python_avatars 24October 2016 says:

    Warrior Trading You should do a review of TradeZero ! 🙂

  29. Avataaar/Circle Created with python_avatars skullbasher23 says:

    If you're depending soley on RB to trade then disaster is imminent. I use it to execute trades and that's about it. I still use 3rd party sources for lvl2 and chart data. If there's one thing I've learned, it is how much of a disadvantage commissions are for smaller accounts. It really puts the odds against you.

  30. Avataaar/Circle Created with python_avatars Martin Ivan says:

    You forgot to mention that Robinhood has much wider spreads than other brokerages, even for liquid markets. Just that may end up costing you much more than a standard brokerage's fee.

  31. Avataaar/Circle Created with python_avatars Reno Videos says:

    they were some changes. now you can have leverage if you paid mothly a small amount… is called Robinhood Gold

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