Robinhood changed the investing landscape by introducing commission-free trading, making it easier for beginners to enter the stock market. However, in 2025, with increased competition, regulatory scrutiny, and evolving features, is Robinhood still the best platform for traders and investors? This in-depth Robinhood review 2025 explores the platform’s pros, cons, fees, features, and whether it remains a worthy choice.
What Is Robinhood?
Robinhood is an online brokerage that allows users to trade stocks, ETFs, options, and cryptocurrencies with zero commissions. Unlike traditional brokers that charged high fees, Robinhood disrupted the industry by pioneering free trading. This move forced major firms like Fidelity, Charles Schwab, and TD Ameritrade to follow suit.
Despite its popularity, Robinhood has faced criticism over trade restrictions, limited investment options, and customer service issues. The platform has introduced new features to address these concerns, but how does it hold up in 2025?
Robinhood’s Key Features in 2025
1. Commission-Free Trading
Robinhood still offers 100% commission-free trading for stocks, ETFs, and options, making it one of the most affordable platforms for beginner investors. While most brokers have also eliminated commissions, Robinhood remains competitive by offering additional perks.
2. Cryptocurrency Trading Without Fees
Unlike exchanges such as Coinbase and Binance, which charge transaction fees, Robinhood allows users to buy and sell cryptocurrencies with zero commission. However, Robinhood doesn’t support transferring crypto to external wallets, limiting its use for serious crypto investors.
3. Robinhood Gold and Margin Trading
Robinhood Gold is a premium subscription service that provides access to:
- Margin trading (borrowing money to trade).
- Research reports from Morningstar.
- Higher interest rates on uninvested cash.
- Level II market data for more detailed stock pricing information.
Robinhood Gold costs $5 per month, which is relatively affordable compared to competitors. However, margin trading carries risks, and beginners should be cautious.
4. New IRA with a 1% Match
A significant addition in 2025 is Robinhood’s IRA with a 1% match, meaning the company contributes 1% of every deposit you make toward your retirement account. This feature is unique among brokers and makes Robinhood a more attractive option for long-term investors.
5. Fractional Shares
Robinhood allows users to invest in fractional shares, meaning you can buy a portion of expensive stocks like Amazon or Tesla with as little as $1. This makes it easier for investors with small budgets to build a diversified portfolio.
6. Cash Card and Interest on Uninvested Cash
Robinhood offers a cash management feature, allowing users to earn interest on uninvested funds. The Robinhood Cash Card also provides cashback rewards, similar to a debit card.
7. Beginner-Friendly Interface
Robinhood’s simple and intuitive interface is one of its biggest advantages. The app is designed for ease of use, making it ideal for beginners who may find traditional brokerage platforms overwhelming. However, the lack of advanced trading tools makes it less appealing to experienced traders.
How Does Robinhood Make Money?
Despite offering commission-free trading, Robinhood generates revenue through various means:
1. Payment for Order Flow (PFOF)
Robinhood earns money by routing trades through specific market makers who pay the platform for order execution. This practice has faced regulatory scrutiny, as it may lead to slightly worse trade execution prices.
2. Robinhood Gold Subscription
Robinhood Gold subscribers pay $5 per month for premium features like margin trading, research reports, and higher interest rates on uninvested cash.
3. Interest on Uninvested Cash
Robinhood earns interest on users’ uninvested cash, similar to how banks profit from deposits.
4. Margin Interest
If you use margin to trade (borrowed money), Robinhood charges interest, generating revenue from active traders.
5. Securities Lending
Robinhood lends out stocks held in user accounts to institutions and earns a lending fee, similar to other brokers.
Pros and Cons of Robinhood in 2025
✅ Pros:
✔ No commissions on stocks, ETFs, options, and cryptocurrency trades.
✔ Beginner-friendly interface that makes investing easy.
✔ Fractional shares allow users to invest in expensive stocks with small amounts.
✔ 1% IRA match, which is rare among brokers.
✔ No account maintenance fees.
✔ Instant deposits allow you to start trading immediately.
❌ Cons:
❌ Limited investment options (no bonds, mutual funds, or futures).
❌ Poor customer service with long wait times.
❌ No advanced tools for technical analysis or active trading.
❌ Past reliability issues—including freezing trades during the 2021 GameStop and AMC short squeeze.
Is Robinhood Still Worth It in 2025?
Robinhood remains a strong choice for beginner investors, thanks to its free trading, easy-to-use interface, and new IRA match feature. However, for active traders and professionals, platforms like Fidelity, TD Ameritrade, or Interactive Brokers may offer better charting tools, execution speeds, and customer support.
✅ Who Should Use Robinhood?
- Beginners looking for a simple, commission-free platform.
- Long-term investors who want to invest in stocks, ETFs, or IRAs.
- Crypto investors looking for fee-free trades.
❌ Who Should Avoid Robinhood?
- Day traders and swing traders who need advanced trading tools.
- Investors looking for mutual funds or bonds.
- Users who prioritize strong customer service.
Alternatives to Robinhood in 2025
If Robinhood doesn’t meet your needs, consider these alternatives:
1. Fidelity – Best for long-term investing and research tools.
2. TD Ameritrade – Excellent for active traders with advanced charting tools.
3. Interactive Brokers – Best for professionals and international investors.
4. Webull – A great alternative for commission-free trading with better analysis tools.
Final Verdict: Should You Use Robinhood in 2025?
Robinhood remains one of the best platforms for beginners, thanks to its free trading, IRA match, and ease of use. However, advanced traders may prefer other brokers with superior tools and execution speeds.
If you’re looking for a simple, low-cost way to invest, Robinhood is still a top choice in 2025. But if you need more research tools, better customer support, or a wider range of investments, you may want to explore other options.
Would you still use Robinhood in 2025? Let us know your thoughts!
