Chapter · Master Robinhood
What Robinhood is
Robinhood is a US investing app founded in 2013 by Vlad Tenev and Baiju Bhatt, with the phone app launching in 2015. Its big idea was simple: let people buy and sell stocks with no per trade commission, from a clean and beginner friendly app. Today it also offers ETFs, options, and crypto. This chapter is educational and not financial advice. We will explain how the app works, how it earns money, and how to use it without getting burned. 🏹
Free to play. No ads, no token, no account needed to start.
What you get asked
What was Robinhood's original headline feature?
Robinhood made its name on commission free trading. Before it, brokers often charged a fee per trade. That does not mean trading is free of all cost or risk, as later lessons show.
Robinhood is a brokerage ___ that lets you buy and sell investments from your phone.
Robinhood is a brokerage delivered as a mobile app. A broker is the middleman that places your buy and sell orders in the market on your behalf.
Match each Robinhood fact to what it means
Robinhood is young, mobile first, and broad in what it offers. Each trait shaped how millions of new investors got started.
Which statement about this chapter is accurate?
Our goal is understanding, not hype. We explain features and controversies honestly so you can decide for yourself. This is education, not a recommendation.
The rest of this chapter
Learn how Robinhood works, how it makes money, and how to trade with discipline instead of hype.
- If it is free, how does it earn?
- Payment for order flow
- Interest and Robinhood Gold
- Order types explained
- Fractional shares and recurring buys
- Margin and the danger of leverage
- Options and their hidden dangers
- The GameStop episode of 2021
- Safety, gamification, and settlements
- Crypto, retirement, and cash features
- Becoming a disciplined investor