Robinhood, which boasted over 6 million subscribers by the end of last year, is a financial investment company that offers users the ability to make free trades. Its drastic rise in popularity suggests that virtual financing could be a wave of the future, particularly for investors.
The potential for this type of financial experience is immense. However, some challenges need to be aired out for a more seamless user experience.
A limited scope of integration
Robinhood’s lack of integration with other personal finance management apps such as Mint is not ideal for people who do not have the time or ability to carry out multiple aspects of managing their finances.
It can be very time consuming to manually integrate your credit cards, banks, brokerage and other relevant financial services. It could also be the marginal difference between success and failure.
The underlying cost of free trades
The allure of free trades is bound to attract some consequence for customers. While other brokerage service providers may offer returns on profits to their customers, which are identified as interest payments, Robinhood retains these returns as payout for the commission-free trades.
Your ability to grow your portfolio will be limited on the platform because you may not be able to access interest payments. Still, the potential for free trades could be too big to pass on.
Inefficient customer service
The customer service options of this platform do not match up to its efficient and modern approach to investing. Users have complained of extended waiting times, with lengthy queues and a general lack of urgency.
It can be a tough platform for people who are experiencing some type of problem since the waiting time could run well into weeks, due to the large number of requests made.
Limited assessment tools
While Robinhood started out with a limited number of chart and report options, the brand has increased the scope of investing by offering variety of data assessment tools. There are many heavily detailed charts and reports available through the platform.
However, these are still limited and do not offer customization for people who are looking to develop their own metrics of analysis. This reduces the ability of potential investors to research stock options before investing, which amounts to gambling instead of investing.
Delay in stock quoting
Your order will always be completed at the real-time prices displayed on your investment app, which allows for efficiency in the access to investing services. However, the investing app features delayed quotes.
You may not be able to grow your investment portfolio to your standards with the delayed quotes on offer by the platform.