What Is Robinhood and Why I Use It
I’ll be straight with you—I didn’t grow up knowing a thing about the stock market. The idea of “investing” sounded like something rich people did after golf. But that all changed when I found Robinhood, an app that basically hands investing power to normal folks like us.
Robinhood is a commission-free investing app that makes it insanely easy to buy stocks, ETFs, and even crypto—all from your phone. No confusing dashboards. No minimums. Just plain, simple investing.
What really got my attention though? They give you a free stock just for signing up and linking your bank account. Yup—just by creating an account through a referral, I got a free share worth a few bucks (some people score even more). It felt like I was being paid to start learning how to grow my money.
This app was the first thing that made me think, “Hey, maybe I can do this.” And now? I use Robinhood all the time to manage part of my portfolio. It’s become a tool I wish I had found years earlier.
Related: If you want to start even smaller, here’s how I began investing with just $10. It doesn’t take much to get moving.
Can You Really Get a Free Stock for Signing Up?
Short answer? Yes—and I’ve done it.
When I joined Robinhood, I signed up through a referral link and within minutes, I had a free stock sitting in my portfolio. You won’t know what stock you’re getting—it could be a $3 stock or something worth $20+—but it’s real and it’s yours to keep.
Here’s the scoop:
- Click the referral link
- Create your free account
- Link your bank (don’t worry, it’s safe and encrypted)
- Claim your stock!
That’s it. No deposit required. You just have to sign up and connect a bank to verify your identity.
If you’re ready to give it a go, click here to join Robinhood and claim your free stock. This link takes you to my personal referral where we both get a reward—it’s a win-win.
And yes, I kept my free stock. I watched it grow, and that tiny boost gave me the confidence to buy more over time.
How to Set Up Your Robinhood Account in 5 Minutes
I’m not exaggerating when I say you can go from curious to investor in under 5 minutes. Setting up Robinhood is faster than ordering a pizza—and honestly, more satisfying.
Here’s exactly what I did when I joined:
1. Download the App
I grabbed it straight from the App Store. You can also use the desktop version, but I prefer the app—it’s clean, simple, and easy to check throughout the day.
2. Create Your Account
You’ll enter your name, email, and a strong password. Then they’ll ask for basic identity verification info:
- Your address
- Date of birth
- Last four digits of your SSN (this is required by law for investment platforms)
3. Link Your Bank
This is the part where some people get nervous, but I had zero issues. It connects securely using a service called Plaid, and I was able to instantly link my checking account.
4. Claim Your Free Stock
As soon as I finished setting up, Robinhood notified me that my free stock was ready. I tapped “Reveal” and boom—my first share was in my portfolio.
If you use this link to sign up for Robinhood, you’ll go through this same quick process and grab your free stock too.
Pro Tip:
Once you’ve got your account set up, you can start exploring fractional shares—buying tiny pieces of big-name companies like Apple or Tesla, even if you only have $1 to invest.
What Can You Invest In on Robinhood?
Robinhood isn’t just for stock market pros—it’s built for people like you and me who just want to start somewhere.
Here’s what you can invest in on the platform:
1. Stocks
From big names like Amazon and Google to penny stocks, Robinhood gives you access to thousands of options. And you can buy partial shares, which is a game changer when you’re starting with less cash.
2. ETFs (Exchange-Traded Funds)
These are great for beginners. Think of ETFs like baskets of stocks—instant diversification without needing to handpick individual companies.
3. Crypto
Yep, Robinhood lets you buy and sell crypto too. Bitcoin, Ethereum, Dogecoin… it’s all there. No separate app needed.
4. Options (for advanced users)
I’ll be honest—I didn’t touch options until I felt more confident. But they’re available when you’re ready to learn more advanced strategies.
Want to dig deeper into how I started small and learned as I went? Check out my real-life guide to investing when you’re broke. That article walks through how I built my confidence and portfolio from scratch.
How I Started with Just a Few Dollars
One of the best parts about using Robinhood is that you don’t need to be rich to get started. I was literally sitting on my couch, looking at my bank balance (which wasn’t impressive), and wondering if I’d ever be able to invest like the people I saw on YouTube.
Robinhood made it possible.
I started by putting just $20 into my account—no pressure, no huge commitment. Then I started investing in fractional shares. Instead of needing hundreds of dollars to buy Amazon or Tesla, I just bought $5 worth. That’s it. Robinhood shows you how much of the stock you own, and it updates in real-time.
Why starting small worked for me:
- It lowered the pressure and fear
- I got to practice real investing without risking much
- I started learning by actually doing it, not just reading about it
If you’re in that “I want to invest but I’m broke” mindset, you’ll want to check out these beginner investing tips I put together from my own experience.
And seriously, even just $1 on Robinhood can get you started. That’s less than your coffee.
Is Robinhood Safe? What You Should Know
This was one of my first questions before I signed up. Let’s be real—when money is involved, you want to know your cash isn’t going to disappear into the internet.
Here’s what I found out (and why I’ve trusted Robinhood ever since):
1. SIPC Insurance
Robinhood is a registered broker-dealer and your account is protected by SIPC (Securities Investor Protection Corporation) for up to $500,000, including $250,000 in cash.
That doesn’t mean your investments are guaranteed (stocks can go up or down), but it does mean your funds are protected if the brokerage fails.
2. Data Encryption
They use bank-level security and encryption to protect your info. I’ve never had an issue with security or sketchy logins.
3. Trusted by Millions
Over 20 million people use Robinhood. That alone gave me confidence. If something shady was going on, trust me—Twitter would have exploded.
4. Still… Do Your Homework
No app is perfect. Robinhood has had outages in the past during peak trading times, which can be frustrating. But for beginners looking for an easy, low-cost entry into investing, it’s still my go-to.
If you’ve ever wondered if it’s safe to start small, just know—I’ve been doing it for years now, and I haven’t looked back.
How Robinhood Helped Me Build Better Money Habits
Before Robinhood, I used to think of investing as something you did “someday”—after you had a six-figure income and a fancy financial advisor. But once I started using the app, I realized it’s more about habits than how much money you have.
Here’s how Robinhood shaped my financial mindset:
- I started checking the market daily—not obsessively, but enough to stay informed
- I began putting a few bucks aside each week to invest, instead of blowing it on junk
- Watching my stocks go up (and yes, sometimes down) gave me a real understanding of risk and reward
- It made me want to learn more about finance, saving, and long-term strategy
It wasn’t long before I was diving into topics like how to make extra money without a second job—because I realized more income = more money to invest.
Robinhood turned me from a “maybe later” investor into someone who feels confident and in control. And that alone has been priceless.
Who Robinhood Is (and Isn’t) Good For
Alright, let me keep it real: Robinhood isn’t for everyone—but it’s absolutely perfect for certain people.
Who I think it’s great for:
- Beginners who want to start investing without feeling overwhelmed
- Anyone who wants commission-free trading
- People who like to use their phones for everything (because the app is super user-friendly)
- Folks with small amounts of money to invest
- Those who want to try their hand at stocks, crypto, and ETFs—all in one place
Who it might not be ideal for:
- Advanced traders who want in-depth technical analysis tools (Robinhood’s features are more basic)
- People looking for retirement-specific accounts like IRAs—though Robinhood has started offering those too
- Anyone who can’t handle a little volatility. This is still investing—we’re not talking savings accounts here.
If you’re someone who’s still not sure where to start, you might also want to look into other passive ways I’ve made money, like getting paid to do almost nothing—because yes, that’s real too.
How to Use Robinhood Features to Your Advantage
Once I got my feet wet, I started exploring more of what Robinhood had to offer—and I quickly realized there’s way more here than just buying a few stocks.
Here’s how I make the most of it:
1. Set Up Price Alerts
Robinhood lets you set alerts for when a stock hits a certain price. This helps me stay on top of deals without constantly watching the app. When Apple dips? I get a ping and decide if I want to snag a slice.
2. Use the Recurring Investment Feature
This one’s huge. I set up automatic weekly investments into companies I believe in. Whether it’s $5 or $50, it adds up—without me needing to remember.
3. Explore the Learning Center
They’ve got a built-in education hub full of short articles that explain investing concepts in plain English. I’ve used this to brush up on things like dividends, stock splits, and ETF benefits.
4. Earn Interest on Uninvested Cash
Robinhood Gold offers this feature—if you upgrade, your cash earns interest while you wait for your next move. It’s not for everyone, but if you’re keeping cash in the app, it’s worth looking into.
If you’re more of a hands-off person and want something that just does it for you, I also use Acorns—which rounds up my spare change and invests it automatically. Great combo with Robinhood, in my opinion.
So…. Is Robinhood Right for You?
Here’s my honest take—Robinhood helped me go from clueless to confident without needing a finance degree or a huge pile of cash.
It’s not perfect, and it’s not the only tool I use now, but if you want to:
- Learn by doing
- Start investing with as little as a few bucks
- Get a free stock for signing up
…then it’s one of the easiest ways to begin.
You can sign up here and grab your free stock. It’s quick, secure, and takes almost no effort—but it might just be the smartest financial move you make today.
And once you’re in, come back and check out my favorite investing tips for broke beginners. Because we’re all about growing money the smart way around here.
