Why pay E*Trade $8 to buy or sell a stock when you can trade for free on Robinhood? After two years of development, $16 million in funding, and 500,000 waitlist signups, Robinhood finally hits the iOS App Store today. Robinhood lets you track the performance of stocks, and buy or sell them with just a few taps at no cost.
The app could attract a younger, less wealthy demographic to the stock market because people can trade smaller amounts without having their potential earnings eaten up by the fees most brokerages charge. Instead, Robinhood makes money through interest on funds you hold with it or when you trade on margin, plus selling trade volume to stock exchanges.