There are many traders who want to know about the relationship between Forex and Robinhood.
No doubt, Robinhood has become the most popular way of investing in the stock market but it is no longer successful because of some wrong strategies.
But here is the most asking question: Can you trade Forex on Robinhood? It is difficult to find out the relevant answer to this query but not impossible.
We tried our best to figure out the correct answer….
It is impossible to trade Forex on Robinhood as both belong to different categories. Both of them have different characteristics, offers, and trading plans. You can select one of them, not both. Moreover, It has few account types, no more investing plans, poor services, and many more.
Why can’t you trade on Robinhood?
It is because it has many drawbacks and it never shows interest to correct these demerits in its system.
So, Forex gets preference over Robinhood and it is often recommended to trade with forex. This post will show some reasons to avoid Robinhood.
To know more about it, let’s start reading without wasting your time.
9 Main Reasons to Avoid Trading With Robinhood
Are you a trader? Do you want to trade with Robinhood? Before trading, it is important to know about the trading platform on which you are going to start trading…
There are 9 main reasons that show you why you should not trade with Robinhood. These reasons also display the drawbacks of this trading system.
Let’s explore them:
Free Trades Are Common
Many traders think Robinhood is good for trading as it provides a structure that is commission-free and charges no fee. But when you enter the trading market you can easily figure out many trading platforms that offer you a free-of-cost system to trade easily.
So, don’t be in a hurry to start trading with Robinhood without knowing about its other features. Not select any system only because of its commission-free structure.
It’s become a common characteristic of many brokers that they offer free-of-charge accounts to attract their clients.
That’s why we don’t recommend Robinhood for successful trading until you get deep info about this trading market.
Major Downtime Problems
There are many downtime problems in Robinhood during this year. These problems occur because of the global crisis.
Last year was a remarkable year for this market as during this year a number of successful recoveries were seen in the list of Robinhood. When the trading market may face issues like downtime problems, it is essential for the trader to get access to their accounts.
It is necessary for the investor to become able to save profit and reduce losses. It’s not easy to maintain your profit ratio in Robinhood, so it is not safe to trade successfully with this trading market.
It is not possible for a user to set a reasonable position in this field when he needs it most. That’s why it is best to switch off this broker immediately.
Stock Quotes Are Delayed
Another reason for avoiding Robinhood is its delayed quotes. When you go through the FAQs of Robinhood, you can notice that it has quotes related to real-time.
It is not completely true. There is always a delay in the charts and data that you see on the screen. This will create a hindrance for you to get in and out of trades efficiently. The noticeable factor to stop trading with forex is that the provider of Robinhood is very similar to other markets.
This process is very cheap and Robinhood saves money by doing so.
When you start trading with another Broker, you can check the difference by opening the stock of both apps.
Cryptocurrency Product Is Not Good
We are not trying to reveal the merits and demerits of Cryptocurrency. But we are doing our best to understand the ways where you may be able to trade Stock and Crypto in the same place.
There are some drawbacks of crypt currency products found in Robinhood. These issues are so big that it is recommended to adopt another platform for trading. Some demerits are listed below:
- In Robinhood, it is not possible to withdraw coins. When you have bitcoin you can’t transfer it to your own wallet.
- You can’t get access directly to your wallet address if you are using Robinhood.
- There is no service to get private keys for cryptocurrency access. If you don’t have private keys, it means there is no way to get coins. Crypto selection is very limited in Robinhood.
As you know, Robinhood provides you free accounts, how could it make money? It is Robinhood gold that helps it to make money to run its state.
What is Robinhood gold?
It is a type of subscription service that provides you with some extra features at a very low rate.
You can get the following services with it:
- Get access to professional research
- Margin investment
- Market data of level 2
- Large deposits
It looks like an attractive and reasonable package to start trading. But there is a trick to capture traders. These offers are just like salt in the sea.
It is the way to get more profit from new and inexperienced traders. So, try to find another broker who must be loyal to you.
Poor Customer Services
Robinhood has bad customer support. There are many complaints from customers that they have to wait to get an answer for their query for several weeks.
There is a long queue to talk to an expert for help. You may not get any response to your email and there is a lack of seriousness in solving your serious issues.
When you spend a lot of money, it is your right to have proper customer service that is always ready to help you in just a few minutes.
So, there is no compromise for customer help services.
Fewer Account Types
There are limited account types offered by Robinhood like Standard or Individual Investing accounts.
There is no facility to have a joint account, custodial, or trust account. A trader has no more opportunities to expand his trading platform for more profit. That’s why it is not good to trade with Robinhood for the long term.
It is ideal to trade with a broker who offers you non-taxable accounts and helps you create more accounts to trade more.
Fewer Investment Types
Robinhood allows you to invest only in four types of resources. It is not enough for a trader who wants to trade on a big platform.
It skips investments like foreign stocks, bonds, forex, and mutual funds, etc.
It is important to spread your investment for long investing assets to become successful. It will also reduce the risks of your portfolio.
You can also get the equities and bonds while investing in different projects
Watch list Features Are Not Impressive
What do you know about watch lists?
Generally, a watch list is a list of stocks that you can customize and keep an eye on it easily. It is an essential part of your trading plans for investment.
Many brokers offer you a watch list with good features that you can’t see in Robinhood. It is not possible to set your list according to the alphabet.
The unimpressive features of the watch list make this app unsuitable for a trader who wants to become successful.
If you don’t search deeply about your broker, it means you are gambling instead of investing.
Does Robinhood sell currency?
No, it doesn’t. Robinhood does not provide you a platform for a digital wallet. You can’t buy currency by debit card. You can’t move your coins until you sell them for cash.
Is Forex better than Robinhood?
It depends on the offers they provide their traders. Forex allows traders fewer financial instruments in comparison to Robinhood. Forex gets preference over Robinhood because of some aspects.
Are Forex or Robinhood good for beginners?
Both of them offer low deposits and provide access to educational resources. These are best for beginners and those who want to improve their trading skills. And in stocks, you cannot lose more than you invest.
Finally, we are going to conclude that we can’t trade Forex on Robinhood.
They are two different trading markets. Nothing is the same in both.
So, it is not possible to trade Forex with Robinhood. We have also mentioned the main reasons that will show you why it is not good to trade with Robinhood.
Hopefully, this post will prove a guide for you and your friend.
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