Robinhood is considered safe for investors. It's a member for the Securities Investor Protection Corp. (SIPC), is regulated by the SEC, and has additional financial protection per customer up to certain amounts for cash and securities.

What are the disadvantages of using Robinhood? The main downside of Robinhood is that the investment selection is limited for hands-off, passive investors: The broker offers no mutual funds or index funds, which financial advisors typically suggest using as the basis of a diversified portfolio.

Robinhood is an online discount brokerage that offers a commission-free investing and trading platform. In 2023, the company generated the majority of its revenue from its net interest revenues segment due to the favorable interest rate environment. Payment for order flow also contributed largely to revenues.

There is no one-size-fits-all answer to this question, as everyone's investment goals and risk tolerance are different. However, some popular stocks on Robinhood include Tesla, Amazon, Apple, and Netflix. These companies are well-known and have performed well over time, making them a good choice for beginner investors.