Robinhood is also being sued by investors who sold nine meme stocks at a loss in late January and early February 2021. Shares of Robinhood were up 3 cents at $10.83 at midday on Thursday. The case is In re January 2021 Short Squeeze Trading Litigation, 11th U.S. Circuit Court of Appeals, No. 22-10669.

Fidelity's fee structure is somewhat different, as this platform offers significantly more products and services than Robinhood. Fidelity doesn't charge trading fees or commissions on stocks and ETFs. However, unlike Robinhood, it does charge $0.65 per contract to trade most options.

Yes, some people have gotten rich from Robinhood. For example, one Robinhood user turned $250,000 into $400 million by investing in Tesla stock. However, it's important to note that these are the exception, not the rule. The vast majority of Robinhood users do not make money, and many lose money.

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.