Robinhood is one of the most popular investing apps available.
This is the app that kicked off the commission-free trading revolution, which led almost all brokerage platforms to ditch trading commissions altogether.
So, let's dive into the numerous ways in which it is possible to make money using the Robinhood app in 2025.
However, do keep in mind that investing in financial markets carries risk. All investments come with the potential loss of principal.
It is 100% possible to lose money using the Robinhood app when buying stocks, cryptocurrencies, or other assets that decline in value.
Don't forget to grab your free stock worth up to $200 from Robinhood today!
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Use our button above to get a free fractional share worth $5 to $200 when you open an account!
As soon as you link your bank account after opening the brokerage account, you can pick your gift stock from a list of 20 of America’s leading companies.
Since this is totally free, it's a guaranteed way to make money with Robinhood.
Robinhood recently rolled out a major 2025 app update that includes a sleek new interface and improved usability. The update simplifies account management and introduces support for Roth IRAs, joint accounts, and expert-managed strategies, making the platform more appealing for both beginners and advanced investors.
New features include tokenized investments allowing 24/7 trading of certain assets, private company investing so you can buy shares pre-IPO directly on the app, and a realized profit/loss tracking tool to help you monitor your overall performance more precisely.
Also anticipated later this year is Robinhood Cortex, an AI-driven investment assistant designed to provide real-time market analysis and advanced insights to help investors make informed decisions and navigate market volatility.
The free stock promotion is still available in 2025, allowing new users to claim a free fractional share worth between $5 and $200 when opening and funding a new account. This can be chosen from a selection of top U.S. companies, making it a simple way to start your investing journey with Robinhood at no cost.
When you buy shares of stocks and/or ETFs on Robinhood, some of these may pay out dividends—typically on a quarterly basis. Dividends are credited to your cash balance by default.
You can enable an automatic dividend reinvestment plan (DRIP) in your account settings to reinvest dividends into more shares, including fractional shares. This helps maximize compound growth over time.
Remember, however, dividend payments are never guaranteed and depend on company policies and performance.
Asset appreciation means making money through the increase in share price of financial assets like stocks or ETFs.
For example, if you bought 10 shares of Coca-Cola stock at $50 a share and later sold them for $60, your shares appreciated in value, generating about $100 in capital gains, or $10 per share.
Stocks that pay dividends can also appreciate in value, combining income from dividends with capital gains.
Keep in mind, though, prices can also decline, sometimes due to broad economic factors unrelated to company fundamentals.
Robinhood supports trading in a variety of cryptocurrencies, accessible directly in the app.
Crypto markets remain highly volatile and risky. Prices can fluctuate dramatically over short periods, so it’s easy to lose money quickly.
Cryptocurrencies do not pay dividends or yield income. The only way to profit is through asset appreciation—buying low and selling higher.
Robinhood offers options trading, including equity and index options, as well as futures and newer event contracts. Event contracts allow betting on outcomes like elections, inflation data releases, or sporting events.
Options trading enables you to speculate, hedge, or generate income via option writing (selling options). However, it comes with significant risks. Many traders can lose 100% of their investment quickly if they don’t fully understand these complex instruments.
These advanced features require thorough education and judgment to use responsibly, especially for beginners.
Robinhood’s own stock trades publicly on the NASDAQ under the ticker symbol HOOD.
Like any stock, it carries investment risk. After its IPO in 2021, HOOD’s share price declined significantly, reflecting challenges the company has faced. Potential investors should research carefully and consider volatility before buying.
Robinhood continues to offer retail investors access to initial public offerings (IPOs), allowing users to buy shares of private companies going public directly on the platform.
IPO shares are allocated randomly and equally among applicants, so there’s no guarantee you will receive the number of shares requested.
While IPOs can provide early exposure to new companies, many IPO stocks tend to decline in value shortly after going public, as seen with Robinhood itself.
In 2024, Robinhood launched Robinhood Legend, a free desktop trading platform designed to provide advanced charting tools such as technical indicators (e.g., moving averages), drawing capabilities, and customizable layouts.
This platform caters to more sophisticated traders, offering a robust environment beyond the mobile app, which remains primarily user-friendly but less customizable.
Robinhood’s Cash Management product is evolving into Robinhood Banking, expected to launch fully in fall 2025.
This will integrate your credit card, checking, and savings accounts into one app, backed by FDIC-insured banking partners, allowing you to earn interest on idle cash, pay bills, and manage multiple banking needs within Robinhood.
All investing on Robinhood, including trading in stocks, ETFs, options, futures, crypto, and event contracts, carries risk, including the loss of your invested capital.
Robinhood’s expansion into advanced products means you should fully understand any investment vehicle before trading. Especially with options and event contracts, losses can be rapid and substantial.
New investors should carefully evaluate their risk tolerance and consider consulting financial advisors before engaging in complex financial strategies.
With the latest tools offered by Robinhood—like the 2025 app update, Robinhood Legend desktop platform, and the upcoming AI-driven Robinhood Cortex—investors have more ways than ever to manage and grow their investments.
If you’re new, start with the free stock offer and explore simple strategies like dividend reinvestment and asset appreciation.
More advanced users can explore options, futures, and private company investing, but always trade responsibly.
