Investing Simple Logo
Get 1 Free Stock Worth Up To $200 From Robinhood!
Sign up with Robinhood, deposit any amount and get 1 Free Stock. It takes less than 3 minutes to sign up and claim your Free Stock Bonus.
Earn 5.00% APY with M1 High-Yield Savings Account
M1 Plus members can earn 5.00% APY on their deposits with no minimum balance required.
Webull free stock promotion
Get Up To 5 Free Stocks From Webull
Open a new Webull brokerage account today and deposit any amount of money to receive 5 free stocks. Webull offers commission free stock, ETF, option and crypto trading.
Written by Sam Pennington on March 15, 2023
FTC Disclosure: Some of the links on this site are affiliate links. Read our full disclaimer here.

How Much Does The Average Person Make On Robinhood?

Investing in the stock market can be an exciting venture, especially with the rise of commission-free trading platforms like Robinhood.

However, one question that many people ask is, "How much does the average person make on Robinhood?"

Unfortunately, the answer may not be what you want to hear. Let's take a closer look.

Mutual Funds vs Index Funds (S&P 500)

To determine the success rate of stock pickers on Robinhood, we need to look at the performance of mutual funds and index funds.

Mutual funds are managed by expert stock pickers, while index funds are passively managed.

According to numerous studies, most mutual funds fail to beat the market, and the ones that do aren't usually the same each year. It's essentially a game of chance.

If the professional stock pickers can't consistently beat the market, your odds as a Robinhood investor are even worse.

Furthermore, many Robinhood investors take on risky bets, which means the average Robinhood investor is likely losing more money than the typical stock market investor or mutual fund manager.

Buffett's Advice

Warren Buffett, one of the most successful investors of all time, is a strong proponent of index funds.

In his 2013 letter to Berkshire Hathaway shareholders, he recommended that most of the cash that goes to his family be put in a low-cost S&P 500 index fund. This is a clear indication that even the most successful investors believe in the power of passive investing.

That being said, Robinhood does offer fractional shares of stocks and exchange-traded funds (ETFs) with as little as $1.

There is no minimum deposit required to open an account, which means that new users can open an account and start investing with just a dollar. However, it's important to remember that investing in the stock market always comes with risks, and it's essential to do your research and invest wisely.

Final Thoughts

In conclusion, the average person's success rate on Robinhood is difficult to determine.

With the majority of mutual funds failing to beat the market, and the added risks of taking on risky bets, the odds may not be in your favor. The best course of action for most investors is to follow the advice of successful investors like Warren Buffett and invest in low-cost index funds.

Always do your research and make informed investment decisions to maximize your chances of success.

Don't forget to grab your free stock worth up to $200 from Robinhood today!

Article written by Sam Pennington
Sam is a personal finance writer. While in college, he dedicated his spare time to learning about personal finance, investing, and real estate. Sam currently works as a business analyst for one of the top food manufacturers in the world.

Read more

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
Try Robinhood
M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
Try M1 Finance
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
Try Fundrise
Copyright © 2018 – 2023 Investing Simple LLC. All Rights Reserved.
Investing Simple is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. Investing Simple has advertising relationships with some of the offers listed on this website. The information on Investing Simple could be different from what you find when visiting a third-party website. All products are presented without warranty. For more information, please read our full disclaimer.
Website managed by Stallion Cognitive™

Get 1 Free Stock Worth Up To $200 From Robinhood!

Don't Miss This Opportunity!

Investing Simple readers can claim a free stock from Robinhood worth up to $200 when they open a brokerage account and deposit any amount.

For US Residents only. Investing Simple is affiliated with Robinhood, and we may earn a commission when you sign up for Robinhood.

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram