Robinhood Stock Trading

I had made a ton of stock option trades with my traditional broker. The problem is that they charge a commission per contract. Sometimes I want to buy a boatload of contracts. This has cost me as high as $300 in fees. And that is just on the buy. You got to sell and pay again as well.

So I am wondering about this company called Robinhood. They claim to offer stock trades with no commission costs. Sounds too good to be true. Of course they have to make money somehow. I am thinking they might not give me the best trade execution price.

My broker always tries to get my the best price when I buy or sell. That saves me money, especially when a lot of shares are at stake. So I just got to make sure I put in the right limit prices with Robinhood. Then in theory, I should be able to spend less money in transaction costs. That should result in bigger gains.

The only drawback is to get the free trades, you got to accept electronic confirmations of your trades. I like getting paper confirmations in the mail. It is not that Robinhood won't provide you with those. You just got to pay. That defeats the whole purpose of trading for free.