Robinhood has introduced a new experience geared towards trading noobs, and the company says its personalized stock recommendations could help beginners get a sense of the technical side of trading.
If you’re a new user and haven’t added anything to your Investment Profile, you’ll get the option to choose “Get help with your first investment” from the Investing tab. Robinhood will then present you with a questionnaire that asks what your investment goals are, how long you plan on investing your money, and more.
Based on those answers, Robinhood will recommend a personalized portfolio containing four diverse exchange-traded funds (ETFs), with additional information about each fund and why Robinhood picked it for you. Once you’ve reviewed all of the funds, you can choose whether or not you want to invest in the recommended ETFs.
And if you feel especially lost when it comes to investing, Robinhood is now offering something it calls “Tours” to show you the ropes of trading. The app will provide a quick overview of investment-related terminology, along with some of the important elements you might come across when using the app and trading in general. It’s definitely something I could’ve used when dabbling in the stock market for the first time — and is probably something I could still use if I’m honest.
It’s obviously best to use your own judgment and research and not to over-rely on a simple questionnaire for making major investment choices. Robinhood was fined $70 million by financial regulators last year for not properly protecting investors and supervising trades, and it’s possible that carefully vetted advice will stop it from repeating that experience. It can’t be much riskier than relying on Reddit or Discord for tips (for many investors, at least).