Robinhood is looking to educate novice investors on the first steps they should take. But financial experts argue that people just starting off on their financial journeys should proceed with caution when using investment apps.
On Tuesday, Robinhood HOOD, -8.16% rolled out a new service called “First Trade Recommendations” aimed at first-timers just breaking into the investing landscape. The service “allows customers to learn by doing,” the company said in a blog post.
New customers will be given an option to receive help investing. When they click on that option, they will be directed to fill out a questionnaire about their appetite for risk, their investing goals and how long they plan to be investing.
It will produce personalized portfolios, featuring four exchange-traded funds, based on algorithm utilizing the responses received through the questionnaire. “The recommended ETFs will give customers exposure to a diverse set of…