Rho Trade is another commission-free investing app that has popped up over the last year. This app was previously known as Jellifin, and has since been rebranded as Rho.
Unlike other commission-free investing apps, Rho focuses on traders (similar to WeBull).
The app differentiates itself from others by offering real time data, and premium levels for options trading. They also don't limit day trading in cash accounts.
Is Rho worth it? Check out our Rho Trade review below.
- Unlimited and commission-free stock and ETF trading
- Unlimited options trading for $40/month
- Real-time data for $19.99/month
What Is Rho?
Rho is Rho Finance, which is part of Jellifin Financial, Inc. Jellifin offers white-label trading services for broker-dealers and digital advisors. They used to offer trading services directly, but have rebranded their service to Rho. The Jellifin website now redirects to rho.trade.
Jellifin and Rho are technology providers. They are not members of FINRA or the SEC. Brokerage services are offered by Tradier Brokerage.
Jellifin started in 2016 and is based in Houston, TX. It has received a seed round of funding totaling $281K.
What Do They Offer?
Rho offers commission-free stock, ETF, and options trading. You can trade unlimited stocks and ETFs without incurring any commissions or subscription fees from Rho. If you want to trade options, there is a $40/month fee.
Since Schwab announced its commission-free trading in early October, its competitors had no choice but to follow suit. Rho was already going down that road long before other brokerages.
You can open any of the following accounts at Rho:
- Traditional IRA
- Roth IRA
Rho offers unlimited, commission-free equity and index options.
You can use more advanced orders, such as OCO. OCO stands for one-cancels-other. This is a type of bracket order. The way OCO works is that you can put an order above and below the current price of an option. When one order is executed, the other order cancels so that you don’t end up with two orders.
Day Trading Restrictions Still Apply
As with most brokerages, day trading restrictions still apply for margin accounts. Cash accounts are not restricted. If you have a margin account and are identified as a pattern day trader, you’ll need to maintain an account balance of $25K or more. You’ll also be restricted to three-day trades each five business days.
Web and Mobile App
Rho can be used from a desktop or a mobile app. The mobile app is powerful and allows you to do the following:
- Manage various account types.
- Advanced trading such as OCO.
- Real-time data such as Level I.
- Ability to do extensive research.
The mobile app is offered on Google Play and the Apple App Store. The desktop version also includes the above functionality.
Are There Any Fees?
There are no fees to trade stocks or ETFs. If you want to trade options, you’ll have to upgrade to the $40/month plan. Also, you still incur exchange fees, which are generally small. If you want streaming data, it will cost an additional $19.99/month.
How Do I Open an Account?
You can open an account at https://www.rho.trade.
Is My Money Safe?
As with most investments, Rho is not FDIC-insured. Tradier Brokerage is a member of FINRA and SIPC, which does offer some protection for investments. SIPC protects an investor’s brokerage funds up to $500,000 in the case that the brokerage experiences problems.
Is It Worth It?
It really depends on your volume of options trades.
Stock and ETF trades are now free at the major brokerages. You might find more trading functionality with a major brokerage.
While base options commissions at larger brokerages are free, you are still charged $0.50 per contract. To incur more than $40 in options commissions, you’ll need to trade more than 80 contracts.
Also, depending on the account type, major brokerages offer real-time streaming data at no charge, which obviously beats Rho’s $19.99/month fee.
The deciding factor will come down to the volume of contracts that you trade, and if you’re using real-time data.
Rho Trade Review
- Commission and Fees - 100
- Ease of Use - 70
- Customer Service - 70
- Tools and Resources - 60
- Investment Options - 80
- Specialty Services - 80
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.