From Greg Wilson, chief analyst, The Legacy Portfolio:

Alan B.’s question in the February 11 Palm Beach Daily mailbag caught my eye. He asked about Robinhood, a brokerage offering zero-fee trading.

Robinhood is a trading platform designed by millennials, for millennials (Americans under 30-ish). Founders Vladimir Tenev and Baiju Bhatt’s goal is to “democratize” access to the markets. They hope low fees can allow greater participation.

I spent some time researching Robinhood. Here’s what you need to know before you take the leap:

1.  

You need an invitation. Without it, you’ll have to wait to start trading. After placing my reservation, I found out I was number 213,618 in line (it may take up to nine months to gain full access!).

2.  

To use Robinhood, you need to be a legal resident of the U.S., be over 18, and have a Social Security number.

3.  

Robinhood is currently available only on the iPhone, iPad, and iTouch through the Apple App Store. Robinhood is working on an Android version now.

4.  

According to Robinhood, it can offer zero-fee trading by using an efficient infrastructure and offering only select services. For example, the charts on Robinhood will be bare bones. You also won’t find any research.

5.  

Zero-fee trading is available only on U.S.-listed stocks.

6.  

Robinhood makes money on margin accounts, customer cash deposits, and fees. You can find the fee schedule right here.

7.  

For other questions, check out the Robinhood FAQ Center.

My main concern is the company’s ability to make a profit. Robinhood’s interest on margin—money borrowed from the brokerage for use in trading—is only 3.5% (and few millennials carry large amounts of margin). And with interest rates so low, there’s not much profit coming from cash deposits, either.

In a February 2014 interview with CNBC, Tenev said, “Robinhood isn’t focused on profits right now. We’re focused on building an awesome user experience.”

I’m betting the phrase “isn’t focused on profits right now” would make someone like Mark Ford cringe. You need to ask yourself if you want your funds somewhere without long-term viability.

Bottom line: Robinhood may be worth a small stake to test it out… but don’t put the “rent money” in it.

In tomorrow’s Daily, I’ll share with you an alternative no-fee (per trade) brokerage site. And you can begin using this site right away. I’ve had my own experience with it, and it’s been 100% positive. Stay tuned for more details, tomorrow.