Using Robinhood for Investing
Do you think using robinhood to invest (not trade) is a good idea? By investing, I mean investing in index funds / ETFs. I really like Robinhood as opposed to Fidelity or Vanguard. But not sure what happens if a startup like Robinhood goes out of business.
Calling r/wallstreetbets
Robinhood is fine, otherwise you’re just donating hundreds in trading commissions annually to your brokerage
Robinhood is the most amateurish startup in fintech. They literally don't know what they are doing.l and would be afraid to put a single dollar on them. I'm using Ameritrade. And I'm ok to pay 7$ per trade to have a professional well maintained platform
What exactly do you mean? What do they not know about? Any examples?
First thing I noticed is that their history graphs for a stock don't have labels on the x and y chart. Basically you look at a price graph for the day of trade but you have no idea what's their range. Other example is when they came out with a saving account that was going to be invested they claimed it would be FDIC insured. Guess what? The FDIC president tweeted it was not and was never contacted about it. Those guys are the "go fast and break things" of fintech. They push noobs to buy stocks with zero fundamental knowledge. It's a recipe for disaster
If you're worried about a 5 dollar commission on far superior competitors then maybe you shouldn't be investing in equities.
This. Robinhood is a race to the bottom for noob investors that should better stay out of the market
Its fine if you want to deposit like a grand and fuck around as a learning experience tbh. Not meant for any serious cash.
Use Interactive Brokers
If you are ok with monthly fees.
Thanks for all the help folks! I won’t be trading. So commission on each trade won’t bother me. Merrill edge, vangaurd, fidelity or etrade seem good, even though I don’t have 100k to invest. Planning to do dollar cost averaging over a really long time. I am glad I asked this question here.
Robinhood is for gambling
Are you already maxing your 401k/Roth/HSA?
No, Robinhood sucks
Agreed.
What’s the alternative? What do you use?