Using Robinhood for Investing

Salesforce MahovihS
Apr 13 40 Comments

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.

comments

Want to comment? LOG IN or SIGN UP
TOP 40 Comments
  • Oath / Mgmt Atinlay2
    No, Robinhood sucks
    Apr 13 11
  • GoodRx BobAxelrod
    If you're worried about a 5 dollar commission on far superior competitors then maybe you shouldn't be investing in equities.
    Apr 13 4
    • This.
      Robinhood is a race to the bottom for noob investors that should better stay out of the market
      Apr 13
    • GoodRx BobAxelrod
      Its fine if you want to deposit like a grand and fuck around as a learning experience tbh. Not meant for any serious cash.
      Apr 13
    • LinkedIn adamy
      Terrible advice. $5 is important. OP can use Vanguard and buy low-cost index funds with zero commission.
      Apr 13
    • Uber zhdbwb
      It’s not about one $5 commission, it’s about accidentally spending thousands in commissions over years for ‘price execution’ which is unprovable whether you got any better than Robinhood
      Apr 13
  • Amazon EQjp82
    Calling r/wallstreetbets
    Apr 13 3
    • Microsoft MMKy42
      We out here.
      Apr 13
    • Microsoft shambu
      Getting the $ROPE ready for next downtown
      Apr 13
    • Microsoft shambu
      Apr 13
  • Uber zhdbwb
    Robinhood is fine, otherwise you’re just donating hundreds in trading commissions annually to your brokerage
    Apr 13 1
  • LinkedIn adamy
    No. Don’t use robinhood. Especially when selling, Robinhood uses FIFO, which is not tax efficient. Also, you can’t add beneficiaries. Use Vanguard to invest in index funds instead. Read more here: http://www.firetobiz.com/investing-basics
    Apr 13 0
  • New numaye
    Use Interactive Brokers
    Apr 13 1
    • Amazon / Eng bababur
      If you are ok with monthly fees.
      Apr 13
  • Salesforce MahovihS
    OP
    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.
    Apr 13 0
  • 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
    Apr 13 6
    • 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
      Apr 13
    • Huntington National Bank / Data bYk785
      @goodforu - SIPC, not FDIC
      Apr 13
    • Good point!
      Apr 13
    • Robinhood / Eng weirdMan2
      $7 per trade 😂
      Apr 16
    • Robinhood / Eng weirdMan2
      Everyone loves to extrapolate from the cash management fiasco especially the ones who don't work here and haven't got a clue on what's being worked on in the company. I agree though, the company moves too fast and sacrifices quality. Young engineers have setup a mediocre foundation for the engineering side of the company. But miraculously, our platform is fine to trade on as long as you get analytics and data vis from somewhere else
      Apr 16
  • I wouldn't go for Robinhood if you're planning to invest for the long term because it does not have DRIP, which reduces compounding
    Apr 14 2
    • Amazon / Product
      .🦔...

      Amazon Product

      BIO
      🤐
      .🦔...more
      Login to robinhood every quarter and reinvest your dividends by yourself until Robinhood creates a check box that does it for ya?
      Apr 14
    • Uber zhdbwb
      I use Robinhood for drip, it’s not automated but braindead to do yourself. I’m sure they’ll have it by H2 this year.
      Apr 14
  • Robinhood is for gambling
    Apr 13 0
  • Amazon / Eng Zuckerbot
    No love for Schwab? They’ve been great. My independent adviser just switched to them and I’ve been super happy with the platform
    Apr 14 0
  • M&T Bank tyjA53
    Are you already maxing your 401k/Roth/HSA?
    Apr 14 0