This is a genuine question. What is wrong with Robinhood if I my intent is to buy and hold. I looked into Schwab but they don’t offer recurring investment with daily frequency like Robinhood does. I can agree Robinhood might be making money off of it. But I’m no penny pincher, I don’t deal in millions. A cent or two here and there might add up but I don’t think it’s significant to me. Also, I like how much interest I earn on my uninvested cash on Robinhood gold. What’s more, in case of emergency, I can borrow cash through margin given how low their interest rates are (used to be 2% before hikes; I understand the pros and cons of margin very well). So the question is - why most of you don’t recommend Robinhood? #robinhood #schwab #fidelity #tastytrade #etrade #interactivebrokers
They are sheeps, read something somewhere, following it. A lot of people use it. Its easy to use, very user friendly and no silly fees. But its so simple to use, you might not realise that its your real money
That’s the entire USP: easy to use. Perhaps too easy to use.
It’s simple. You will probably never need customer support until you do. You’d rather have that support from Schwab than Robinhood
I love Schwab customer support. However, I have observed Robinhood is slowly but steadily catching up. The last two times I reached out to them. I had no problems. Once again, I don’t do anything fancy except buy and hold.
I just took a look. It’s a 4 hour wait to contact Robinhood now at 10 PM central
There is a lot of misinformation in retail about execution quality and pfof. Every brokerage has to report their execution quality and if you see the numbers, you'll realize that the difference isn't that much. In fact Robinhood's execution quality/price improvement/nbbo is better than Schwab for example. Even this doesn't really matter if all you're doing is buy and hold etfs/big tech because the massive volume means bid/ask spread is just too tight most of the time resulting in a marginal difference in your execution price. https://www.schwab.com/execution-quality https://robinhood.com/us/en/about-us/our-execution-quality/
Exactly!! I think people severely exaggerate how bad is Robinhood based on GME fiasco, and as if Schwab is out there doing charity (although I use Schwab too). When truthfully, Robinhood is the very reason investing is democratised now.
I've seen the MM scorecards in options and it's not that similar across brokers, unless you're buying and holding where it doesn't matter. These reports are not public as far as I know.
On “I can agree Robinhood might be making money off of it”; Every brokerage does PFOF unless they explicitly say they do not.
There's nothing wrong with Robinhood, the GME "scandal" is just a bunch of stupid accusations made by people who don't understand at a low level how the stock market works. To be fair to them, it's definitely not common knowledge and the overwhelmingly popular stories are going to be the ones that spark the most outrage, so mass media isn't going to educate anybody. But it is a bit infuriating how much blatant misinformation there is on the internet made by armchair financial experts.
This boils down to personal preference. In theory, there's absolutely nothing wrong with robinhood. Personally, however, I wouldn't trust robinhood for anything more than day trading. If you have a buy/hold strategy, the cost difference between robinhood and a big broker won't matter. But if one day the shit hits the fan, I'd much rather have my life savings at an institution that this too big to fail, one that has a long history of experience dealing with crises, and one that has multiple points of human contact (phone, physical office). Robinhood fails on all these counts. The GME short selling saga is a perfect example -- they didn't have enough capital to cough up their margin requirement at the DTC and, after desperate phone calls to VCs failed, they had to block short selling. Such a thing would never happen to a large established broker because they have an extremely diverse investor base and have lots of contacts in the industry they can call upon for help if they need it.
Fun story that happened like 3 weeks ago, buddy had expiring longer dated options deeply profitable, robinhood executed a sell order during a slight price drop and then wouldn’t let him cancel it due to a pdt “protection.” The order didn’t fill and his deeply profitable contract expired worthless because robinhood support is impossibly terrible (and they likely executed that and sold it for their gain). They are a walking scam of a company and I love watching their user base deteriorate. I’ve been out after they overtly scammed millions from the gme scandal, and anyone who isn’t yet is a fool imo
!?!? How can "deeply profitable" option expire without profit? "Deeply profitable" meaning in the money option? "They likely executed and sold it for their gain" What do you think brokerages do when the option expires? They trade themselves to make money? Lol Brokerages don't take a position, execution happens at market maker venues. I hope you do know that.
Yeah, this doesn't make sense. All ITM options are auto-exercised at expiry so you don't have to sell them.
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Officially hit a NW of $0 🎉
https://www.theverge.com/2021/1/28/22254102/robinhood-gamestop-bloc-stock-purchase-amc-reddit-wsb
This is old. Let’s talk 2023. Any personal bad experience?
Nope cause I don’t use robinhood. I use a real broker like Schwab. Even a robinhood employee below basically said you should be using a real broker not robinhood. If you don’t fancy anything but buy and hold then stick with Schwab. Robinhood might not be around in 10 years. Sure your investments are covered but do you want the hassle of switching accounts and transferring? Schwab will most likely still be around in 10 years.