Fidelity charges 8% annual interest while Robinhood charges 2.5% for margin account?
It seems Fidelity is charging me 8% interest vs Robinhood's 2.5% So why not transfer everything to Robinhood? (ah yeah, Interactive Brokers is also about 2.5%) I called Robinhood... looks like the problem is that we cannot "transfer stock into Robinhood... only transfer out", so we have to sell at Fidelity as cash (and pay tax), and then transfer the cash to Robinhood... not sure about Interactive Brokers yet. By the way... let's say if my margin is $20,000, so then $20000 * (8 - 2.5) / 100 = $1100 so I lose a MacBook Air M1 each year using Fidelity's 8% By the way, Robinhood cannot let us buy fractional share unless it is market order... which is not good if you have $2000 extra and want to buy some GOOG using a limit order. -- Poll: why not transfer everything to Robinhood? TC: 390k
I don’t personally trade like this but it always seemed like Robinhood is one of if not the best for options and leveraged trading
Quite the opposite. RH is dog 💩 when it comes to options. Worse fills, carelessly approves everyone automatically, can't do anything more than spreads.
@xMeta - what is the best options platform you recommend then? And why?
Because RobinHood can stop you from making trades if they wish to do so, you know, to “protect” you
Robinhood’s business model is based on creating gambling addictions and Fidelity’s is not
but you can buy AAPL at Robinhood and hold it for 5 years... nobody is stopping you
Seems like you shouldn't be using margin, if you don't know what Robinhood did to retail investors this year.
It's not just Robinhood
you mean the Gamestop thing?
Interactive brokers also have very less margin rates.
Yes, switch to Robinhood.
https://www.optimizedportfolio.com/lowest-margin-rates-brokers/
Interactive Brokers is 1.59%
1% over $100k of Margin
What is margin account
Why tf are you using margin?
Because (s)he is smart
Why tf arent you, google?