I’m planning to consolidate my investments to Robinhood to take advantage of being a Gold member with 4.9% interest in parked money and the ability to DCA to different assets. It’s not much money (low 6 figures) but I’m still curious about their financial health. What do you think? #robinhood
After the 2020 fiasco where they had restricted trading sone securities and also their platform crashed in March 2020 and coz of which you could not sell when market was free falling, I will not trust RH again… Imagine they have to maintain liquidity and coz the rates are going down in future and customers start withdrawing the cash what happens… I may be missing a lot of details here and my understanding may be incorrect but OP ydy
Good point, thanks!
lol that disclaimer at the end
Fixelity SPAXX gives ~5% yield and it’s guaranteed 5% and as liquid as the investment can be. Why would you use Robbing Hood? Gold member lmao they be robbing you in broad daylight by disabling buy button. Fidelity is free, everybody is gold member for free.
Because of convenience, it’s parked money that can be withdrawn or invested at anytime, while still making similar return to a specific fund and dealing with transactions hassle
I moved my investments to Fidelity when meme stocks like GME ruled and the restrictions that came with it. With a basic, free membership Fidelity will give access to pending transfer money, RH would only allow 1000 until the transfer clears. Fidelity gave access to premarket transactions etc. So I liked the move. But still I was looking for CDs in credit unions to park my emergency fund, but once I learnt about SPAXX, now I keep everything in the brokerage and it is so convenient. Thanks Fidelity.
If they can stop me from selling what I own, I cannot trust them. Thousands of people lost real money because they couldn’t sell those meme stocks at that time.
Your understanding is wrong, you could only sell/close positions and not open new ones because of our liquidity crunch.
The amount of people who are bought into this conspiracy theory without even simple fact checking is astounding
You'll need to do your own research because people on here are still salty about the GME fiasco but your money in their cash sweep program is FDIC insured by partnered banks. The one thing to look out for though is in their disclosures for it they mention that it's "eligible" for fdic insurance when they do this. I'm guessing there's an edge case where it won't be insured for some time and so they're covering their bases with this term in the event of something happening.
Eligible means all of your money is FDIC insured to $2MM+. This keeps expanding as we add partner banks. Your money is allocated evenly across these banks to ensure that you’re fully covered by the insurance.
Gotcha! Thanks for clarifying that, gives me peace of mind
why, just use tdameritrade. Thinkorswim interface is actually extremely nice for tracking options chain and placing trades also nice for just general investment mgmt
I moved all my assets from Robinhood to Schwab
Was it easy
Yes. Around 75 USD transfer charges. If you have crypto in RH, do not move that