Robinhood vs TD Ameritrade?
What is the difference and which is better #personalfinance #investments ? New in stock, learning TC - 200K
Robinhood sucks in that they choke during peak loads, when you want to get in or out of the market. They are immature and in infancy as compared to TD who have far advanced tools for analysis and execution.
Why do people use RH then?
Because low barrier to entrance sign up easy options trading easy and so on. The app is gamification even easy ux to make a txn
TD if actually want to trade and learn. Robinhood if you want stonk confetti & outage
RH is great if you’re buying and holding stocks for an extended period of time. It has a simple and clean UI. For instance, if you want to buy ETFs on a reoccurring basis or individual stocks you plan on investing in for the future. You can also purchase Bitcoin and some other crypto as well. TD is great if you want to actively trade since they provide you with features such as bidding and asking prices. You also get level ll for free and can trade on margins without paying a monthly subscription fee (Robinhood would be $5 / month). TD doesn’t have crypto, but they do have a lot of OTC stocks that RH does not have. You can always open both accounts and use both for different purposes. If you’re starting out and you just want to make some stock purchases, I’d go with RH. If you want to be an active trader and daytrade / swing trade, I’d go with TD. I use both platforms and both have their strengths / weaknesses.
RH covers all my use case of buying, holding stock, reading news, having information I need on my fingertips and not adding unnecessary complexity. I use it for options trading, margin trading as well and works extremely well for me.
For my trading style, RH is best. I make about 3-4 trades per day, so zero fee and simple and fast UI is optimal for me. But when you hit those peak circuit breaker style days and you really need to buy or sell your options, it’s not a good day to be on RH.
RH has been becoming better than peers in this https://www.yahoo.com/now/robinhood-stays-up-as-big-brokerages-go-down-212512740.html The earlier outages also coincided with outages in other platforms.
Good to know. Thanks!
Thanks everyone!
So what did you decide?
I opened both, funded TD Ameritrade for now, RH offered a free stock so opened that too .. 😊
Ameritrade:- Basic UI, extremely stable website and the app, does not mess up, does not trick the brain with a dopamine rush when pressing the buy button with candies and balloons, for mature folks Robinhood:- Everything opposite from above.
Which one is more secure and safe?
Robinhood doesn’t allow me to sell specific lots. Useful for tax harvesting.
What’s tax harvesting
If I bought stock $XYZ in 2018 and 2020 and want to sell some XYZ I can sell 2018 lot and pay lower long term capital gain. Robinhood probably does FIFO which in this case will sell 2018 lot as well but I would like to have that control for minimizing tax returns in other scenarios.
Tos has better fills and actually has good customer support.