Search results
- Robinhood will appeal to investors looking to cut costs. But customer support is lacking, and the broker has run afoul of regulators.
www.nerdwallet.com › reviews › investing
People also ask
Is Robinhood bad for investing?
Is Robinhood a good stock broker?
Does Robinhood support stocks?
Should you use Robinhood?
Jul 1, 2021 · Updated Jul 1, 2021. Want to start investing? Thinking of using the Robinhood app? Here are several reasons why Robinhood is bad for investing. Following its launch in 2013, Robinhood quickly became a popular way of investing in stocks and exchange-traded funds (ETFs). However, it's no longer the golden boy of millennial investing.
- Partnerships Director
- Robinhood employs a risky business strategy to make money. Options can be difficult for new investors to understand, and in some cases, they present the unlimited risk of financial loss.
- The company hasn't had the best start since its IPO launch. In its first two quarters, Robinhood has posted mixed financial performance. Year to date, the company has reported a net loss of $1.9 billion and holds $17.9 billion in total liabilities.
- It's had significant problems with the SEC. Robinhood offers "zero commission fees" on every transaction, yet it's still making money from each trade using a taboo practice called "payment-for-order flow" (PFOF).
- Robinhood has broken the public's trust. Robinhood has had a rollercoaster of a year, with many news-breaking transgressions. Last January, Robinhood halted trading after retail investors started rapidly buying and selling shares of GameStop.
Robinhood has not had any known major security incidents since 2021. But given the broker's checkered past, investors must determine for themselves whether Robinhood is safe enough to use.
- Robinhood
Robinhood reviews tend to be extremely positive or negative. We'll provide a balanced view of the pros and cons and explain who should and shouldn't use it.
- Self-directed investment platform
May 14, 2024 · Fact-checked by Steven Hatzakis. Reviewed by Blain Reinkensmeyer. May 14, 2024. Robinhood is very easy to use and its educational content is a joy to read. Though it’s a pioneer in making investing fun and accessible to beginners, other brokers have stepped up their novice games.
Apr 12, 2024 · Pros. No account minimum, no monthly fee. Very easy to use. Allows cryptocurrency and fractional share trading. Instant access to deposited cash. Cons. App design may encourage active trading,...
Jul 3, 2021 · Opinion: Here’s why you should buy Robinhood stock — despite these big negatives. Last Updated: July 3, 2021 at 9:34 a.m. ET First Published: July 2, 2021 at 11:21 a.m. ET. By. Michael Brush...
