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I hear often from people with no explanation that I should switch from Robinhood to fidelity/vanguard. I am unable to find actual reasons for it other than the fact that Robinhood is relatively new. From what I understand, money in Robinhood that’s not invested is insured upto 250k and what’s invested can anyway be transferred during a collapse. Can someone please tell me why it’s not a good idea? Especially if I just plan on ETFs and blue chip stock investments
There have been cases where Robinhood has closed customer’s account, liquidating all their assets, in this bear market, without proper reason. So tread carefully.
Vanguard and Fidelity are stable with large client bases. Vanguard is the largest purveyor of personal mutual funds and Fidelity manages 401Ks for companies like Microsoft and Disney
I use fidelity and did have a vanguard account for post tax savings/investment at one point. Although Schwab E*Trade VG fidelity etc are much much bigger it appears to me nonetheless they want to go after the clientele RH created. It is quite evident Fidelity trying with all the UI improvements beta version of the app etc. I would think the difference is b/w what one would use to passively invest vs actively trade.
So which of these would be the best to passively invest?
For various reasons, Fidelity worked best for me over 10 years+. Some of my stock plans as well as 401k / hsa are here. Even if you are buying VG funds you can do it on fidelity. So it may be convenience more than anything else. But they had good customer support too. I do have E*Trade also for stock plans from couple of places worked and they were alright too. The way I see it RH customers are primarily retail/trading etc. VG otoh customers are primarily institutions, company retirement plans etc with little support unless you are DIY and know what to do. I feel Fidelity/E*Trade are somewhere in the middle. YMMV. Hth
If you are investing in index funds/etfs. What’s the advantage of Robinhood over two of the biggest companies in that space?
Not a clue, I just had it installed first
The accounting of Robinhood sucks as there is not a lot of info on what gains are in short vs long term capital gains or loss. They are always the last to send our tax documents at the time of taxes.
robinhood has no edge over other brokers except for maybe a dumbed down UI for noobs. they were probably hoping to go somewhere with crypto but that's not working out right now either
Fidelity UI is so confusing that after you buy something you’ll have no clue how to sell, which is obviously better for long term investments.
Wish trip would use something else. That UI is horrible.
Everyone commenting is giving good information to a blogger to writeup and in reverse, you get a substack email to buy premium from the same blogger to access their blog posts. Lol
i closed it down from a $$ perspective. they have a poor track record from an ethical perspective and i am not feeling safe having my $$ with them from a liquidity perspective. Thry halted trading for a reason.. I am keeping my investments in RH but that's it.
Who hurt you 😢
You can get better/faster fills on fidelity compared to Robinhood
Robinhood has very few products. Last I used it you could long us stocks/etfs and buy options. You can't do shorts, you can't lend your long shares, you can't buy (most?) foreign stocks, no bonds, no futures, etc etc. Robinhood also doesn't let you manage tax lots. The conspiracy theory is that Robinhood makes money by getting you worse execution via payment for order flow. How true that really is is questionable.
They sell order flow to Citadel. Not a huge deal, but it’s good to know where things stand.
Yeah but a ton of brokers do that, doesn't mean much. There's some compelling reasons why going directly to a market maker gets you *better* prices than the open market. And there are laws against providing worse fill than the NBBO. A lot of the stuff with citadel/pfof is fearmongering and conspiracy theories.