Vere said:
@Zephyr
That’s for options, though. It probably affects only 2% of their users.
If they’re shady with options, who’s to say they aren’t doing the same with regular trades? They profit off your trades through order flow.
They’ll make up the bonus in other ways.
Most Robinhood accounts are small, averaging around $4,000. They’re trying to attract bigger customers with this deal.
Greer said:
They’ll make up the bonus in other ways.
Most Robinhood accounts are small, averaging around $4,000. They’re trying to attract bigger customers with this deal.
Where are you getting that info?
@Adi
Just Google it. Over the years, that $4k number has been bumped up. During the pandemic, it was even lower.
The 3% bonus sounds great, but it’s spread over 5 years, so it’s really just 0.6% a year. Still nice if you’re holding long term, though.
Vic said:
The 3% bonus sounds great, but it’s spread over 5 years, so it’s really just 0.6% a year. Still nice if you’re holding long term, though.
But since they give it up front, it compounds.
Vic said:
The 3% bonus sounds great, but it’s spread over 5 years, so it’s really just 0.6% a year. Still nice if you’re holding long term, though.
Isn’t it a 5-year hold?
Vic said:
The 3% bonus sounds great, but it’s spread over 5 years, so it’s really just 0.6% a year. Still nice if you’re holding long term, though.
Isn’t it a 5-year hold?
Yes, you have to keep it there for five years, and you need to sign up for Robinhood Gold for at least one year at $5/month.
Vic said:
The 3% bonus sounds great, but it’s spread over 5 years, so it’s really just 0.6% a year. Still nice if you’re holding long term, though.
Isn’t it a 5-year hold?
The holding period depends on the bonus amount.
Vic said:
The 3% bonus sounds great, but it’s spread over 5 years, so it’s really just 0.6% a year. Still nice if you’re holding long term, though.
Getting the bonus upfront is way better than getting it spread out. If you invest it well, the growth is much higher.
Vic said:
The 3% bonus sounds great, but it’s spread over 5 years, so it’s really just 0.6% a year. Still nice if you’re holding long term, though.
The long holding period locks in customers. Even if you just put everything in a passive fund like VT and don’t touch it for 5 years, it’s worth it for them to have those assets on their platform.
Robinhood is killing it compared to older trading platforms. This gap is only going to grow.
Nico said:
Robinhood is killing it compared to older trading platforms. This gap is only going to grow.
Right? My 67-year-old aunt uses Robinhood. Meanwhile, I’m still trying to figure out Vanguard. Robinhood makes investing super easy, and now they’re offering cash bonuses too.
They sell your order flow to Ken Griffin, who front-runs your trades.
No expensive ads or commercials.
They’re willing to take short-term losses for long-term gains. Gold members are more likely to stick around.
Once you take the bonus, your money is locked for at least 2 years. The 3% bonus is spread over 5 years, and with the $5/month Gold membership fee, they’re only really paying out 0.6% a year.
Ren said:
Once you take the bonus, your money is locked for at least 2 years. The 3% bonus is spread over 5 years, and with the $5/month Gold membership fee, they’re only really paying out 0.6% a year.
But Gold gives you $1k free margin and a 1% match. It’s not hard to offset the $5/month fee. Plus, Robinhood is a publicly traded company, so you can check their financials. It’s regulated like any other broker.
@Griff
And they’ve got a 3% cash-back credit card coming, which will more than pay for the Gold fee.
Marlo said:
@Griff
And they’ve got a 3% cash-back credit card coming, which will more than pay for the Gold fee.
That card isn’t out yet.