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.
Actually, it’s available now. I think you can even refer people.
Marlo said:
@Griff
And they’ve got a 3% cash-back credit card coming, which will more than pay for the Gold fee.
I’ve been waiting on that card for months. Hope I get it soon.
@Griff
And don’t forget the 5% APY. That covers the Gold fee too.
@Griff
My point is, the match isn’t free money. Robinhood knows they’ll make it back over time, especially with Gold members. Taking this deal is still an investment with risks.
Ren said:
@Griff
My point is, the match isn’t free money. Robinhood knows they’ll make it back over time, especially with Gold members. Taking this deal is still an investment with risks.
If you’re moving $5,000, maybe the Gold fee isn’t worth it. But if you’re moving a lot more, that $5/month is negligible. Plus, if you invest the free $1,000 margin in something stable, you’ll more than cover the fee.
I’ve got about $350k in Robinhood. Didn’t know much about investing until recently. Should I move my money to another broker? Or is it fine here? I’m putting $1.5-3k a month into VOO.
Farrell said:
I’ve got about $350k in Robinhood. Didn’t know much about investing until recently. Should I move my money to another broker? Or is it fine here? I’m putting $1.5-3k a month into VOO.
If you’re investing long-term, just buy and hold. Automate your investments and ignore the account for 20 years. But you might want to max out your IRA before your brokerage account.
@Ren
That’s the plan. I’ve got a 401k through work, but no IRA. I thought we made too much for one? My wife makes $160k and I make $200-240k a year.
Farrell said:
@Ren
That’s the plan. I’ve got a 401k through work, but no IRA. I thought we made too much for one? My wife makes $160k and I make $200-240k a year.
Yeah, you’re over the limit for a regular IRA.
Farrell said:
@Ren
That’s the plan. I’ve got a 401k through work, but no IRA. I thought we made too much for one? My wife makes $160k and I make $200-240k a year.
You can do a backdoor Roth IRA if your employer allows it. I make more than the limit and do this.
Most people using Robinhood don’t have huge IRAs. It’s not costing them as much as you think.
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Payment for order flow. Easy money for them.
Did you read the fine print? You have to leave your money there for a long time, giving them plenty of time to make it back. Some people will benefit, but there are definitely strings attached.
Robinhood prints money through order flow. To get more order flow, they need more users. They’ve always been about giving more to the everyday investor. First, they offered free trades when others charged $9.99 per trade. Now they’re offering deposit matches and IRA bonuses. For savvy users, it’s a great deal. Robinhood wants people who will trade actively, generating more order flow. The 3% bonus is perfect for attracting people.
Robinhood can afford to give 3% because some whale is losing millions day trading.
No one with serious money is transferring to Robinhood, and that’s how they can afford it.
Robinhood is backed by Citadel. That tells you everything you need to know.
People don’t realize Robinhood can close your account at any time for any reason. If you get that 3% and they shut you down after 4 years, you’re out of luck because you didn’t make the 5-year requirement.