Stay far away from Robinhood. What a bunch of scammers. Not only is their software terribly buggy - and in core functions, too, like... Oh, I don't know, calculating the actual portfolio value instead of giving a figure 200% off. But their customer service blatantly ignores droves of customers' emails when those customers report bugs or request that their so-called Instant account be degraded because it turns out to be something completely different than what is advertised.
Seems their game is to trick people into depositing money and then trap their money there if the person cares to leave, because that means RH can't front-run the person's trades anymore.
And this by the way is only one of their numerous issues.
No well informed person could conscionably recommend RH. In fact I wouldn't be too surprised if they get sued or even some sort of criminal charges.
I knew that Instant is a margin account. I didn't enter the terms ignorantly.
1. How does RobinHood make money?
2. Why are the bid-ask spreads so much greater on their platform versus others?
3. Why doesn't the application show you how much buying power is coming from the Instant account's margin account versus your own cash?
4. What will the SEC think of a company that misleads novice investor-consumers into a margin account that is branded merely as instant access to funds (even though the terms you have to accept state it's a margin account) and then obscures the actual amount of margin buying power to be used in the app's UI? It's absolutely in RobinHood's business model's financial interest to keep user's money in said margin accounts. That misaligns the company's incentives with the goals of the customers.
Seems their game is to trick people into depositing money and then trap their money there if the person cares to leave, because that means RH can't front-run the person's trades anymore.
And this by the way is only one of their numerous issues.
No well informed person could conscionably recommend RH. In fact I wouldn't be too surprised if they get sued or even some sort of criminal charges.