Forum Thread

robinhood a scam?

234 68 February 3, 2018 at 02:15 PM
Deal
Score
0
1,459 Views

Thread Details

0 Deal Score
1,459 Views
Is robinhood a scam? they don't charge fees for trading stocks

would it be safer to go with etrade?

Community Wiki

Last Edited by bkkebi February 6, 2018 at 11:26 AM
I have personally use it for two years, so far so good. Go here for more details.

www.robinhood.com [robinhood.com]

13 Comments

1

Sign up for a Slickdeals account to remove this ad.

This comment has been rated as unhelpful by Slickdeals users
Joined Oct 2013
L20: Master
1,919 Posts
2,758 Reputation
Pro
#3
Robinhood is not a scam, just another startup looking to disrupt an industry. They didn't have the expertise on industry rules and regulations, so everything they planned on doing to generate income thus far has failed. I may have recommended them if you only have less than 5k to invest, yet their new venture into crypto trading can easily put this company out of business in one day due to settlement of these trades. Schwab, Fidelity, TD Ameritrade, and etrade are all good choices. It all depends on your own personal needs and level of experience.
Reply Helpful Comment? 2 0
This comment has been rated as unhelpful by Slickdeals users
Joined Dec 2005
L6: Expert
1,229 Posts
914 Reputation
#4
Not a scam. I've seen complaints that they don't process orders as quickly as some day traders would like, but it is perfect if you are more of a buy-and-hold trader and don't need all the frills. I just wish they had a website where I could check on my portfolio (app only right now) and the ability to open IRA accounts.

Quote :
How does Robinhood make money?

With Robinhood Gold, you get up to 2x your buying power and access to after hours trading for as little as $6 per month. This is the only product Robinhood charges you for, and is completely optional. Trading is still commission free.

Additionally, Robinhood earns revenue by collecting interest on the cash and securities in Robinhood accounts, much like a bank collects interest on cash deposits.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Jan 2014
L1: Learner
1 Posts
10 Reputation
#5
Robinhood App is definitely not a scam. I joined in July 2017. I don't know the context from which this notion was thought, but I'd suggest to everyone concerned, they go through the signup process and read the disclosure statement.

They have thousands of commission free trades on NASDAQ, NYSE, S&P, ETFs from those exchanges and now have added 2 cryptos to Buy/Sell. This does not include all listed companies and does not include OTC pink sheets, or foreign markets. Those trades require PHONE assistance and DO HAVE COMMISSIONS associated up to $50. That's just one of the 6 methods that require commission. But again, I suggest going through the signup process and read /print all highlighted disclosures for your comfort , reference & understanding.

Hope that helps!
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Mar 2010
L3: Novice
234 Posts
68 Reputation
Original Poster
#6
can robinho or go belly up and take your money with them?

someone was saying if they start doing crypto currency they could very well be a likely possibility
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Jan 2006
L6: Expert
1,173 Posts
138 Reputation
#7
Quote from bimmerboy
:
can robinho or go belly up and take your money with them?

someone was saying if they start doing crypto currency they could very well be a likely possibility
Protected by SIPC but getting back your money will take months to sort out most likely, especially if they have to liquidate the company based on crypto trades

https://www.sipc.org/for-investor...stor-faqs/
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Nov 2014
L10: Grand Master
14,932 Posts
2,784 Reputation
Pro
#8
Quote from bimmerboy
:
can robinho or go belly up and take your money with them?

someone was saying if they start doing crypto currency they could very well be a likely possibility
Yes they can.

Quote from coolbeanz
:
Protected by SIPC but getting back your money will take months to sort out most likely, especially if they have to liquidate the company based on crypto trades

https://www.sipc.org/for-investor...stor-faqs/
That only applies to one asset. That asset being cash.

It does not apply to assets like stocks, bonds or crypto. No program protects you from that. You gamble on assets and it's just like you are gambling at the casino. If you lose, you lose. If you bought Palm at $100, the government won't make up for your loss when they went to $0. If you bought bitcoin at $19,000. They won't make up for bitcoin trading at $6,500.
Reply Helpful Comment? 0 0
Last edited by ghostofposterspast February 5, 2018 at 12:44 PM.
This comment has been rated as unhelpful by Slickdeals users
Joined May 2007
Mmmm. Any Slick Deals?!!
6,698 Posts
7,485 Reputation
Pro
#9
Quote from ghostofposterspast
:
Yes they can.



That only applies to one asset. That asset being cash.

It does not apply to assets like stocks, bonds or crypto. .
SIPC protects Cash, securities and bonds not just cash when broker belly ups, within limits excluding the loss of the actual value of the security if there is still value in that security.

https://www.sipc.org/for-investor...c-protects
Reply Helpful Comment? 0 0
Last edited by hapollo February 5, 2018 at 12:56 PM.

Sign up for a Slickdeals account to remove this ad.

This comment has been rated as unhelpful by Slickdeals users
Joined Dec 2005
L6: Expert
1,229 Posts
914 Reputation
#10
Quote from ghostofposterspast
:
That only applies to one asset. That asset being cash.

It does not apply to assets like stocks, bonds or crypto. No program protects you from that. You gamble on assets and it's just like you are gambling at the casino. If you lose, you lose. If you bought Palm at $100, the government won't make up for your loss when they went to $0. If you bought bitcoin at $19,000. They won't make up for bitcoin trading at $6,500.
If you buy a share of stock, it is yours regardless of what happens to the brokerage. No, SIPC doesn't protect the value of shares, but you still own a share of the [failed] company. Wink
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Nov 2014
L10: Grand Master
14,932 Posts
2,784 Reputation
Pro
#11
Quote from theST0RM
:
If you buy a share of stock, it is yours regardless of what happens to the brokerage. No, SIPC doesn't protect the value of shares, but you still own a share of the [failed] company. Wink
Exactly. Except in terms of crypto, they can not propagate that information out the rest of the blockchain. In that case you don't own a thing and you just lose it all. Look no further than Mt. Gox for an example.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Jan 2006
L6: Expert
1,173 Posts
138 Reputation
#12
Quote from ghostofposterspast
:
Yes they can.



That only applies to one asset. That asset being cash.

It does not apply to assets like stocks, bonds or crypto. No program protects you from that. You gamble on assets and it's just like you are gambling at the casino. If you lose, you lose. If you bought Palm at $100, the government won't make up for your loss when they went to $0. If you bought bitcoin at $19,000. They won't make up for bitcoin trading at $6,500.
We are talking about the stocks in the account if the broker (RobinHood) goes belly up, SIPC will get your stocks back.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Nov 2014
L10: Grand Master
14,932 Posts
2,784 Reputation
Pro
#13
Quote from coolbeanz
:
We are talking about the stocks in the account if the broker (RobinHood) goes belly up, SIPC will get your stocks back.
We were talking about crypto, not stocks.

Regardless, SIPC does not need to get anything back. Since with a broker or not, you own the stocks. Those are held at a clearing house for you. Not by the broker. The big thing SIPC covers is the cash in the account.

Regardless, back to the question posed by that posters specifically related to crypto.

"What SIPC doesn't cover
SIPC does not cover:

• Investments in commodity futures, fixed annuities, currency, hedge funds, or investment contracts (such as limited partnerships) that are not registered with the Securities and Exchange Commission."

That would be crypto.
Reply Helpful Comment? 0 0
This comment has been rated as unhelpful by Slickdeals users
Joined Jan 2006
L6: Expert
1,173 Posts
138 Reputation
#14
N
Quote from ghostofposterspast
:
We were talking about crypto, not stocks.

Regardless, SIPC does not need to get anything back. Since with a broker or not, you own the stocks. Those are held at a clearing house for you. Not by the broker. The big thing SIPC covers is the cash in the account.

Regardless, back to the question posed by that posters specifically related to crypto.

"What SIPC doesn't cover
SIPC does not cover:

• Investments in commodity futures, fixed annuities, currency, hedge funds, or investment contracts (such as limited partnerships) that are not registered with the Securities and Exchange Commission."

That would be crypto.N
Negative, original thread was talking about stocks and moneys, then the subject was what if they go belly up from taking on free crypto trading - would the stocks and money be safe, and the answer is yes , covered by SIPC.


Cryptocurrency is not covered by SIPC which everyone knows duhh LMAO
Reply Helpful Comment? 0 0
Page 1 of 1
1
Join the Conversation
Add a Comment
 
Copyright 1999 - 2018. Slickdeals, LLC. All Rights Reserved. Copyright / Infringement Policy  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)  •  Interest-Based Ads
Link Copied to Clipboard