What to do with Robinhood now?

[Mr X]

Like others, I have a good amount of TSLA I'm holding with Robinhood.


With everything that's going on, there are talks about Robinhood possibly going under


If they are to go under, would I lose all my shares/money?


Should I be looking to transfer my shares/money to another brokerage or just leave it with RH?


If true, in a way, this is unfortunate because I'm literally just holding TSLA. I don't trade or do margin calls or anything. I really like the Robinhood layout and not paying any fees but also don't want to lose my money so not sure what I should do


Thoughts?

 

[DontBetAgtsEln]

Who is saying that they are possibly going under?

P.S. I'm staying with RH.

Not advise!!!

 

[LN1_Casey]

Like others, I have a good amount of TSLA I'm holding with Robinhood.


With everything that's going on, there are talks about Robinhood possibly going under


If they are to go under, would I lose all my shares/money?


Should I be looking to transfer my shares/money to another brokerage or just leave it with RH?


If true, in a way, this is unfortunate because I'm literally just holding TSLA. I don't trade or do margin calls or anything. I really like the Robinhood layout and not paying any fees but also don't want to lose my money so not sure what I should do


Thoughts?

I don't think RH will completely die off, even if they do, they'll be taken over from another brokerage and the shares transferred to the new agency without loss to the members.

Your shares belong to you, not to RH.

That being said, I can't advise one way or another about if you should transfer your shares out of them to save any future headaches. It may be simpler to do so now, but RH doesn't receive transfer of shares (I tried when I left E*trade), so it'd be a one and done transfer if you do.

 

[gigawatt1010]

Will watch this thread closely as I'm in the same boat. If it weren't for TSLA, I wouldn't even be on RH. I'm definitely not a well-seasoned trader and only own TSLA and a bunch of other EV stocks that I lucked out on (NIU and NIO). I'm sure one of the more seasoned veterans who knows what they're doing could offer up some useful advice.

 

[Featsbeyond50]

If you're just holding, transfer to Schwab or Fidelity. Advice (I'm not shy. Unless a camera's pointed at me)

 

[UCF3]

Robinhood Facing Multiple SEC Investigations Into Its Business Practices

“Robinhood makes money in a variety of ways, although selling client order flow to third-party firms like Citadel Securities and Two Sigma Securities is a major driver of revenue. Robinhood charges market makers a percentage of the spread on each trade it sells, compared to a fixed amount—which some critics say creates a conflict of interest for the company. A bigger difference between the bid and asked price means Robinhood and other firms profit.”

If you aren’t paying for a product, you are the product!

 

[ByeByeJohnny]

I doubt more than a million or two accounts will actually be moved. Sucks for them but that'll probably only set their growth back half a year or so.

As long as there are no regulations that puts a stop to what they are doing. E.g. making money from selling retail investors information they'll be fine.

They've already been through a couple of scandals with no lasting effects. True this is on a different scale but other than maybe an embarrassing congressional hearing and an IPO in 2022 at the earliest instead of possibly this year not much will change.

 

[UnknownSoldier]

Everyone offers free trading now. There's no reason to stay on Robinhood. Just transfer your account to a real broker.

 

[Boomer19]

like i always say, fidelity and IB the best, but TD/SCHW better than RH too

that said, i doubt RH going anywhere. they just raised 3.4b in like two business days

 

[SabrToothSqrl]

i moved to fidelity long ago. I'm happy.

 

[heltok]

George Hotz said it well in a video. He likes companies that have their interest aligned with the customers. Ie Apple, Amazon, Tesla. They make money by offering their customers value with their products and services. Then there are the companies that are not aligned with the customers, for example Google, Facebook, Robinhood etc. They make money by making their customer worse off. Their interests are not aligned with the customers. Sure they can not do it too much, then the customer would leave, but instead doing it little by little, manipulating the customer in stealth mode. These companies he doesn’t like.

Imo if we can, we have the responsibility to vote with our money and feet to support the companies we like and to do our best to not support the companies we don’t like.

 

[Cherry Wine]

that said, i doubt RH going anywhere. they just raised 3.4b in like two business days

Agreed.

There are things I liked about Robinhood -- I felt its UI made investing / trading very accessible as a novice, for instance -- but this latest issue was the last straw for me and I ended up transferring my account to IB. My portfolio is way above the SIPC coverage limit and I was not comfortable keeping an account that large with a company facing apparent liquidity issues. I would've liked to have gone to Fidelity, but their account creation was slammed the day I tried (this past Thursday), and I wanted out.

Also, the knowledge that I was getting suboptimal routing on my trades, couldn't trade options on day of expiration (though they just enabled that like two weeks ago) or submit market orders for options, and couldn't name a beneficiary or place my account in the name of a trust, always nagged at me.

I already miss Robinhood a little after muddling my way through IB's trading platform, but the peace of mind is well worth it.

 

[Big Earl]

I moved the bulk of my holdings from Robinhood to Fidelity on Friday. I’ll clear the rest out in a couple of weeks ... didn’t want to be left high and dry while things were getting transferred. Definitely not amused by what went down last week.

Fidelity’s information and data is much more complete. Robinhood is clean and streamlined, but it’s sorely lacking on the analysis side of things. As mentioned above, you’re the product, which always rubbed me the wrong way, but I let it slide because everything was so user friendly for a beginner. Now that I have a better understanding of the ins and outs of the market, a more advanced platform seems like the way to go.

 

[Sudre]

I have been looking for a platform that offers an APP that I like as much as RH. I have not found one yet. While everyone gets all excited over the costs and fees, that is only because now days many other places have started doing similar things to attract investors. All the free brokerages are just finding other crafty ways to charge their fees. Nothing is actually free. I knew that when I joined RH.

I have also never figured out why everyone has to have only ONE place to trade. I have three. There are always times when one brokerage or the other can't trade something for some technicality. You can keep your Tesla shares in your RH account and start another account with Fidelity, fund it and start building wealth there. There is no law that says you must have only 1. Plus with the different fee structures, depending on the trades and quantities of shares being purchased at once, it is cheaper to buy with one broker over the other.

Obviously if you are leaving RH because of the trade halting then you can't sign up with any of the other brokerages that did the same thing. I love how everyone is only picking on RH. RH halted trading for the same reason the others did. Drop the conspiracy theory. Not everything is a conspiracy. You better close your accounts with the others too and move to one that did not halt trading because if RH is going belly up for it the others are too.

"Vanguard, Charles Schwab, and Fidelity Investments, among others, have been experiencing outages, The Wall Street Journal reports. None of the brokerages would tell the WSJ specifically why the outages were happening. Also, Charles Schwab and TD Ameritrade are restricting trading around GameStop and AMC, as individual investors pile into these companies, MarketWatch reports."

Sounds like retail is just SOL and should close all accounts everywhere. LOL. In reality what will happen is people will rotate.

I know someone here will say, "I did not have any issues". and they are right. They did not. Other people did have issues on Fidelity too. (for example)