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Only for small accounts. For large accounts with large transactions that fee is the least of your worries. Spread, execution quality, speed of transfers, margin
by pishpash 8y ago
Only for small accounts. For large accounts with large transactions that fee is the least of your worries. Spread, execution quality, speed of transfers, margin and deposit rates, reliability/availability and yes, events like this or even the possibility of robinbros "breaking" some feature you rely on, would be. Don't be myopic.
I hope RH grows with its customers, otherwise it'll eventually be outgrown by them. One of the most obvious and biggest disruptions that still hasn't happened is to let you set a custom portfolio on autopilot. At the end of the day that's what anyone should want.
- mholmes680 8y ago>>to let you set a custom portfolio on autopilot Can't you invest in a set of 5 passive ETFs and forget about it for 40 years? Or even build your own ETFs for that purpose: https://www.motif.com https://www.motif.com? Or are you talking about "if risk of market crash is too high, sell everything for a bit -- buy back in when this calms down" type stuff?
- pishpash 8y agoI mean things as simple as rebalancing, to a bit more complicated like tax management, or trading rules. I want the mechanics of portfolio management, but I don't want somebody else's portfolio. You're still choosing from somebody else's portfolio with Motif. If somebody wants to disrupt, quant hedge fund for retail investors would be the one but I suspect it's never going to happen because of the perverse incentives that exist to not do that. There used to be the Quantopian-Robinhood method but neither side wanted to go in the direction. I don't see these firms as truly disruptive.