3 ms·
It's more about the difficulty, but the cost is a part of it. People without a lot of money aren't going to go to the trouble of opening a brokerage to invest 2
by yellow_lead 7y ago
It's more about the difficulty, but the cost is a part of it. People without a lot of money aren't going to go to the trouble of opening a brokerage to invest 200, 400, maybe $2000 dollars. Keep in mind you used to have to go to a physical brokerage or get on a call with an online firm before you could trade.
When it's an app, and you can do it all from your couch, maybe that makes it worth it.
- reaperducer 7y agoTo build on that further, if you only have $100 in your existing account to invest, you're may not think it's worth it to buy a stock if 35% of it is going to be eaten up in fees. But if you can suddenly invest 100% of that $100, then it's far more worth doing.
- kart23 7y agoYes. Robinhood has made it so easy for teens and college students to quickly open an account and start trading. Literally just click buy, like amazon. Other online brokerages are more complicated and can be intimidating to new traders. A lot of them dont have much money in their accounts, so no fees is pretty valuable for them and the social aspect is big too.