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Exchange risk is a real thing. For all the positives and fun that Robinhood provides, dealing with immature platforms that aren't backed in full by the faith o
by gargarplex 7y ago
Exchange risk is a real thing. For all the positives and fun that Robinhood provides, dealing with immature platforms that aren't backed in full by the faith of the US government and social contracts is in most cases not worth the cost.
- toomuchtodo 7y agoRobinhood customers are covered by SIPC [1]. Still, those customers should be using a mature brokerage (Fidelity, Schwab, etc). [1] https://www.sipc.org/for-investors/what-sipc-protects https://www.sipc.org/for-investors/what-sipc-protects
- gargarplex 7y agoThanks; I did not know that. I perceive that a mature brokerage would be more likely to be covered in the event of a "bailout" – are there any other advantages, e.g. 24x7 customer service via phone, including ability to place orders and receive immediate confirmation even when website is down?
- toomuchtodo 7y agoConsidering Robinhood's website instability, and their total lack of customer service, any mature brokerage would be a better option. Some (Fidelity, Schwab) even have branches you can walk into to get help if necessary. Schwab has $3.25 trillion assets under management (AUM), for example. If that isn't "too big to fail", I don't know what is. Disclaimer: Satisfied Schwab customer, no other relation