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I ask this literally every time... Explain-Like-I'm-Five: Why would you use Robin Hood instead of a normal brokerage like Vanguard, T. Rowe Price, Fidelity, Ch

by vbtemp 7y ago

I ask this literally every time... Explain-Like-I'm-Five: Why would you use Robin Hood instead of a normal brokerage like Vanguard, T. Rowe Price, Fidelity, Charles Schwab, etc that.. (1) already have commission free trades, (2) an app to make those trades, and (3) don't charge any fee for transferring your holdings in-kind to another institution.

a13n 7y ago
- When I created my Robinhood account, none of those brokerages had commission free trades. Also, what about commissions and exercise fees associated with stock options? Also free? I doubt it. - Still today, the UX of all of those other apps/websites (that I've used) is horribly dated, clunky, and slow. Robinhood is amazing to use. - Robinhood has a Cash Management account that pays me 1.35% interest on all my non-invested cash. None of these other services come close to competing with this. - Robinhood started a progressive movement with the mission of making stock trading more accessible to the lower/middle class. I love this company and brand. Schwab is just another faceless corporation who only offers free commissions because they had to to stay relevant.
nsx147 7y ago
Yeah you have those things partially because they were RH competitive advantage for a while till the rest caught up