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RH is free and doesn't charge commissions. This should be a BIG RED FLAG that you are the product and not the customer. In general, if you aren't paying, they
by dheera 6y ago
RH is free and doesn't charge commissions.
This should be a BIG RED FLAG that you are the product and not the customer. In general, if you aren't paying, they have no interest in keeping you happy.
- ghaff 6y agoFor regular purchases, most large brokerages don't charge commissions these days on most purchases. Not a particular fan of RH but the fact that they don't charge commissions isn't any more of a flag than in the case of Fidelity.
- suifbwish 6y agoWhere do brokerage firms that don’t charge for trades or membership make their money from then?
- deelowe 6y agoAlmost no one charges commission these days.
- FabHK 6y agoA bit like the forex shops at airports that sell you the pound for $1.47, and buy it for $1.27, but charge "no commission"...
- ghaff 6y agoObviously brokerages still make money in lots of ways such as low interest on cash accounts, fees on their own mutual funds, etc. But the point is that there's noting unique about RH not charging commissions.
- deleted 6y ago[deleted]
- astrange 6y agoRH isn't free, you can upgrade to a paid account.
- Dylan16807 6y agoThey skim a little bit off each trade, but in a way that doesn't cost the consumer more than the sticker price. It's basically a commission and every broker does it, so no red flag.
- lupire 6y agoDo RH users get worse prices than commission brokers?
- Dylan16807 6y agoDepends on which broker. But generally it's somewhere around a penny so for most trades even if you're paying more per stock it's a better deal than even a very cheap direct commission.