3 ms·

Wouldn’t it make sense for folks to distribute their cash among 2+ companies for investing? Also, many have zero fees, so what’s the benefit Robinhood has over

• thatguy0900 6y ago
  Robinhoods benifits is abstracting everything away so that it is very easy and straightforward to trade stocks and options on margin without having any idea about what's going on under the hood. It's not the only company doing that, though, webull is also really simple.
  • atombender 6y ago
    M1 Finance is another one. You don't need to trade at all. You just set your target allocation as percentages ("slices" of a "pie"), and M1 triggers the necessary buys and sells, which are also done as synthetic fractions of shares. It's all executed as market orders; you never see the trading. I don't use M1, but I think it's a much better model when you just want to manage something like a three-fund portfolio. This is how employer plans like 401(k)s work, after all. You set the target allocation and all the trading and rebalancing happens behind the scenes. Traditional brokerages like Schwab and Fidelity are really behind here in terms of UI. There's no technical reason not to offer a UI to automate target allocation.
    • thatguy0900 6y ago
      That does sound like a really interesting approach, sounds really cool. I have a feeling alot of the people on apps like robinhood are less interested in serious long term investment vs speculating short term, though. Or at least alot of the new people are.
• deleted 6y ago
  [deleted]
• polka_haunts_us 6y ago
  That's what I do, my IRA is via TDAmeritrade which is mostly just a S&P Index fund, and then Robinhood is where I stick my "Loadsamoney" that I'm actually at risk of moving around sooner than the next 6 months.