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Yes, I would be happy to see more of the criticism aimed at Robinhood focus on its more pointed flaws as an actual brokerage. I used it for “fun money” speculat
by mustacheemperor 5y ago
Yes, I would be happy to see more of the criticism aimed at Robinhood focus on its more pointed flaws as an actual brokerage. I used it for “fun money” speculating/investing because of the easy interface, but it has repeatedly failed to transfer into my fidelity account. The transfer will succeed partially, leave a ton of margin debt in my fidelity account, and then reverse entirely in a few days. When the transfer does succeed, I still manually need to move the shares from margin holdings to real ownership because you don’t actually own the stocks you hold on robinhood. And Robinhood doesn't do much to make this process easy or well supported because they don’t want you to use another broker anyway.
During the GME debacle I decided to close my account and migrate entirely to fidelity and the transfer half-completed like described above, then failed entirely. It seems to me Robinhood was using my money to meet other obligations during a liquidity challenge.