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Democratizing -investing- is a good thing. But Robinhood democratized -day trading-, i.e. gambling. I think Wealthfront or the few other similar companies actu
by jjeaff 5y ago
Democratizing -investing- is a good thing. But Robinhood democratized -day trading-, i.e. gambling.
I think Wealthfront or the few other similar companies actually democratized investing.
- kasey_junk 5y agoLet me play devils advocate for a minute. Robinhood had the clear market improvement of making trades cost zero dollars. Prior to their entry into the market $7 trades were considered cheap. Meanwhile wealthfront is marking up investment opportunities that are widely available in funds or etfs for much cheaper. I think wealthfront is much more predatory than Robinhood if judged on the basis of services rendered to informed actors.
- loeg 5y agoTrades of index mutual funds and ETFs held in the administrator’s brokerage were free for years before RH. (Eg, Vanguard funds at Vanguard and Fidelity funds at Fidelity.) What RH accelerated was $0 individual stock trades, which are not great for retail investors at any price.