fell to super strong support, there is no reason not to buy except the election
Is Robinhood a Scam?
The Verdict: No!
Robinhood is not a scam.
While it’s certainly important to note the ways that Robinhood makes money and to think about the limitations of the platform, neither of these things mean that Robinhood is dishonest or a bad company.
Robinhood is exactly what it claims to be–a company that is lowering the startup costs and brokerage fees to help investors with smaller amounts of cash get into the game.
Routing trades through high-frequency traders and generating interest on extra money might seem odd, it’s not really that different from charging flat subscription fees or brokerage rates.
Obviously, any company that you work with to get access to the stock market is going to need to make a profit.
Robinhood wants to do it in ways that don’t prohibit smaller investors from getting involved.
Additionally, while Robinhood doesn’t have mutual funds and focuses on high-flying individual stocks and crypto, you still have the choice in what you buy!
You can spread your money around the bigger companies to defray some risk.
You don’t have to go all in on a flashy startup to try and quadruple your money.
Like with any brokerage solution, Robinhood is going to give some advice but then ultimately get out of your way and let you play the market how you think is best.
You’ve got to be willing to perform your own research.
You need to do your best to use Robinhood as practical education and a hands on experience, but this will need to be supplemented with some more abstract education about risk and how to best invest to turn a profit.
Is Robinhood a Scam?
The Verdict: No!
Robinhood is not a scam.
While it’s certainly important to note the ways that Robinhood makes money and to think about the limitations of the platform, neither of these things mean that Robinhood is dishonest or a bad company.
Robinhood is exactly what it claims to be–a company that is lowering the startup costs and brokerage fees to help investors with smaller amounts of cash get into the game.
Routing trades through high-frequency traders and generating interest on extra money might seem odd, it’s not really that different from charging flat subscription fees or brokerage rates.
Obviously, any company that you work with to get access to the stock market is going to need to make a profit.
Robinhood wants to do it in ways that don’t prohibit smaller investors from getting involved.
Additionally, while Robinhood doesn’t have mutual funds and focuses on high-flying individual stocks and crypto, you still have the choice in what you buy!
You can spread your money around the bigger companies to defray some risk.
You don’t have to go all in on a flashy startup to try and quadruple your money.
Like with any brokerage solution, Robinhood is going to give some advice but then ultimately get out of your way and let you play the market how you think is best.
You’ve got to be willing to perform your own research.
You need to do your best to use Robinhood as practical education and a hands on experience, but this will need to be supplemented with some more abstract education about risk and how to best invest to turn a profit.