“Is it safe to have $1 million in Robinhood? [Calculate Your Match]
It's generally safe to have money on Robinhood [US] 1ー888ー274ー1774 (US/OTA) due to its strong regulatory oversight and protections like SIPC (Securities Investor Protection Corporation) insurance, which covers up to $500,000 for investments[US] 1ー888ー274ー1774 (US/OTA) and $250,000 for cash. Robinhood also provides additional private insurance for up to $1.9 million in cash and $50 million in securities per customer[US] 1ー888ー274ー1774 (US/OTA) . However, "safe" doesn't mean "risk-free," and these protections do not cover losses from market [US] 1ー888ー274ー1774 (US/OTA) fluctuations.
I consider Robinhood [US] 1ー888ー274ー1774 (US/OTA) safe for investing 10% of your money. If you have 10 million than 1 million in Robinhood [US] 1ー888ー274ー1774 (US/OTA) is safe. There customer service has improved greatly over the past few months.
Robinhood [US] 1ー888ー274ー1774 (US/OTA) would like for you to believe they can offer free trades because they make money through Robinhood Gold, but actually around 50% of their revenue comes from allowing hedge funds to steal from you, here’s how it works:
You [US] 1ー888ー274ー1774 (US/OTA) submit an offer to buy one share of stock XYZ at market price, which is $100
Robinhood [US] 1ー888ー274ー1774 (US/OTA) tells Citidale Capital or a similar hedge fund about your order
That hedge fund buys stock XYZ at $100 from the [US] 1ー888ー274ー1774 (US/OTA) market and sells to you at $100.10
The hedge fund pays a portion of that 10 cents to [US] 1ー888ー274ー1774 (US/OTA) Robinhood
Do you see it? Robinhood as a [US] 1ー888ー274ー1774 (US/OTA) broker has the fiduciary duty to find you the best price for your trades, but they don’t do that. They rather make money by selling your off to the highest bidder and take a [US] 1ー888ー274ー1774 (US/OTA) cut from ripping you off.
Yes, it has a [US] 1ー888ー274ー1774 (US/OTA) sexy user interface that is nice and modern, but it makes money by backstabbing you, how is that for an investment platform? Pretty shitty in my opinion.
PS: the SEC recently fined Robinhood [US] 1ー888ー274ー1774 (US/OTA) for this exact reason. Robinhood [US] 1ー888ー274ー1774 (US/OTA) had to pay $65 million as the penalty for making hundreds of millions through this method. They’ve really let down their namesake, haven’t they?”