Is Robinhood legit?

[Anonymous]

I opened an account there a few days ago, but I didn’t like the feel of the place, if that makes any sense. I tried to close the account but it’s impossible. Their instructions point to options that don’t exist, and their chat line doesn’t work. You just wait forever and no one ever joins. I did some reading and that seems to be a common experience. Is it a real company or a scam?

[Anonymous]

It’s legit. They’re just shady.

[Anonymous]

It's a normal modern terrible tech company.

[Anonymous]

Robinhood is the best. Learn to use it and all they offer. My Robinhood account overtook my Fidelity account. It's so easy to use with up to date prices. They also give you your cash right away to buy something else. Same with transfer is if you sing up for gold $5 a month.
With Fidelity I have to sit and click around and then hope my own cash is available to trade again. Robinhood even gave me 3% Roth match and 4.75% for your cash just sitting there waiting to be invested.
I don't know anyone young who has Fidelity or other big banks before Robinhood app. All questions you have are available on their website. You really don't have a reason to call them too often unless investing is new to you. I've called once in 5 year, but don't even remember why.
Absolutely not shady and I can't wait for Vanguards of the world to go away.

[Anonymous]

This is so painful. It's like refusing to buy an Iphone because it's new technology and doesn't have a keyboard.

[Anonymous]

Anonymous wrote:Robinhood is the best. Learn to use it and all they offer. My Robinhood account overtook my Fidelity account. It's so easy to use with up to date prices. They also give you your cash right away to buy something else. Same with transfer is if you sing up for gold $5 a month.
With Fidelity I have to sit and click around and then hope my own cash is available to trade again. Robinhood even gave me 3% Roth match and 4.75% for your cash just sitting there waiting to be invested.
I don't know anyone young who has Fidelity or other big banks before Robinhood app. All questions you have are available on their website. You really don't have a reason to call them too often unless investing is new to you. I've called once in 5 year, but don't even remember why.
Absolutely not shady and I can't wait for Vanguards of the world to go away.

Well they’ve pissed me off to the point I want nothing to do with them. Their chat support window is obviously nothing more than something to waste you time with, there’s no one there. Then I got them to call me by pretending I had an investment question. The guy said sure, let me get you over to accounts. I was on hold for over an hour and then they hung up. It’s obviously a garbage company. I wish disease and misfortune on everyone that works there. And a miserable Christmas too.

[Anonymous]

So I did a lot more reading. There’s a ton of pissed off people out there, so I guess it is in fact a garbage company.

[Anonymous]

Anonymous wrote:It’s legit. They’re just shady.

🤣

But that’s true though

[Anonymous]

If you Google “Robinhood app malfeasance” this is what the AI search return spits out:


Robinhood, a stock trading app, has faced multiple incidents of malfeasance, including:

Misleading customers
In 2021, Robinhood was fined $70 million by the Financial Industry Regulatory Authority (FINRA) for misleading customers about their accounts and trading. The fine was the highest ever imposed by FINRA. The investigation found that Robinhood provided false or misleading information to millions of customers, including about their account balances and their ability to trade on margin.

Selling clients' orders
In 2020, the Securities and Exchange Commission (SEC) opened a civil fraud investigation into Robinhood after allegations that it sold clients' orders to high-frequency trading firms. Robinhood settled the claims by paying $65 million to the SEC.


Gamification
In 2024, Robinhood paid $7.5 million to settle allegations that it used "gamification" practices to encourage customers to invest. These practices included offering free stock rewards to new customers, and using push notifications to direct customers to invest in specific lists of stocks.

Data security breach
In 2021, Robinhood settled a class action lawsuit related to a data security breach by paying $20 million.

[Anonymous]

It’s a great GUI. That’s about it.

[Anonymous]

It’s gamification of stock trading. They are basically trying to turn all users into gambling addicts, swinging for fences with crypto, options, derivatives — I think they even offer easy margin

[Anonymous]

Anonymous wrote:It’s gamification of stock trading. They are basically trying to turn all users into gambling addicts, swinging for fences with crypto, options, derivatives — I think they even offer easy margin

lol. Their market positioning and branding are clearly not working. Yes they are legit. No they are not trying to turn people into addicts. They are trying to service a part of the population that is not, has not, and will not be serviced by other securities firms -- younger people, people with less funds to invest, tech savy who want to trade more. They don't offer real derivatives, options trading is there but limited and their crypto is very limited. You would do better at JP Morgan. In 5-10 years they either will be bought by a big bank or someone like google, meta, tesla.

[Anonymous]

Anonymous wrote:I opened an account there a few days ago, but I didn’t like the feel of the place, if that makes any sense. I tried to close the account but it’s impossible. Their instructions point to options that don’t exist, and their chat line doesn’t work. You just wait forever and no one ever joins. I did some reading and that seems to be a common experience. Is it a real company or a scam?

Send a certified letter requesting that they close your account and send you the proceeds. Give it a week and complain to finra

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s gamification of stock trading. They are basically trying to turn all users into gambling addicts, swinging for fences with crypto, options, derivatives — I think they even offer easy margin

lol. Their market positioning and branding are clearly not working. Yes they are legit. No they are not trying to turn people into addicts. They are trying to service a part of the population that is not, has not, and will not be serviced by other securities firms -- younger people, people with less funds to invest, tech savy who want to trade more. They don't offer real derivatives, options trading is there but limited and their crypto is very limited. You would do better at JP Morgan. In 5-10 years they either will be bought by a big bank or someone like google, meta, tesla.

Arguable. They are trying to gamify investing

[Anonymous]

avoid