At Robinhood, you have to opt-in to Options and go through a questionnaire, though they push you to sign up for them. I don't have options enabled on my account.Robinhood is the only brokerage I'm aware of that sends out unmistakable signals encouraging small retail investors to invest in options. I might be wrong but my impression is that all accounts automatically have options trading enabled from day one--can anyone confirm/deny?
I signed up well after they paid a $70 million fine by FINRA, in part due "thousands of customers the firm approved to trade options even when it was not appropriate for the customers to do so". (Robinhood did not admit or deny the charges.)
In any case, every time I trade, I get the impression I'm getting noticeably worse order execution on my ETF trades at Robinhood compared with what I would get on similar trades at Vanguard, Schwab, or Fidelity. Robinhood also appears to reinvest dividends two business days later than Fidelity, or one business day later than Schwab. So, I do not plan to hold assets at Robinhood unless I'm getting a bonus for an amount that I expect to be many times more than what I lose on execution.
Statistics: Posted by Lyrrad — Tue Sep 24, 2024 7:37 pm — Replies 7 — Views 700