Matching IRA from Robinhood

[Bubba]

Dear all,

So, I recently saw this gem https://robinhood.com/us/en/support/art ... ributions/. WOW! I have understood from the reading that this also includes IRAs, which is a massive benefit. They will match 1% and increase this to 3% if you are a Gold member. I've calculated the amount this could benefit you to be over $15k (assuming you get the $195 extra per year, hold for 20 years and make an approx. 12% per year) over a longer period of time. What a deal!

My question to anyone here is what experience you have with these guys?

I've been using Fidelity for my IRA and I've been very satisfied. Still, I can't overlook the extra money. So, that's why I'm asking you guys.

Oh and one caveat. You get 1% if you're not paying $5 p/month into the Gold membership (which gets you a 3% match). The Gold membership is quite worth it to get a 3% match considering that this could be extra cash into a Roth.

[Aitrus]

I'm very wary of Robinhood. They've had a number of shenanigans over the years, hinting at shady and less-than-honest business mindset.

They've been fined $65 mil by the SEC in 2020, have been under investigation for possible market manipulation, and were one of the major players involved in the crazy short squeeze episode of GameStop by a bunch of Redditors in 2021. None of this gives me warm fuzzies with the idea of my money in their hands.

I view them as a case of "If it looks too good to be true, it probably is."

https://en.wikipedia.org/wiki/Robinhood ... troversies

Investopedia gives them 2.7 / 5 stars (the third lowest ranking they currently have for online brokers), and notes that the company's motives have been called into question, they have a major lack of transparency, have allowed security breaches, experience site / trading outages, lack of investor education / advice, customer service is lacking, etc.

https://www.investopedia.com/robinhood-review-4587919

[bloobs]

I agree with Aitrus, they give me the Sam Brinkman / FTX creepy vibe

[Bubba]

I'm very wary of Robinhood. They've had a number of shenanigans over the years, hinting at shady and less-than-honest business mindset.

They've been fined $65 mil by the SEC in 2020, have been under investigation for possible market manipulation, and were one of the major players involved in the crazy short squeeze episode of GameStop by a bunch of Redditors in 2021. None of this gives me warm fuzzies with the idea of my money in their hands.

I view them as a case of "If it looks too good to be true, it probably is."

https://en.wikipedia.org/wiki/Robinhood ... troversies

Investopedia gives them 2.7 / 5 stars (the third lowest ranking they currently have for online brokers), and notes that the company's motives have been called into question, they have a major lack of transparency, have allowed security breaches, experience site / trading outages, lack of investor education / advice, customer service is lacking, etc.

https://www.investopedia.com/robinhood-review-4587919

Now that you mention this, I do remember reading about this in the news. Not good. I did read the investopedia review and they do not put into question Robinhood's credibility (although lack of transparency is a thing). I'll have to investigate further. Thanks for the comments!

[jimcasada]

Robinhood shares drop 13% after reporting big declines in trading volume and revenue

https://www.cnbc.com/2023/11/08/robinho ... idappshare

I've never done anything via Robinhood, but I know that they are popular with a lot of my younger friends.