FYI Robinhood now has a “platinum desk,” which is unadvertised. Not sure where the asset cutoff is and the rep I asked refused to tell me. Apparently this “platinum desk” has been a thing for the past year, but there is absolutely zero info about it online. I’d think that if RH were trying to attract bigger accounts and increase AUM, they’d want to advertise this feature but what do I know?
That said, I sold some VTI and asked them to do a HIFO but sell only long-term shares. I reiterated this last point several times and the “Platinum desk” still got it wrong and sold shares regardless of short/long term. So, I still wouldn’t use Robinhood.
(I parked some assets there for the recent 2% bonus, I think Robinhood ended up giving me a little over $60K which is insane. Yes, I’m wayyy over SIPC limits and no, it’s probably not at all smart. That said, since I’ve disabled margin investing, my assets have to be legally segregated so hopefully the risk is minimal. And no, not all my eggs are in the RH basket, I still kept a decent amount at Schwab and Vanguard.)
In other words RH still sucks but I will take their money and then port my assets back out to Schwab or Fidelity once the 2 year holding period is up. My hope is that they get bought out by Schwab or Fidelity so my assets end up back at a real, reputable broker without having to wait out the two years.
The fact RH is rolling out a desktop platform, futures trading, events contract trading, etc. without even having the basics like being able to select tax lots is mind-boggling.
Also if you do use RH highly recommend you disable margin investing or they will loan out your shares without compensation and you’ll get a ton of substitute payments in lieu of dividends. Even using the “free” $1000 margin included in RH Gold is a sucker’s game for this same reason. You’ll use $1K margin and RH will lend out your entire portfolio and you could incur thousands of dollars in additional taxes depending on the size of your portfolio.
That said, I sold some VTI and asked them to do a HIFO but sell only long-term shares. I reiterated this last point several times and the “Platinum desk” still got it wrong and sold shares regardless of short/long term. So, I still wouldn’t use Robinhood.
(I parked some assets there for the recent 2% bonus, I think Robinhood ended up giving me a little over $60K which is insane. Yes, I’m wayyy over SIPC limits and no, it’s probably not at all smart. That said, since I’ve disabled margin investing, my assets have to be legally segregated so hopefully the risk is minimal. And no, not all my eggs are in the RH basket, I still kept a decent amount at Schwab and Vanguard.)
In other words RH still sucks but I will take their money and then port my assets back out to Schwab or Fidelity once the 2 year holding period is up. My hope is that they get bought out by Schwab or Fidelity so my assets end up back at a real, reputable broker without having to wait out the two years.
The fact RH is rolling out a desktop platform, futures trading, events contract trading, etc. without even having the basics like being able to select tax lots is mind-boggling.
Also if you do use RH highly recommend you disable margin investing or they will loan out your shares without compensation and you’ll get a ton of substitute payments in lieu of dividends. Even using the “free” $1000 margin included in RH Gold is a sucker’s game for this same reason. You’ll use $1K margin and RH will lend out your entire portfolio and you could incur thousands of dollars in additional taxes depending on the size of your portfolio.
Statistics: Posted by frcabot — Sun Nov 10, 2024 11:33 pm — Replies 6 — Views 334