Robinhood Investment. What's the catch?

There is zero catch and no benefit anymore now that all the trading platforms have free trades.

Literally the only good think about Robinhood is their app. I still moved my entire stock portfolio off of RH and over to Fidelity as soon as Fidelity started free trades

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Talk to me like I'm investment illiterate and have only dabbled in crypto. Any advice is appreciated.

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Well if you’re going to do more short-term trading then Robinhood seems like a good option, although I don’t know if short-term trading is a good option, especially starting out.

If you’re going to do more “investing,” (both taxable accounts as well as traditional and Roth IRAs) or at least holding for longer than a couple days, then I would recommend using another free application, M1 Finance (I have both). You can create your own portfolios (made up of pies, and subpies) or you Dan choose from a bunch of pre-designed portfolios that are tailored for specific investment goals. People can also share their portfolios and pies with one another.

In addition, it was one of the first to offer “fractional shares,” (Robinhood just started offering them as well) to buy as much or as little as one can afford (well $10 minimum trade amount) while maintaining the allocation specified. Dividends are also automatically reinvested (as long as one has $10 in the account; whether dividends alone or by adding enough to trigger a trade).

There are a bunch of other cool aspect to minimize taxes and taxable events like dynamic rebalancing, which involves buying more of underweighted stocks/funds when one invests to keep the allocation as well as some tax efficiency procedures when selling any assets.

Finally, if you have at least $10,000 in a taxable account you can borrow up to 35% of the account value at a low rate (3.5% or 3.25% if participating in its premium checking account), which is just margin account and line of credit without any credit pulls or anything.

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Talk to me like I'm investment illiterate and have only dabbled in crypto

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Like most people that pump Crypto