Is Robinhood Safe?
Experts weigh in + why I moved my funds off the platform
I don’t want this post to be perceived as me bashing Robinhood.
I used them for a very long time, and I’m grateful for the precedent that they set across the industry — that trading should be free.
They’ve continued to innovate and offer interesting products that other brokerages do not (like their new Roth/Traditional IRA accounts that come with a 1% match).
Hopefully, other brokerages will soon follow suit and offer a matching program.
Lastly, they’ve become popular amongst young investors, and investing using Robinhood is superior to not investing at all.
With all of that said, they have struggled as a company, have been losing money, are facing multiple lawsuits, and their customer support isn’t the greatest… thus I’ve decided to discontinue using them.
What if Robinhood goes bankrupt?
I have no idea if Robinhood will be around in the next 5, 10, or 15 years.
This is pure speculation on my end, but I’d assume there’s a higher probability of them being acquired by a larger brokerage before bankruptcy.