I’m thankful to brokers like Robinhood and Webull for putting so much pressure on the brokerage industry that they have now started offering us zero commissions. This was long overdue and with that being the case, I am now back to trading with my regular brokers.
I noted that there are compromises to be made when switching my active trading to brokers such as Robinhood. However, because of how much it costs an active trader each year, it was worth it. But, now that the mainstream brokers are now offering zero commissions with their already extensive services, I had to go back because it is in my best interest. This doesn’t mean I have already closed my Robinhood account, the same way I didn’t close my other accounts when I switched my active trading to Robinhood. However, in the future, I may consider doing that after transferring my investments to a different broker.
There is still a place for Robinhood with new investors because it keeps trading rather simple and that is very powerful. However, remember that they do not yet offer services such as dividend reinvestment, joint accounts, telephone support, retirement accounts and other features and services that are offered by their mainstream counterparts. As a matter of fact, they are not yet offering me interest on cash I would have there and with the recent announcement that they have pulled their bank charter application, I cannot say for sure where that leaves us. They have simply lost their edge now that the other institutions are offering zero commissions.
Do not feel sorry for Robinhood and the likes because they will be fine and I suspect they may be bought out in the near future by some institution looking to snatch up such a user-base.