In a recent article, Travis mentioned Robinhood taking measures to ensure it doesn’t become insolvent. I wanted to find out more about the risks of that ever happening, and what that would mean if it did.
My husband and I are in our mid to late 50’s, each has a retirement plan with work, and currently contribute monthly to Wealthfront. But we started all of that rather late in life. I researched a couple years ago when I saw Biotech looked like it was going to come out with a new Alzheimer’s drug treatment. I ended up choosing Robinhood and bought two shares. Over time, I’ve picked up various other stocks, sold some, and have managed to make $3,600 net over that time. (I made some with Ameritrade too). But I currently have approx $6,000 in Robinhood, and it never once occurred to me that the whole company could fold. I assumed Robinhood made money with its premium options, but I’ve always been surprised I’ve never had to pay anything to trade with their system. So to me it seemed irrelevant to their company whether individual investors lost money.
I know this betrays being hugely uninformed about how all this works. I’ve been reading and learning a lot over the last few years as time allows.
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