So I Wanted to spend this video talking about a real broker, but instead we're going to be talking about Robin Hood Fine, calm down you featherheads. The truth is I've always given Robin Hood a hard time, but in this video, I'm actually going to be explaining why I don't personally use Robin Hood and this video isn't to rail on Robin Hood In fact, Robin Hood has revolutionized trading honestly. I Have no doubt that without Robin Hood the trading and investing niche would look a lot different and there'd be a lot less people of my generation actually interested in the markets. So obviously much respect to Robin Hood But the truth is, picking brokers is very similar to dating.

You date around a bit to see which broker you like and then you use the one that works best for you and sometimes you pick someone that ends up selling you out to high-frequency traders don't you hate when that happens? But hey, at least they have a pretty app. But anyways, I Wanted to give praise where praise was due just because I know that a majority of my audience does use Robin Hood and if you don't have any issue with them, that's fine. I too Used to enjoy playing with broken crayons, but the fact of the matter is there's no broker that's going to fit you perfectly. and I cannot stress this enough.

Everything in this video is really just my opinion and some people they don't like my opinion so form your own opinion. But anyways, the only thing that I ask in return for this ravishing video is that you click that ravishing like button. Also, feel free to let us know what you think about Robin Hood below. Am I being too harsh on that? Am I being too nice to them? What if your experience has been, what have your experiences been? Okay, so to start, Robin Hood has got quite a lot of bad press within the last six months.

Started when someone exploited a loophole in the software that allowed users to get infinite leverage aka trade with massive amounts of margin. This created a frenzy where tons of people exploited this loophole and it raised many questions as to Robin Hood's stability. But this was really just the beginning of Robin Hood's problems. A few weeks ago on one of the biggest gains of stock market history, Robin Hood crashed and was down the entire day.

Then the next day they were also down. Then later on they were also down a third time. and then yesterday on one of the biggest crashes in history. Guess what happened? Well Robin Hood was late to the gate again.

Robin Hood Always quite the tease, but no worries. Robin Hood had you covered. For folks who couldn't buy or sell their stocks and options, the company promised to make it all up with a fifteen dollar compensation plan that should make it all better. Thank You Papa Feather.

But anyways, this really raises my first point and that is really questioning me. Reliability of Robin Hood As someone who works with a ton of short term positions in a variety of different ways, not being able to take advantage or to execute out of a position is really a disaster for me, especially if the closure day is one of the biggest gainers in stock market history. and I really don't want to be stuck on these types of days waiting for emails like this from Robin Hood In fact, it's so important for me to have reliability that I use two different brokers weeble and thinkorswim. That way, if one's not working or one's kind of laggy, I can use the other one and vice versa.

And the truth is that so far this year, both brokers have had some lags and both brokers have had some glitches. But at the end of the day, there's a difference between having a leg and then having a complete closure. An entire day of a complete shutdown is not the same thing as some lagging, but Charlie Robin Hood just had one day of shutting down. no, remember earlier Robin Hood had many days.

Point is, they have a shutdown and they don't learn their lesson and then they have another shutdown and they don't learn their lesson and they have another shutdown and so on. It really makes you think that they don't have the ability to solve the problem, but Charlie eventually they'll solve the problem. I Love me some seven Look I'm sure that they will solve this problem eventually, but for now, it's a problem that I just can't stomach on a more personal level. Let's give some anecdotal stories that I've personally been through in April 2019 when I was still using them quite often for my trading.

I had an issue where I discovered one of my swing positions and Tesla had sent a sell order without me ever pushing the order. I figured it was just like a one-off glitch and that it would just go away. But then all of a sudden I got notified of suspicious activity. So of course I tried to contact them through their support process which was an email and then I emailed them and then they didn't get back to the next day.

When they got back to me, they asked for this the social security date of birth. bla bla bla Fine, fine. I responded with that info. Then the next day they responded saying they've created a portal to continue dealing with this process.

Okay, well, it's been two days at this point, but whatever. I'm patient, but then yet another three days after this. I get this not so prompt email back from them and they explained that a malicious party had access to your account credentials and was able to log into your systems using your username. and then of course I responded back and I resolved the issue and they got me back into my account.

But of course the customer service tried to point fingers and I'm not exactly a knucklehead like I do have knuckles and sometimes they go on my head, but they're trying to do a little bit of a bait-and-switch and say that it's my fault and that I should know somebody that's trying to break into my account. But obviously this was from their own security breaches and it's really quite irresponsible that they would have their customer service respond to their customers in this way. But with that aside, honestly, customer services aren't always representative of companies, so we'll just throw that aside. But just remember the depth of this on April 3rd is when I got locked out of my account on April 8th is when it was resolved.

If Robin Hood is this slow to respond to security breaches, then how can they even be trusted to keep your capital secure in the first place? And more yet, what kind of serious trader would keep their money with a broker that can't even figure out that you have a security breach for five days? It took them five days to be competent enough to fix this issue. but Charlie this was just your experience and it doesn't represent most people. Most people have never been locked out of their account. Well, that's probably true when you'll never have this experience yourself, but this is really just a pattern of behavior that I'm trying to show in this video.

this isn't a one-off problem if you look at this pattern of behavior. If this pattern of just disorganization on Robin Hood, it's actually quite easy to see that this is just how they handle their clients. Ok, next point: Robin Hood has a history of sort of misleading their clients. For example, back in 20 he came, they originally introduced that they'd be coming out with a savings account that paid 3 percent interest.

However, this was quite misleading as their savings account didn't offer the same protections as a real savings account does because it wasn't technically a savings account and regulators quickly clamped down on this. and then Robin Hood quickly changed the name from that cue a cash management account in order to save face and not get fined. which Ok, like. That's not something that really bothers me that much.

that's like a nitpicky thing. but again, this is a pattern of behavior. And then of course, they create a massive wait list for folks to join. I actually joined this in hopes of getting a review.

It shows you're like 150,000 thinline or whatever and I actually joined this. When this first came out just for purposes of this video, they put me on a waitlist and then they put me like 150,000 thinline. I'll show a picture of what this looks like, but this is a picture I stole. but I was on the wait list last time I looked I was like 80,000 in line and this was like last week and then all of a sudden and then all of a sudden on the eve of Robin Hood's credit problems.

Conveniently, they decide that they want my money Now decide. Hey, maybe we do want to take in more cash Now again, maybe this could be a coincidence. Maybe it's because of the fact that the interest rate just happened to be very low right now and maybe people are dropping off the way it was - that could be a potential possibility. Or maybe it's because the company has liquidity issues.

Who really knows? But it is coincidental timing. This is a pattern of behavior where they just sort of mislead clients and they sort of have just weird ways of conducting their business. Okay, now. Lastly, and perhaps most importantly, I think this is probably what most people wanted to watch, but I ranted about a bunch of other things.

But anyways, in this section of the video, we're going to be talking about executions. How does Robin Hood fare with executions? What should we do, Sir, we shall execute. But execution means the speed at which you're getting filled. and of course, the price point.

And for traders, obviously, the speed of execution is quite important. It can mean the difference of a profitable position in a position that you need to throw in the dust like a pig. And brokers especially Robin Hood have a history of sort of sloppy execution and having a widespread which means slower fills and worse prices. But honestly, as of late in my experience, this hasn't really been the case.

In fact, almost all the brokers that went commission-free have seen some lower execution speed and some more spread. and at the end of the day I would say that Robin Hood is quite average. This wasn't always true, but I think that they have improved their execution speed quite a bit since they've started and since I started using them in 2018. But when I say their average I should be fair to the rest of the industry.

Robin Hood seems to have average execution speed when they're actually up and again. that's not always guaranteed because they crash a lot. But I actually think that one of my other brokers sneakers, one tends to execute a lot slower than Robin Hood on a ton of different days on days where I tested Robin Hood before making this video, I actually found that this is a pretty consistent trend, but I don't know that it's going to be true for the long road, but so far it has been quite true. So I can't really fault Robin Hood they're on their execution speed, but it's not exactly a Pro either.

To have average execution speed, you want to have good execution speed, above-average execution speed the best execution speed. And I will say that I do think that we will tends to perform consistently better than both thinkorswim and Robin Hood when it comes to executing now. I don't know why exactly that is I Don't know which clearinghouses they're using, but for some reason, we Bull does seem to execute faster pretty consistently. You can let me know in the comments section if you found that to be true as well.

but just in my experience, the performance on Weibo tends to be the gold standard of the three different brokers. But again, most people that are going to use Robin Hood don't really care that much about execution speed just because they're just sort of dabbling and trading, so it's not really that important to them. But if you're going to be serious about trading, this is something to consider. But anyways, in conclusion, I Really hope that this video didn't come across as too hard on Robin Hood I Really wouldn't want to offend you feather heads, but I Honestly believe that for most people, most of the time these issues aren't going to be that big of a problem.

But once you've been doing this for quite a while and you're getting serious about your trading, it starts to make sense to at least have a professional style broker that you can integrate into your trading. You're looking to be aggressive with your trading if you're looking for a reliable platform. I Just don't know that Robin Hood would be the best fit for people. And again, I Have no doubt that many, many people have made tons of money on Robin Hood But I think that over the long run there are better options out there.

and if you're one of those people, the question is what you have made more if you use the better broker. Would you have made more if you didn't have to deal with these crashes? Would you have made more if you didn't have to deal with execution, glitches, or anything of that nature. And what sort of losses can you avoid in the future by not being subject to these crashes? I Think these are legitimate questions that Robin Hood Clients need to ask themselves and I think these are legitimate questions that people that work at Robin Hood need to address. But for now, Robin Hood leaves a lot to be desired.

but Charlie what broker should I use instead? Well, honestly, I'm not going to be the one to answer that question for you. You are going to have to try out a ton of different brokers and see which one works the best for you. Again, it's quite like dating and in terms of my personal recommendation for folks, if you are a new trader and you're still looking for an intuitive and easy to use platform, I Always tend to send people over to Weibo because I think we both fits that crate the best. and from like 99% of people that sign up with Weibo I've gotten good reviews I Do recommend Weibo They are a commission free trading platform and it's free to try out, so you might as well check them out.

In fact, they actually give you two free stocks if you sign up using our link in the description below of course. I Never miss an opportunity to push that ravishing link. but again, honestly don't just take my word for it. Try out a ton of different platforms and see which one's the best fit for you.

It's like dating folks. yeah. I Personally use Weeble and Thinkorswim, but for you, you might find different ones or a good fit for you. Just make sure to have two different brokers, especially if you still want to use Robinhood Just make sure to have two so that you never get locked out of opportunities.

Okay, anyways. well I Hope that this video was insightful. If you have any questions, feel free to reach out to us in the comment section below or join us on our zip trader circle Facebook group. It's a free Facebook group Anyways, have a great day, stay healthy and trade like a spoiled brat.

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