Robinhood, the commission-free trading app, has grown into a popular platform for investors over the past few years.
However, despite its many benefits, some users have decided to quit using the app.
In this article, we will take a look at some of the reasons why people quit using Robinhood.
One of the most common reasons is the app's past outages. In 2020 and 2021, Robinhood experienced several outages due to the high volume of retail traders using the platform.
These outages resulted in users not being able to buy or sell stocks. Although any platform can experience outages, this has made some users question the reliability of the platform.
Another issue that has been raised is that Robinhood gamifies investing.
Some have claimed the app's interface is "designed to make trading stocks seem like a game," which could lead users to take unnecessary risks.
While Robinhood was the first brokerage to offer zero-commission trading, this is now a standard feature for many other brokerages.
As a result, some users may feel that the app is no longer offering them any unique benefits.
Lastly, Robinhood's payment for order flow (PFOF) business model has come under scrutiny.
This means that the app makes money by selling users' orders to market makers, rather than sending them directly to exchanges.
Some users do not like this model and prefer to use brokerages that do not accept PFOF, such as Public.
In conclusion, while Robinhood has many benefits, such as commission-free trading, fractional shares, and a retirement account with a 1% match, it is not for everyone.
It's important to choose the platform that best suits your investment needs and preferences.
This article was generated using automation technology, and thoroughly edited and fact-checked by an editor on our editorial staff.