They also don’t support joint accounts which is the blocker for me.I'm also undecided on the 1 percent bonus. One of the issues is they do not support SpecID when selling assets unless you contact support each time you want to do something. I just confirmed this via chat a few days ago. They are working on implementing this, but it sounded like it's at least a few months away.I am cherry picking the features that provide the most value to me and at an acceptable risk relative to the other brokerages.For VTI traded during market hours, I think that PFOF would be negligible. Probably much less than 0.02%.I have a brokerage and a Roth at Robinhood that I opened for the ACAT transfer bonuses.
I'm thinking about transferring a portion of my paycheck to purchase VTI in the brokerage because of the 1% unlimited deposit boost they will be offering with Gold starting in May. One concern I have is whether the PFOF will essentially cancel out the 1% bonus. If I'm paying 0.6% premium to purchase VTI at Robinhood, then the bonus is really zero after taxes (assuming 40% combined tax rate). Can someone please explain PFOF? How much extra will I have to pay to purchase VTI at Robinhood as compared to Fidelity?
Thank you.
A reasonable absolute upper bound on the amount RH could receive as PFOF is the bid/ask spread. The median spread on VTI is 0.01% over the past 30 days.
If you traded when the market is closed, traded a security that had a much wider bid/ask spread, or traded things like options, you'd be a more profitable customer. I "urge" you to consider doing so for the benefit of presumably unprofitable customers like myself, so that Robinhood has this promotion again.
3% Roth ACAT Bonus: Yes
1% Brokerage ACAT Bonus: Yes
Stock lending: No
$1k Margin: Yes
DRIP: Yes
1% Brokerage ACH Bonus (starting in May): Undecided
Stay under SPIC limit: Undecided
Statistics: Posted by ShadowRegent — Sat Apr 20, 2024 4:37 pm — Replies 1869 — Views 153787