Whether you currently have an existing account in Robinhood or Fidelity or you’re planning on building one. This information that I will share with you will definitely help you in your decision-making process. When it comes to choosing your brokerage and building your portfolio.
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Yes, I did switch to Fidelity from Robinhood and here’s why.
- Circle breaker broke Robinhood
The circus break that makes Robinhood crash repeatedly prevents me from buying or selling stocks. Whenever I want to is the main reason why I decided to leave Robinhood. Reliability and security are indeed the key qualities that a good brokerage should have, thus my decision.
- How Robinhood makes money
With the process of how Robinhood makes money, I would say that as a user of Robinhood. You do not get the most optimal buy and sell price unless you set a limit order. Robinhood has always been a commission-free platform and it does not give you the first priority when it comes to your buy and selling price. Basically, Robinhood makes money by the difference between the current market price and the order that you place.
- Slow deposit and withdrawal process
It usually takes 5-7 business days for you to put money in and out of Robinhood and land your money into your bank account.
- Lack of support
Due to the circus breaks, Robinhood gained a lot of exasperated customers and their slow customer support definitely did not help with the rage.
Now, let me give you a clear comparison between Robinhood and Fidelity.
Pros of Fidelity
- More sophisticated
You get to see more information about a specific stock with Fidelity.
- Faster to fill orders
Traditional brokerages like Fidelity do have priority when it comes to filling their orders so you get to fill your orders much quicker.
- Better prices
You will get better prices for both buying and selling because they get priority in terms of filling orders.
Cons of Fidelity
- Lack of human support
Based on my personal experience as a user of Fidelity, they need to step up their game in the customer support department.
- Less clean mobile interface
Robinhood users are usually quite pleased with how clean their mobile interface is and I must say that Robinhood’s mobile interface is more beginner-friendly compared to Fidelity’s.
If all of this is overwhelming and you’d rather let an expert assist you, I’d love to be a part of your journey to wealth building.
I will work with you and set up a SMART (Smart, Measurable, Attainable, Result Oriented, Timely) plan to develop an investing strategy that is aligned with your goals.