Free Financial Advisor : Worth The Price?
Free Financial Advisor : Worth The Price? : What is free? Much has been made of Robinhood’s free trading and many clients of our firm have asked why we still charge trading fees when Robinhood doesn’t.
Well, let me burst the marketing bubble of Robinhood, the trades are sold off and so economically there is nothing free about your transaction.
In fact algorithmic trading from Interactive Brokers will cost a few pennies and can allocate the position at lower price than Robinhood, so if you have the same shares at a lower price, but still paid a trading fee, you are a richer man.
And the goal of Wall Street and stocks is to increase our wealth and get richer.
Let’s make no mistake about our goal here. The goal of investing is to increase wealth.
So yes Rebellion Research clients will pay a trading fee for their shares vs a Robinhood account where they won’t have, but net wealth gain will be greater if you don’t sell your shares to another firm whose sole purpose of existence is to profit from trading.
Its an amazing marketing ploy, but no more than that, you are still paying with your lost gains. Your dollars and investments are being sold off to predators who just want to turn your shares around sell them again for a profit.
At the same time Rebellion Research will CHARGE 0 fees and only take a percentage of profits so that we will be free until your investments have become profitable for you.
If we don’t make you money, then we won’t make money. Fair is fair!
Alexander Fleiss, Rebellion Research CEO