Better Buy: Robinhood vs. Interactive Brokers
Brokering stocks is almost as old as the markets themselves and it has a lot of traditions, but technology moves fast and it was only a matter of time before someone flipped the traditional model on its head. In a bid to get younger generations excited about investing, Robinhood Markets (NASDAQ: HOOD) delivered a platform that really speaks their language -- and its user growth is skyrocketing.
Robinhood's brokerage app is clean, sleek, and so easy to use that many of these first-time investors have skipped traditional stock buys entirely, and instead trade more complex financial instruments like options contracts. But there have been regulatory concerns about its "no commission" business model, as it earns money from a practice known as payment for order flow.
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Source Fool.com
