I started trading on RH in 2019. They make investing simple and approachable for someone who like me who knew the basics and just wanted to play around a bit with some spare cash.
But after a couple years when I want to start taking it more seriously, their platform has failed to grow and improve. In the three years I've used them, I can't think of a single new feature they added that I use. Meanwhile, there are plenty of things I'd like. For example, it's beyond ridiculous that price graphs don't have their axes labeled. When selling stock, it's always FIFO, so I can't choose which lots to sell to optimize tax liabilities.
The problem is that I have a hard time leaving because their margin rates (~3%) are so damn good compared to the major players (8% or higher).
IB has very conservative risk management wrt margin and there is no margin call. If the market moves against you, they will liquidate you rapidly. Something to keep in mind when considering your LTV. Their margin rates are good, but there’s a reason they’re good.
Good margin rates will be difficult to find in a rising interest rate environment. You can get lower rates from traditional brokers if you have a substantial net worth btw ($1MM+ AUM).
I started trading on RH in 2019. They make investing simple and approachable for someone who like me who knew the basics and just wanted to play around a bit with some spare cash.
But after a couple years when I want to start taking it more seriously, their platform has failed to grow and improve. In the three years I've used them, I can't think of a single new feature they added that I use. Meanwhile, there are plenty of things I'd like. For example, it's beyond ridiculous that price graphs don't have their axes labeled. When selling stock, it's always FIFO, so I can't choose which lots to sell to optimize tax liabilities.
The problem is that I have a hard time leaving because their margin rates (~3%) are so damn good compared to the major players (8% or higher).