A few months ago investing apps were thrust into the spotlight due to the short squeeze on infamous stocks like GameStop: Nasdaq:(GME), AMC Theatres: Nasdaq:(AMC), and Nokia Telecommunications Nasdaq:(NOK).
The Reddit forum on WallStreetBets was on fire due to their dissatisfaction with a trading disruption on the popular fintech platform Robinhood. People were leaving the platform in droves based mostly in part on a single inability to trade which was thought to have been the cause of millions in stock losses.
‘I too avoided the platform for a few months and just stuck to the ones with which I was more familiar like Sofi, Stash, and Coinbase. However, one day I decided to give it a try and see how I would fare…
A Simple Registration Process
I was pretty happy that the sign-up process was relatively easy. I didn’t have to answer a slew of questions such as my experience with trading, annual household income— and preferred asset allocation which is required on many other apps in the financial space these days.
Not All Banks Are Allowed
Most applications and platforms are using a provider that connects to your bank for you as a middleman… And while it does require you to provide login access, it doesn’t work with all banks. Being an advocate for several bank accounts to manage my own finance— I couldn’t decide which one I wanted to use. The largest institutions are allowed but I was surprised that some of the spinoff banks weren’t.
Maximum Advance Deposits
I must say that I was initially skeptical of this feature. Here I was a new account owner being granted essentially a $1,000 advance on deposits just for signing up. The last time I was given that type of credit line is through my credit cards. But true enough, the credit was extended every single time I’d make a deposit… although I was careful to stay well below the limit.
An Incredible Return On Investment
I’m not sure if I just invested at the right time with my knowledge of options and trading or if I just got lucky on this one. I originally invested $100 dollars… Then as I noticed daily gains ranging from $25.00 to $35.00 I added an additional $40 investment. I was literally up by over 217% within a six-day time frame… And I’d only purchased 4 different cryptocurrencies…with some of them being partial buys…
Now while I enjoyed my experience with Robinhood, it’s understandable that not everyone will enjoy the same returns. The key to doing well in any type of investing is to have a strategy, know when to buy, evaluate your risks and only invest what you can afford to lose.