Forums
New posts
Search forums
What's new
New posts
New media
New media comments
Latest activity
Classifieds
Media
New media
New comments
Search media
Log in
Register
What's New?
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Navigation
Install the app
Install
More Options
Advertise with us
Contact Us
Close Menu
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Forums
The Water Cooler
General Discussion
Anybody heard of or use Robinhood?
Search titles only
By:
Reply to Thread
This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Message
<blockquote data-quote="k4ylr" data-source="post: 3183817" data-attributes="member: 40231"><p>Correct, that's a standard account. SIPC only insures cash at brokerage houses used for the sole intention of buying securities. RH and SIPC are not on the same page. You cash as it stands now, <strong>is</strong> SIPC insured because the only thing you can do with cash positions in your account is purchase securities and options; which SIPC covers. SIPC would <strong>not </strong>cover you if that account was parked as a traditional high yield savings.</p><p></p><p>On top of that SIPC only covers funds if the holding party goes insolvent and does not protect you from something like a bank run (a la 2008). FDIC insurance is much better in that it protects your funds should the institution be unable to returns your funds for any reason.</p><p></p><p>They're also funding that 3% by investing the cash-on-hand from your account. So if they gamble and lose; you're SOL. Initially they will take a loss on the spread since they'll be in to Treasuries etc...which are <3%. If they take it more risky and eat their hat; your money is gone.</p><p></p><p>You could just go park money at VMMXX for 2.34% (2.58 if the fed hikes next week) in a tax-sheltered account or if you have $10K burning a hole in your pocket go park it at PurePoint for 2.15% if you need stay liquid.</p></blockquote><p></p>
[QUOTE="k4ylr, post: 3183817, member: 40231"] Correct, that's a standard account. SIPC only insures cash at brokerage houses used for the sole intention of buying securities. RH and SIPC are not on the same page. You cash as it stands now, [B]is[/B] SIPC insured because the only thing you can do with cash positions in your account is purchase securities and options; which SIPC covers. SIPC would [B]not [/B]cover you if that account was parked as a traditional high yield savings. On top of that SIPC only covers funds if the holding party goes insolvent and does not protect you from something like a bank run (a la 2008). FDIC insurance is much better in that it protects your funds should the institution be unable to returns your funds for any reason. They're also funding that 3% by investing the cash-on-hand from your account. So if they gamble and lose; you're SOL. Initially they will take a loss on the spread since they'll be in to Treasuries etc...which are <3%. If they take it more risky and eat their hat; your money is gone. You could just go park money at VMMXX for 2.34% (2.58 if the fed hikes next week) in a tax-sheltered account or if you have $10K burning a hole in your pocket go park it at PurePoint for 2.15% if you need stay liquid. [/QUOTE]
Insert Quotes…
Verification
Post Reply
Forums
The Water Cooler
General Discussion
Anybody heard of or use Robinhood?
Search titles only
By:
Top
Bottom