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Robinhood is again facing user retaliation due to a cryptocurrency trading outage that occurred while Dogecoin prices skyrocketed. While the investment app has now fully restored crypto trading, its server issues prevented many users from placing Dogecoin orders.
When Gamestop (GME) and several other Reddit-hyped stocks soared earlier in 2021, investment apps including Robinhood came under fire for temporarily halting stock purchases. This news also put the business practices of popular investing apps, including the compensation model called payment for order flow, under the magnifying glass.
If you’re looking for signs that you can trust an investment app with your money, research is your friend. You can generally find information about an app’s customer complaint history, advertising issues, and other business information by viewing its Better Business Bureau profile.
Below, you can see how investing apps, brokerages, and automated investment advisors stack up when it comes to their Better Business Bureau rating. But BBB ratings aren’t the only thing you should take into consideration when searching for an investment app; it’s also wise to do your own research and look for any notable news about the company you’re looking to park your money with. And when in doubt, it could make sense to consult your financial advisor or financial planner.
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How trustworthy are investing apps and brokerages?
Investing apps let you set up and manage accounts on your own. They typically offer self-directed trading accounts, retirement accounts, and custodial accounts.
In some instances, online brokerages also provide an automated investing account option. But not all automated advisors offer brokerage services. To draw a clearer distinction, we separated brokerages and automated or online advisors into two separate tables.
Below, you can see how investing apps and brokerages stack up when it comes to …read more
Source:: Business Insider