They shouldn't be using Robinhood to buy individual stocks, buy cryptocurrency, or do options trading.
What if they do it for fun?
Personally, I would have fun having a few thousands there (but I'm Canadian), it's not worse than having a few thousands over a gaming computer, or gambling at the casino.
If you consider Robinhood as the way to finance your retirement, well you are doing something pretty bad, but that was always true for any stock trading.
> Investing, Checking & Savings. All for Free.
> Robinhood gives you the tools you need to grow your savings, invest in your future, and do more with your money.
Does that sound like "this is not an appropriate way to finance your retirement" to you?
All brokerage accounts advertise themselves as investments, even if the reality is that idiots open them and lose all of their money trading options.
I mean, if you really have this expectation of marketing copy, I don't blame you, that's a totally legitimate position to hold. It's just not one I would expect many people to share.
Robinhood presents a nice way of making it easy to get into the stock market with a pretty interface and without going through a cumbersome broker and paying fees for things you don't understand. Do seek professional help if you are looking for 401k and retirement guidance.
If anything, RH is sophisticated gambling.
But people like me should recognize that the people using Robinhood to trade individual stocks, buy cryptocurrency, trade options or trade on margin are effectively subsidizing those who do. Along with the participants of Robinhood's funding rounds, I guess.
The only real reason to have money in RH, IMO, is if you're gambling with <$1000 on penny stocks and options-cum-lottery tickets.
