How trustworthy are investment apps like Charles Schwab and Robinhood?
You can learn more about a company’s trustworthiness from its Better Business Bureau rating, but you should do additional research too.
Earlier in May, Robinhood faced user retaliation due to a cryptocurrency trading outage that occurred while dogecoin prices skyrocketed. While the investment app fully restored crypto trading, its server issues prevented many users from placing dogecoin orders.
In addition, 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…
