Starting my shop
If I want to cold call and find investors, is it legal to use Robinhood to start a shop? I mean it's free right so if I keep track of cost basis and number of shares each client owns and then charge them less then the typical 1% fee because Robinhood is free. Let's says I charge (random percentage) .3% annual fee for my troubles to research stocks for my customer. Robinhood allows trading to be free so I drop the $7 trading cost everytime and taking a lower percentage is my choice because it's based off of what I feel my self reseach value is worth then would this be legal? Would I need a series 7? I understand Robinhood only trades american stocks so a down side would be lack of variety, but technically could I make this happen or is this a horrible idea?
No one is going to take you seriously, using Robinhood to trade... This is one of those things you ask your relatives and friends, not investors...
Interactive Brokers is the bare minimum in terms of platform for managed accounts. It's still relatively cheap and the infrastructure isn't bad considering. It has a professional setup so you wouldn't have to compromise from a legal and admin perspective.
Another plus is that it has global stocks and futures so you're not limited.
Just go with IB, no one will take you serious when you'll mention "Robinhood". It's like trying to offer private jet flights and fly your customers with a CESSNA SKYHAWK.
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