Is Robinhood good for expats wanting to invest in ETFs for retirement?

[gtr1963]

Hey everyone,

I’m totally new to investing and honestly not very interested in it either. I just want something easy to use and to invest in ETFs for retirement. I’ve lived a few years abroad and I’m going back this year after being stuck in the US due to COVID, so my retirement options are super limited and it seems like it’s just getting worse every year with brokerages. Ideally, I’d start a Vanguard retirement account but I’m not willing to take the risks of them finding out I teach abroad. I’ve been doing some research and started an account with Interactive Brokers but their app is super complicated and I read something about having to have a minimum of $10,000 to get started. I think I may just have to call them and see if that’s really true with what I’m wanting to do. I’ll have about $4000 to rollover from a teacher pension plus maybe a couple thousand dollars saved this summer so not even close to $10,000

Anyway, I’ve read that Robinhood allows investing in ETFs and seems expat-friendly, at least for now, but the consensus seems to be that Robinhood is an inferior option for long term retirement investors. Can someone explain to me why this is? From what I can tell, investing in, let’s say the Vanguard S&P 500 ETF should be about the same no matter the brokerage I use, be it IB or RH as long as costs are low for both. Is there any reason why my return rate would be significantly less with Robinhood rather than any other broker since most ETFs average about 7% for return ?

Again, I’m not very knowledgeable at all about this stuff so bear with me. I just like the simplicity of Robinhood so willing to start an account with them as long as results will be about the same as any other brokerage.

Thanks!

 

[sam2017]

@gtr1963 Robinhood is part of the menace economy in the minds of many commentators. Look up Scott Gallaway’s take. I’d seek an alternative.

 

[gtr1963]

@sam2017 I’ll check that out. I’m just hoping interactive brokers doesn’t require $10,000 to start as it looks like they’re the only other option for expats

 

[braiser]

@gtr1963 Expat here. Save yourself the trouble and go with IB, especially for what you’re looking to do.

 

[gtr1963]

@braiser Awesome, that’s what I’m gonna do-should have just done a bit more research. I think I’ll follow Andrew Hallam’s model with Schwab ETFs since they’re so cheap

 

[braiser]

@gtr1963 Highly recommended! Changed the way I invest.

 

[chukwuemeka]

@gtr1963 Main thing with IB is they have a flat monthly fee of $10 (minus any trading fees that month), so for investing smaller amounts this will be a larger %. I believe there is a basic version without fees, but I think its only for US tax residents.

 

[jfebsd]

@gtr1963 Consider Charles Schwab. They have good service and support for expats.

https://international.schwab.com/expatriate-essentials

 

[steamchristian]

@gtr1963 Save yourself the headache, Robinhood is not good for expats. I’ll be going through my brokerage from now on.

I’m an expat and opened the account using my Magic Jack U.S. number which unfortunately no longer receives reset codes. I’ve had a terrible time with Robinhood. They have essentially locked me out of my account and have been asking me for my documents, which I’ve sent, and with each new representative handling my account I’m asked for the same information over and over through email. They do not call and have no customer service. I opened the account to test the waters. I will transfer out of Robinhood should I ever get my account reinstated. Will go back to my brokerage account. Robinhood is good until you hit a snag.