When Gamestop (GME) and several other Reddit-hyped stocks soared recently, investment apps including Robinhood came under fire for temporarily halting stock purchases. This news also put the 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.
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 their Better Business Bureau rating:
Keep reading for a closer look at each investment app’s complaint history.
Ally Invest provides self-directed trading, automated investing, retirement savings accounts, and forex trading. The investment app has closed 17 complaints in the last three years and 13 complaints in the last 12 months. The company has a D- rating from the BBB.
Schwab offers a wide array of investment products, including commission-free brokerage accounts, automated investing accounts, and retirement accounts. It has closed 100 complaints in the last three years and 58 complaints in the last 12 months. Charles Schwab has an A+ rating from the BBB.
E*TRADE offers commission-free brokerage accounts, automated investing accounts, IRAs, and other wealth-building products….