Hey guys! I am new to WSB and was looking for some advice....
I just switched employers and had a nice nest egg roth 401k. Current employer is with Fidelity. I could roll over that money to my current to fidelity, but I saw quite a few brokerages such as Robinhood, SoFi, MooMoo, WeBull, etc. all offer a 1-3% bonus for transferring money for them. Aside from the fact on how shitty Robinhood is in customer service, etc. etc., how do they make money from paying me the bonus (if I were to do a rollover to a self directed IRA, so there shouldn't be any sort of monthly or asset management fees)? I understand they have a payment for order flow, but this is mostly long term ETFs/bonds that I hold (this is not my YOLO portfolio). I also don't see any spreads or anything that these brokerages charge. Yes, I am aware I have to pay for robinhood gold, but if I stand to gain, for example, a couple thousand dollars, in exchange for paying them $5 a month, I still win right? What is the angle here where I am the sucker here? I feel like i'm the fly looking at a flytrap and I haven't figured out what where's the spot where I become the sucker.
I also put in like $100/day in my SoFi self directed investment account because they give me a 1% bonus, however, I don't invest in their ETF funds that charge massive fund fees, so am I coming up on top there too or am I also a sucker there?