Robinhood stock trading app valued at $1.3B with big raise from DST
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Re: Robinhood stock trading app valued at $1.3B with big raise from DST
#2That's cool and all, but I trade so rarely that $10 a month would cost me more than my current brokerage (TD Ameritrade). If you re-balance anually, and only hold a handful of different stocks, it's easy to keep trading costs below $120/year.
But, I guess one of the reasons I never tinkered with algorithmic trading was the cost per-transaction. So, maybe it's a good thing this didn't exist when I first read about algorithmic trading, as I might have actually tried it.
Re: Robinhood stock trading app valued at $1.3B with big raise from DST
#3I laughed at the article's url slug playing on the company's name - now-whos-the-rich.
I haven't used Robinhood, but welcome new fintech companies who lower the barrier of entry toward financial health for the average consumer. Good for them, and I hope they use this money well.
Re: Robinhood stock trading app valued at $1.3B with big raise from DST
#4I don't know if I might be a little less smarter than average but could someone please enlighten. e on why RobinHood is valued at such an amount? What special purpose do they solve that C.S wouldn't copy as a feature or own in the nearest future?
Re: Robinhood stock trading app valued at $1.3B with big raise from DST
#5That's cool and all, but I trade so rarely that $10 a month would cost me more than my current brokerage (TD Ameritrade). If you re-balance anually, and only hold a handful of different stocks, it's easy to keep trading costs below $120/year. But, I guess one of the reasons I never tinkered with algorithmic trading was the cost per-transaction. So, maybe it's a good thing this didn't exist when I first read about alg…
The $10 per month is only if you need some additional ability beyond basic trading. If you can live with three day clearing time (i.e. trading in a cash account) then the trades are free.
Re: Robinhood stock trading app valued at $1.3B with big raise from DST
#6I think what Robinhood is doing with Gold accounts is pretty shady. I'm guessing that the vast majority of people who trade on margin don't fully comprehend the risks in doing so.
Re: Robinhood stock trading app valued at $1.3B with big raise from DST
#7That's cool and all, but I trade so rarely that $10 a month would cost me more than my current brokerage (TD Ameritrade). If you re-balance anually, and only hold a handful of different stocks, it's easy to keep trading costs below $120/year. But, I guess one of the reasons I never tinkered with algorithmic trading was the cost per-transaction. So, maybe it's a good thing this didn't exist when I first read about alg…
It's free actually. The $10 / month subscription is for their Gold service which gives limited credit and removes the 3 day wait for transactions to settle.
Re: Robinhood stock trading app valued at $1.3B with big raise from DST
#8FYI - you will not have a good time buying and selling stocks onesie-twosie when it comes time to filling out your tax return.
If you want to avoid commissions, Schwab & Fidelity have commission free ETF's - just buy and hold.
Re: Robinhood stock trading app valued at $1.3B with big raise from DST
#9I think what Robinhood is doing with Gold accounts is pretty shady. I'm guessing that the vast majority of people who trade on margin don't fully comprehend the risks in doing so.
I agree. Especially when most of their user base is probably millennials who are < 2 years into trading. A bit scary.
Re: Robinhood stock trading app valued at $1.3B with big raise from DST
#10I don't know if I might be a little less smarter than average but could someone please enlighten. e on why RobinHood is valued at such an amount? What special purpose do they solve that C.S wouldn't copy as a feature or own in the nearest future?
1) Robinhood Gold is margin lending i.e. lending money to customers who want leverage. The monthly fee is effectively the loan's interest rate, rebranded in less shady terms.
2) They have very valuable order flow, which they sell. Almost all of Robinhood's customers are unsophisticated investors. Trading firms pay a lot of money for unsophisticated trading flow as there's room to "skim off the top".
3) Add in the typical "successful VC-backed startup" premium.