11–20 of 175 posts
I 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.
I 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?
Schwab can't copy $0 commissions without removing their reporting tools; I expect the companies will be comfortably able to coexist.
FYI - 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.
My first year after graduating (and dabbling in stocks/ETFs) I had a painful time filling it out manually on H&R Block. Last year, Robinhood's integration made it so easy that I was both simultaneously pissed that I'm pretty much locked into Turbo Tax and amazed that it's so nice with all its integrations (e.g. also works on Lending Club, Wealthfront, etc).
I 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.
The Robinhood iOS interface is really excellent, though they provide way less technical tools and analysis than my traditional online brokerage. However this is to be expected since Robinhood is targeting non-pro/power users.
Trade execution time and preference has actually been solid on Robinhood, though untested in a highly volatile situation where liquidity could be an issue for non-institutions and professionals.
Shameless plug (I've posted it before), but here is a blog post I wrote on leveraging capital using Robinhood Gold (margin) for those who are interested:
https://justink.svbtle.com/leveraging-capital-using-robinhoo...
I 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.
All brokerages offer margin and typically this is how they make their money, not commissions.
I 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.
Is there any risk related to avoiding the 3 day settlement?
Many amateurs using robinhood do so knowing they could loose their investment. So long as they don't loose more they'll hopefully be fine.
I think the way it's being promoted is a bit dangerous though. It seems like they're promoting to the exact market that really, really shouldn't be flipping stocks (and promoting use of margin to do so). Interactive brokers is what, a few bucks a trade anyway?
Something aimed at a similar market that I like a lot more is 'acorns'. It just rounds up any transaction you make to some number, and invests the difference in one of a few ETFs. I think it promotes a much healthier view of investing for the average young joe/jill.
I use Robinhood in tandem with my traditional online brokerage and love it. The Robinhood iOS interface is really excellent, though they provide way less technical tools and analysis than my traditional online brokerage. However this is to be expected since Robinhood is targeting non-pro/power users. Trade execution time and preference has actually been solid on Robinhood, though untested in a highly volatile situati…
1. Robinhood Gold interest is 6%. Interactive Brokers is 2.4% [1]. Why do you think there is such a massive difference, and would anyone benefit from paying it?
2. Your analysis works on ten years of data from 2007 to 2017. Did you know that is a very positive period and that shifting it by a few years would completely change the analysis? [2]
I'm not surprised you stopped using it. I am surprised you would encourage us to use it.
[1] https://www.interactivebrokers.com/en/index.php?f=interest&p...
Does Robinhood sell retail order flow on? I've read conflicting views both ways, but can't really see how they'd make any money if they didn't. I think the way it's being promoted is a bit dangerous though. It seems like they're promoting to the exact market that really, really shouldn't be flipping stocks (and promoting use of margin to do so). Interactive brokers is what, a few bucks a trade anyway? Something aimed…