51–60 of 175 posts
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At $10/mo (=$120 year), assuming a 1.5% interest rate, you're actually saving money on interest expenses if you invest more than $10k on margin for > 1 year. Doesn't sounds that bad to me?
It's $10/mo to borrow up to $2k. The cost to borrow more goes up.
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> 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? I've used IB (and don't use robinhood). The IB GUI is a fucking trainwreck. If design had ethical obligations the way bridge engineering does, IB's designers would be in prison. It is bad. And it's still one of the better trading interfaces. Ever seen a blo…
> I've used IB (and don't use robinhood). The IB GUI is a fucking trainwreck. If design had ethical obligations the way bridge engineering does, IB's designers would be in prison. It is bad. And it's still one of the better trading interfaces. Ever seen a bloomberg terminal? I agree that the UI is terrible but keep in mind that IB is very very specifically targeted at active stock traders and institutions, not regula…
I understand what you're saying here, and you're right. Large parts of IB's complexity come from accomodating the crazy stuff you have to do when you want to unload millions of shares without tipping off algos.
However..
The implication that "active stock traders" and "regular people" are mutually exclusive is one of the things holding finance software back.
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> I've used IB (and don't use robinhood). The IB GUI is a fucking trainwreck. If design had ethical obligations the way bridge engineering does, IB's designers would be in prison. It is bad. And it's still one of the better trading interfaces. Ever seen a bloomberg terminal? I agree that the UI is terrible but keep in mind that IB is very very specifically targeted at active stock traders and institutions, not regula…
> I agree that the UI is terrible but keep in mind that IB is very very specifically targeted at active stock traders and institutions, not regular people I understand what you're saying here, and you're right. Large parts of IB's complexity come from accomodating the crazy stuff you have to do when you want to unload millions of shares without tipping off algos. However.. The implication that "active stock traders"…
Earlier quoted context omitted.
> Interactive brokers is what, a few bucks a trade anyway? IB Commission is $0.005 per share, with a minimum of $1 total. The problem with IB for regular folks is a bunch of monthly fees if you don't have enough activity each month. https://www.interactivebrokers.com/en/index.php?f=1590&p=sto...
True, I forgot about the extra monthly fees -- though you can just use free, 20 minute delayed data. I also forgot that the US is so cheap -- I pay $6 each way with IB on the ASX.
The great depression was largely the result of massive numbers of everyman speculators entering the markets with reckless amounts of leverage. Robinhood vastly lowers the barrier for gambling with money you don't own. There's a reason you can't buy lottery tickets with credit cards.
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.
What are the risks? Apart from a margin call? Meaning they sell your stocks.. 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.
Robinhood's Gold tier, which is a different name for buying on margin, has potentially dire implications for the health of the economy.... The great depression was largely the result of massive numbers of everyman speculators entering the markets with reckless amounts of leverage. Robinhood vastly lowers the barrier for gambling with money you don't own. There's a reason you can't buy lottery tickets with credit card…
The Great Depression is a lot more complicated than Black Thursday... (inflationary monetary policy during most of the roaring 20's, contractionary policy during the market crash causing bank runs).
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True, I forgot about the extra monthly fees -- though you can just use free, 20 minute delayed data. I also forgot that the US is so cheap -- I pay $6 each way with IB on the ASX.
Is there a particular reason you trade the ASX? It isn't too hard to get a US brokerage account in Australia.
I have an IB account, but even setting that up to trade properly requires owning a company. I did wake up early and trade the US options market a little while ago & that was pretty great. Might play with some algorithmic stuff I have that works on the ASX, but on the US, just need a load more data.
Robinhood's Gold tier, which is a different name for buying on margin, has potentially dire implications for the health of the economy.... The great depression was largely the result of massive numbers of everyman speculators entering the markets with reckless amounts of leverage. Robinhood vastly lowers the barrier for gambling with money you don't own. There's a reason you can't buy lottery tickets with credit card…
For an easy example of how reckless/risky these alternatives are, look at FXCM/Alpari/etc after the 2015 EURCHF action.
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.
This used to be true, but these days your brokerage has to do all the hard work for you (like calculating basis). They send you a 1099-B; you copy numbers. It's almost exactly as much work if you make one trade a year on your birthday or daytrade across ~100 stocks.