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Robinhood stock trading app confirms $110M raise at $1.3B valuation

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21–30 of 394 posts

Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation

#21
I use Robinhood daily and love it. Low level traders could care less if HFT are making a penny off them. Also you can put limit orders.......

No way I could trade the way I do and still make money if I was paying 7$ or more per trade. Crazy the industry can charge that much.

Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation

#22

“But ‘how are you going to make money long-term?’ has been a question mark” Bhatt says. Gold has answered that question.” A Gold subscription lets users borrow up to double the money in their account to trade on margin with leverage Wow, so that's effectively opening up new easy to get credit vehicles for unsophisticated investors. How could that go wrong? Even if you are a professional trader you'll take a bath on m…

Might be questionable for investors (although trading on margin is extremely common) but gambling seems to make a ton of money for casinos, betting parlors and lottery boards, many of which have been around for "long term." Sounds more like you have moral/personal objection.

Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation

#23

“But ‘how are you going to make money long-term?’ has been a question mark” Bhatt says. Gold has answered that question.” A Gold subscription lets users borrow up to double the money in their account to trade on margin with leverage Wow, so that's effectively opening up new easy to get credit vehicles for unsophisticated investors. How could that go wrong? Even if you are a professional trader you'll take a bath on m…

Margin trading is a pretty standard feature across all brokerages. Dangerous if used ignorantly, but greatly increases you returns if used effectively.

Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation

#24
post #10

My understanding is that if you trade through a platform like this, that's monetizing through order flow, you're getting screwed by HFTs. I.e. AFAIK Robinhood doesn't need to be selling the data to HFTs (which they don't do), for you to get screwed by them. Anyone here in the space who can quantify the "hidden" cost you incur because of more sophisticated traders trading against you? It feels like working with a brok…

HFTs don't work that way.

Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation

#25
post #10

My understanding is that if you trade through a platform like this, that's monetizing through order flow, you're getting screwed by HFTs. I.e. AFAIK Robinhood doesn't need to be selling the data to HFTs (which they don't do), for you to get screwed by them. Anyone here in the space who can quantify the "hidden" cost you incur because of more sophisticated traders trading against you? It feels like working with a brok…

HFTs don't work that way.

Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation

#26

“But ‘how are you going to make money long-term?’ has been a question mark” Bhatt says. Gold has answered that question.” A Gold subscription lets users borrow up to double the money in their account to trade on margin with leverage Wow, so that's effectively opening up new easy to get credit vehicles for unsophisticated investors. How could that go wrong? Even if you are a professional trader you'll take a bath on m…

True, but all major retail brokers allow investors to trade on margin (and charge you interest on it), so this is nothing new.

Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation

#27

“But ‘how are you going to make money long-term?’ has been a question mark” Bhatt says. Gold has answered that question.” A Gold subscription lets users borrow up to double the money in their account to trade on margin with leverage Wow, so that's effectively opening up new easy to get credit vehicles for unsophisticated investors. How could that go wrong? Even if you are a professional trader you'll take a bath on m…

"Three things ruin people: drugs, liquor, and leverage - Charlie Munger" - ???

Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation

#28

“But ‘how are you going to make money long-term?’ has been a question mark” Bhatt says. Gold has answered that question.” A Gold subscription lets users borrow up to double the money in their account to trade on margin with leverage Wow, so that's effectively opening up new easy to get credit vehicles for unsophisticated investors. How could that go wrong? Even if you are a professional trader you'll take a bath on m…

Depends what you want to do, I'm about 98% in plain old, boring index-tracking ETFs.

But sometimes I want to take a bit of money to make some stupid bet. Yes, to gamble. And for that purpose, often having the leverage is a good thing.

The way I see it, the bets are much more entertaining than those at casinos and with better odds. Maybe it's just me, but I find casinos incredibly boring, but gambling on the market can be quite interesting.

Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation

#29

“But ‘how are you going to make money long-term?’ has been a question mark” Bhatt says. Gold has answered that question.” A Gold subscription lets users borrow up to double the money in their account to trade on margin with leverage Wow, so that's effectively opening up new easy to get credit vehicles for unsophisticated investors. How could that go wrong? Even if you are a professional trader you'll take a bath on m…

Margin trading is a pretty standard feature across all brokerages. Dangerous if used ignorantly, but greatly increases you returns if used effectively.

And regulated - you have to be approved for margin trading by the brokerage.

Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation

#30
post #2

Nice, now hopefully they can deliver on a public API, short selling, and a desktop app.

I would be pretty surprised if they introduced short selling. There's no question that a good chunk of Robinhood's user base are novice investors. Those that do not understand short selling may land themselves into a lot of a hot water. There may be measures RH could take to prevent novice users from dangerous short selling plays. I'd be curious to see how they introduce it.
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