191–200 of 684 posts
For those not aware of it: ton of people lost money yesterday because RH options trading system shat itself. I wouldn't trust them with my beer money https://old.reddit.com/r/wallstreetbets/comments/a5iwgh/robi...
Earlier quoted context omitted.
It looks like both FDIC and SIPC have a 250K protection, are there any other differences between the two that would matter to an average consumer?
Maybe: > SIPC insurance provides protection for your cash balance and securities holdings if Robinhood fails financially, but does not cover investment losses due to declines in the value of securities themselves . Emphasis mine. If you put $250,000 into an FDIC-protected checking account, that account holds cash and FDIC protects the full amount of that cash. If you put $250,000 in an SIPC-protected brokerage accoun…
So I won't buy any securities, just use it as a checking account, keeping the cash sitting there earning the 3% interest.
I wonder if there is a rule of Robinhood which prevents me doing this.
Anyone know of similar (short term) rates over here in Europe? Gotta be lucky to snatch up 1% for the first 6 months after signing up...
Earlier quoted context omitted.
In answer to your metacomment. The financial crisis is a strong indication that, yes financial firms can be terrible at math. Luckily, they have friends who can bail them out with taxpayer money when they fail at math.
The financial crisis was not a result of bad mathematics. Investments are made because they promise to return dividends. But there is always a chance that they might return lower than expected dividends, or none at all. This can be because the market didn't grow as expected, wages rose above expectations, a tsunami wiped out your factory or an array of other factors completely beyond your control. The best mathematic…
For folks trying to understand this, some context which may be useful: Checking accounts are loss leaders virtually everywhere, the exception being smaller community banks. Their primary revenue stream was, once upon a time, net interest income, but these days due to the extremely low interest environment and alternate sources of funding the revenue stream is more weighted towards fees (primarily NSFs, although that…
If RobinHood's MBAs are about to learn a lesson of what a fatwallet/slickdeals effect is.
If Robinhood allows users to simply park their money, they could be in for a world of hurt.
For folks trying to understand this, some context which may be useful: Checking accounts are loss leaders virtually everywhere, the exception being smaller community banks. Their primary revenue stream was, once upon a time, net interest income, but these days due to the extremely low interest environment and alternate sources of funding the revenue stream is more weighted towards fees (primarily NSFs, although that…
Cant see this lasting long
I think folks are overthinking this. The math itself doesn't matter. Have you seen recent Robinhood commercials popping up on TV? Their whole business is to encourage folks that should not be day trading to day trade. Having your money parked there just facilitates knee-jerk-reaction and follow-the-crowd trading.
Unless I'm completely ignorant of what's out there, 3% interest on a free personal checking account is absolutely bonkers. I can only imagine everyone in /r/churning jumping on this if they have an invite.
my dad used to get > 10% rate (not US, and yes, it was much higher than inflation rate). Now we think 3% is bonkers. How times have changed!
Earlier quoted context omitted.
It looks like both FDIC and SIPC have a 250K protection, are there any other differences between the two that would matter to an average consumer?
Maybe: > SIPC insurance provides protection for your cash balance and securities holdings if Robinhood fails financially, but does not cover investment losses due to declines in the value of securities themselves . Emphasis mine. If you put $250,000 into an FDIC-protected checking account, that account holds cash and FDIC protects the full amount of that cash. If you put $250,000 in an SIPC-protected brokerage accoun…
Monzo has blown up in the UK, and I know their team is growing at a crazy rate. While they aren't profitable yet, they plan to sell financial services through their marketplace (insurance, mortgages etc.) which seems to be a major source of potential income for them (source: https://monzo.com/blog/2017/11/16/monzo-marketplace/)