41–50 of 130 posts
Robinhood is a predatory lending scheme. The vast majority of its users should not be trading anything other than indexes.
So Robinhood is now loaning money to helpless people at exorbitant interest rates? Or did you just make up a new definition for "predatory lending"?
Earlier quoted context omitted.
So Robinhood is now loaning money to helpless people at exorbitant interest rates? Or did you just make up a new definition for "predatory lending"?
Last I checked, their margin rates were ridiculous. So that description isn't as far off as you might think.
Most (fidelity, etrade, etc.) have margin rates around ~10%. IB has ~3-4% but they're an outlier in this regard.
I'm curious if anyone with knowledge can speak to how Robinhood sells data to high frequency traders? This seems to result in a large percentage of their revenue which of course makes sense due to not having commission revenue. I've also heard some people argue if you're investing a decent amount, you're better off with commissions over market orders on Robinhood. The arguments were the above & that orders can take a…
The other commenters answered your first question about the sale of flow to HFT firms. Regarding your second question, I wouldn't recommend trading a lot of size on Robinhood, or using market order in general, but brokerages that charge commissions do not necessarily offer better execution than Robinhood, many of them still route your flow to an HFT firm or have less than stellar order routing systems.
I've been using Robinhood for the past year, and I hope they add basic features such as: - The ability to short a stock, which I still can't believe isn't available. - Price Alerts Everything else is gravy, IMO, especially if they keep the same basic, sleek interface, which I actually like.
You can buy put options on Robinhood already.
I'm curious if anyone with knowledge can speak to how Robinhood sells data to high frequency traders? This seems to result in a large percentage of their revenue which of course makes sense due to not having commission revenue. I've also heard some people argue if you're investing a decent amount, you're better off with commissions over market orders on Robinhood. The arguments were the above & that orders can take a…
I've been using Robinhood for the past year, and I hope they add basic features such as: - The ability to short a stock, which I still can't believe isn't available. - Price Alerts Everything else is gravy, IMO, especially if they keep the same basic, sleek interface, which I actually like.
Shorting a stock is not a basic feature, it's an advanced feature for power users. You can buy put options on Robinhood already.
Earlier quoted context omitted.
I have a couple of shares on the app for a company. Just for anecdotal data. It’s fun to see. I would never put large amounts of my money in there.
Good for you. (Not sarcasm —- this is what individual stock investing should be for retail. For fun, to have a tiny bit of skin in the game.) But many people let it get out of control, either because they lack this self discpline, or because they randomly see positive results and then think they’re good traders.
Earlier quoted context omitted.
Can't you say the same thing about everyone using any other retail brokerage?
No. Upstanding retail brokerages (such as Interactive Brokers) don’t make interest on their customers’ balances.