Robinhood trading site seizes up, customers miss stock rally

#1

Post by rainhacker » Tue, Mar 03, 2020, 6:51 PM UTC

Robinhood trading site seizes up, customers miss stock rally
bloomberg.com

Re: Robinhood trading site seizes up, customers miss stock rally

#2

Post by scohesc » Tue, Mar 03, 2020, 7:29 PM UTC

I'm pretty ignorant of investing services/brokers...

Is this a case of people putting all their eggs in one basket? Does Robinhood have a "guaranteed" 99.9xxx% uptime guarantee?

Sucks for a lot of people who evidently are putting a lot of money in the market and couldn't do anything due to a technical issue.

Re: Robinhood trading site seizes up, customers miss stock rally

#3

Post by nostromo » Tue, Mar 03, 2020, 7:32 PM UTC

I get the feeling that the less RH is available, the less money their customers will lose.

Re: Robinhood trading site seizes up, customers miss stock rally

#4

Post by thedudeabides5 » Tue, Mar 03, 2020, 7:32 PM UTC

scohesc wrote: post #2

I'm pretty ignorant of investing services/brokers... Is this a case of people putting all their eggs in one basket? Does Robinhood have a "guaranteed" 99.9xxx% uptime guarantee? Sucks for a lot of people who evidently are putting a lot of money in the market and couldn't do anything due to a technical issue.

This is what $0 commissions gets you...

Re: Robinhood trading site seizes up, customers miss stock rally

#5

Post by TheGrassyKnoll » Tue, Mar 03, 2020, 7:32 PM UTC

Power Etrade was pretty sluggish today for awhile as well.

Re: Robinhood trading site seizes up, customers miss stock rally

#6

Post by Mikeb85 » Tue, Mar 03, 2020, 7:32 PM UTC

And this is why larger brokerages are worthwhile. Not to mention, if my bank's app freezes, I can call someone to place a trade if needed.

Re: Robinhood trading site seizes up, customers miss stock rally

#7

Post by henryw » Tue, Mar 03, 2020, 7:32 PM UTC

Seasoned traders probably have a second account to hedge.

Re: Robinhood trading site seizes up, customers miss stock rally

#8

Post by lvh » Tue, Mar 03, 2020, 7:33 PM UTC

scohesc wrote: post #2

I'm pretty ignorant of investing services/brokers... Is this a case of people putting all their eggs in one basket? Does Robinhood have a "guaranteed" 99.9xxx% uptime guarantee? Sucks for a lot of people who evidently are putting a lot of money in the market and couldn't do anything due to a technical issue.

A common adage is that the best service a brokerage can provide is to cut the phone lines during a crash :)

Regardless: Robinhood is aimed at individual consumers, not sophisticated investors. It's not uncommon for prosumers to have several brokerages, but of course you're limited in the size of the moves you can make (probably not a bad thing for the median Robinhood user).

If you cared this much, you probably had IBKR.

Re: Robinhood trading site seizes up, customers miss stock rally

#9

Post by _verandaguy » Tue, Mar 03, 2020, 7:34 PM UTC

I'm not a Robinhood user -- do they have guaranteed stop losses? This is something that could appease lots of users (assuming it's used correctly) even in this kind of situation (since _guaranteed_ stop losses exist pretty much for exactly this eventuality).

Re: Robinhood trading site seizes up, customers miss stock rally

#10

Post by toomuchtodo » Tue, Mar 03, 2020, 7:34 PM UTC

thedudeabides5 wrote: post #4

scohesc wrote: post #2

I'm pretty ignorant of investing services/brokers... Is this a case of people putting all their eggs in one basket? Does Robinhood have a "guaranteed" 99.9xxx% uptime guarantee? Sucks for a lot of people who evidently are putting a lot of money in the market and couldn't do anything due to a technical issue.

This is what $0 commissions gets you...

Most major discount brokerages are also at $0 commissions. They make their money off of net interest, asset management fees, margin, security lending arrangements, and order flow.