131–140 of 318 posts
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I didn't downvote but wanted to suggest just using "they" when you don't know.
Correcting people when they use wrong pronouns is distracting but I get it, but can we at least not correct people for not using the right variety of neutral pronouns?
I believe this is to punish RH for offering zero commissions. Especially on options. I seriously think what RH offers, for anyone who’s traded options on the retail side, is a game changer.
The article states that RH cost its consumers more in bad trade execution than it saved them in commissions. How are you sure this didn't happen to you?
Small fines will continue to encourage this behavior. Robinhood was clearly and consistently not acting in the best interests of its clients and misrepresented pricing. Now it’s worth billions.
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Schwab also receives payment for order flow (AKA selling your orders): https://www.schwab.com/legal/order-routing-1 . In fact, every retail brokerage I'm aware of receives payment for order flow. Schwab also has outages although not as bad as Robinhood was this year.
Sure, but they don't promote buying crypto as an "investment". Tbh, I don't really have the patience to argue over this.
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There really need to be rules about this kind of crap. It's nasty business.
There are already lots and lots of rules.
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SEC doesn't work on behalf of consumers, it works on behalf of the federal government. Robinhood customers are still free to bring lawsuits against the company and those would be heard in courts.
Got it, so, in theory this sets the groundwork for a class action lawsuit?
It is a shame that these types of tech companies are always churning up such bad publicity... they literally cannot afford to be making these sorts of unforced errors. It just makes it that much more difficult for all the innovative and honest startups who are trying to bring about positive disruption. cutting corners and misleading your customers is not innovation.
How is a discount brokerage a tech company? They’re .. a brokerage, just like Schwab or E*Trade.
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What's perhaps a bit weirder is that the SEC is allowed to settle, instead of having to go through the judicial system.
Why is that weird? Attorneys in this are working on behalf of the US Government. If they feel like settling gets the best deal for the government, then they do that.
Settling has nothing to do with a finding of truth.
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Sometimes what's good for the 1 person isn't good for everyone. For example, if a bank starts giving out 0% interest 100 year mortgages (with some fine print that gives them some obscure revenue source to make it possible for them to make such an appealing offer) the bank should still get in trouble in my opinion if the consumer isn't informed about how they're getting such an amazing deal, because you're removing th…
I know what you want to say but that’s an awfully bad example. I would take out that loan 10 times over.
ELI5: why exactly did the clients get bad execution? Does sending order flow to trading firms in itself cause unfavorable execution? Or did the trading firms treat order flow from RH differently than from other sources? Or is it something else? And does the fact that RH was receiving large payments for order flow impact the quality of execution?
Basically, if you want to buy AAPL at $100 and as your broker, I take that info and share it with someone else, such as an HFT, they will quickly (milliseconds/nanoseconds) buy AAPL and sell you at a higher price. So, while you expected to pay $100, you ended up paying $100.10. Now that doesn't seem a lot to you but times the difference (10 cents) by volume and number of Robinhood customers placing orders and it can…