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Transfer Stocks Out of Your Robinhood Account

robinhood.com

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Re: Transfer Stocks Out of Your Robinhood Account

#41

Post by kapuasuite »

ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

> Because ultimately, all the finance whiz bang talk doesn’t change common sense that only allowing trades in one direction is unfair

Trump’s executive order in November is forcing Americans to divest from a bunch of Chinese companies - liquidating orders only.

Re: Transfer Stocks Out of Your Robinhood Account

#42

Post by nrmitchi »

toast0 wrote: post #25
ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

My understanding from other threads is that RH accounts default to being a margin account, and that most people don't opt-out of margin. I would never apologize for RH, I thank them for pushing mainstream retail commissions to $0, but I don't do business with them (and never have) because they don't seem to have focused on the important parts of being a brokerage.

> they don't seem to have focused on the important parts of being a brokerage.

That's because they don't. The entire application and order flow seem designed to limit the amount of information given to the actual user, in order to make them more confident in the decision. More confident users trade more stock.

I guess you could argue that "a brokerage makes more money the more stocks are traded, so they are doing the best of the brokerages", but would personally argue that a brokerage should have a responsibility to at least partially work in the best interest of their clients.

Out of curiousity I went through their option buying flow the other day (100% expecting to lose that money); it felt more like buying a lottery ticket than a financial investment.

I feel gross agreeing with Robinhood here, but it doesn't really sound like they were in a position to not take the action they did (this time).

Re: Transfer Stocks Out of Your Robinhood Account

#43

Post by nortlov »

imustbeevil wrote: post #31
toast0 wrote: post #25

Earlier quoted context omitted.

My understanding from other threads is that RH accounts default to being a margin account, and that most people don't opt-out of margin. I would never apologize for RH, I thank them for pushing mainstream retail commissions to $0, but I don't do business with them (and never have) because they don't seem to have focused on the important parts of being a brokerage.

> Access to margin is not automatic to everyone, and requires you to upgrade to Gold. https://robinhood.com/us/en/support/articles/margin-overview...

A non-margin account can “Instant deposit” and begin using $1,000 immediately prior to the transaction clearing. Now, whether this is considered ‘traditional’ margin to the masses or Robinhood for the purposes of this freeze, I’m not sure.

Re: Transfer Stocks Out of Your Robinhood Account

#45

Post by aaaxyz »

bigyikes wrote: post #7
optimalsolver wrote: post #3

The fact that so many of these bandwagoners didn't understand what a margin call is demonstrates that Robinhood was right to save them from themselves.

GME is sitting pretty at $312 after hours. What did they get saved from?

After-hours is a bad indicator.

It closed today at 194. Anyone who bought shares since Wednesday morning's peak of 300 is in the red.

Re: Transfer Stocks Out of Your Robinhood Account

#47

Post by stainforth »

snypher wrote: post #23
ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

I think with Robinhood Instant you can by stock before the bank transfer has cleared, so they need cash on hand to fill the orders. The rising demand x rising order amount means they probably blew out their liquidity allowance. With new accounts starting with Instant capability, they are all on margin until the transfer clears.

> their liquidity allowance.

But only on specific stocks they selected? They still had liquidity for other stocks?

Re: Transfer Stocks Out of Your Robinhood Account

#48

Post by markdown »

toast0 wrote: post #25
ditonal wrote: post #13

The RH apologists are going on long winded explanations about clearing houses (and to some extent there’s elements of “it’s too complex for your little brain”). But even to the extent it’s true, if I put in 5k from my checkings into RH and buy stock, why does Rh need all this liquidity to get orders filled? I understand turning margin accounts off, but that’s it . Past that, at best robinhoods business model is highl…

My understanding from other threads is that RH accounts default to being a margin account, and that most people don't opt-out of margin. I would never apologize for RH, I thank them for pushing mainstream retail commissions to $0, but I don't do business with them (and never have) because they don't seem to have focused on the important parts of being a brokerage.

> I thank them for pushing mainstream retail commissions to $0

This isn't a positive. Had they charged fees, they wouldn't today be doing the bidding of of their real clients.

Re: Transfer Stocks Out of Your Robinhood Account

#49

Post by nexthash »

ingend88 wrote: post #6

Will this be like #deleteUber where enough damage can be made by #deleteRobinhood ?

I believe the more apt comparison is to the recent changes made to WhatsApp's privacy policy to integrate it closer to Facebook. The difficulty of moving to a different platform is relatively lower than getting rid of a social media network like Facebook (lower network effect, overlapping functionality with other offerings), which means a large hiccup like this can easily trigger mass migration to other brokerages.
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