71–80 of 270 posts
The robinhood execs that made the call to halt trading should be in jail.
Lol, it’s like saying the manager of the restaurant that took my favorite entree off the menu should be arrested. This is the main problem with Robinhood, it’s designed to attract a core audience of clueless children.
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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…
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.
> 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…
We can discuss the trading halts separately.
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Lol, it’s like saying the manager of the restaurant that took my favorite entree off the menu should be arrested. This is the main problem with Robinhood, it’s designed to attract a core audience of clueless children.
Except it's nothing like that because it directly caused their users to lose hundreds of thousands of dollars of unrealized gains.
You are lucky the NYSE hasn’t shut down BME trading for all of February. Yet.
there is a lot of misinformation out there about what happened today. its starting to to look like this all happened due to default concerns and the resulting changes in necessary collateral. I have no skin in this game (neither GME or Robinhood), but lets try to stay informed and not grab pitchforks based on non proven allegations.
Then they came out and said it was a liquidity issue. If it was simply a liquidity issue, why weren't just margin orders halted? Why did they stop people with cash in their hand from buying stock?
None of Robinhood's statements provide a full explanation. People are within their right to be absolutely livid at this moment and demand answers.
Some facts:
1) There is a conflict of interest when Robinhood routes the majority of trades through a high frequency trading firm that has an interest in short positions. Citadel bailed out Melvin who [probably] illegally naked shorted 150% of the float.
2) The CNBC interview explaining the liquidity issues that aired today was filmed yesterday.
3) Mainstream media has been feeding lies to the public. Who is buying the stock? (It's foreign entities who hate America and capitalism!) Will the SEC come after the little guy?! Can they sue these investors?! (Absolutely not. Why the hell are you trying to put fear and doubt in the heads of these people?)
These facts along with Robinhood's BS explanations lead people to believe that the reason that this happened is simply that the WRONG PEOPLE LOST MONEY.
Just open an account on some real broker website like DEGIRO that does not engage in to pay for order flow like RobinHood and Trade Republic do. I can still buy GME if I want to there, although I am not doing it.
Note DEGIRO is a Dutch broker that requires strict residency requirements. They are covered by a regulatory regime that outlaws payment for order flow. You’ll pay a fee for trading through them even if you are engaging in activity that would get you a rebate on the exchange so they are taking their cut in other ways.
Also, exchange rebates are usually very small amounts of the total trade, so for people who the fixed fees matter the most (people with less money in their account) the rebates would be insignificant.
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> 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…
They could add lots of disclaimers and dozens of I agree and I know what I am doing checkboxes but not allowing to buy certain stocks but only to sell them is like a partially blocked intersection with the only open road leading to a ravine. Not cool RH, not cool. It's really an insult to the legend of Robin Hood, he was robbing the rich and giving to the poor not the other way around.
Robinhood may be able to control what happens on their own platform (typically heavily based on regulation), but that doesn't mean they can stop buy/sell activity on the whole market.
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Lol, it’s like saying the manager of the restaurant that took my favorite entree off the menu should be arrested. This is the main problem with Robinhood, it’s designed to attract a core audience of clueless children.
Except it's not because the restaurant doesn't have to abide by federal trading law and SEC regulations?
Actually I would have loved to see Robinhood do nothing do when GME inevitably crashes back down below $10 it’s forced into bankruptcy holding the bag on so many non paying accounts.
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I highly doubt that any brokerage will cover a $75 transfer fee on a <$1k account.
TD has a guarantee where they will waive any fee if you say you’re not satisfied including the transfer out fee.