91–100 of 270 posts
Earlier quoted context omitted.
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.
>After-hours is a bad indicator. I'd be happy to bet you that it's a better indicator of actual price than the close. $100 to a charity of the loser's choice that GME will open closer to $314 than $194?
What I find fascinating is these same people think nothing of the downside of Robinhood being commission-free. It's no secret that one way Robinhood makes money is by selling their order flow and choosing the exchange to fill your order that makes them the most money. Oh and that order flow goes to Capital. This enables frontrunning of retail orders.
How can you have issues with privacy and user data and be OK with being monetized by Robinhood, which literally costs you money through poorer trade prices and reporting on customer trades to a party who seeks to profit off that information?
So it's not a bad idea to transfer your shares out but the reasons for that predate GME.
Oh and if you look at the likes of Schwab as a replacement, which is also commission free. They also sell order flow.
Sometimes it's just better to pay for a service. At least then your interests are largely aligned (although with brokerage the provider has an incentive to encourage churn).
The robinhood execs that made the call to halt trading should be in jail.
Should the IB execs & TD Ameritrade execs be charged too? What about APEX clearing which enforced this rule with all of their customers?
Earlier quoted context omitted.
Right, but with Robinhood the hidden costs are actual money. They give their users inferior prices and then collect on the arbitrage.
> They give their users inferior prices and then collect on the arbitrage. That’s false. They’re legally required to get the national best bid or ask just like any other broker. Routing trade flow doesn’t change that, it just gives the recipient the ability to match or beat those prices. If there was a better price elsewhere they’re mandated by law to attain that price. If they’re not doing that the SEC would be en r…
Earlier quoted context omitted.
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.
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…
It's a great marketing tool and definitely had a hand in getting RH to where it is today. Personally, I like the instant settling.
Ideally RH would have just turned off trading to specific securities that required float. i.e. "Cash" accounts can still trade everything, but maybe they can't make that separation... simply on for all or not at all.
The robinhood execs that made the call to halt trading should be in jail.
Should the IB execs & TD Ameritrade execs be charged too? What about APEX clearing which enforced this rule with all of their customers?
Earlier quoted context omitted.
Right, but with Robinhood the hidden costs are actual money. They give their users inferior prices and then collect on the arbitrage.
> They give their users inferior prices and then collect on the arbitrage. That’s false. They’re legally required to get the national best bid or ask just like any other broker. Routing trade flow doesn’t change that, it just gives the recipient the ability to match or beat those prices. If there was a better price elsewhere they’re mandated by law to attain that price. If they’re not doing that the SEC would be en r…
"How Robinhood makes money on customer trades despite making it free" https://www-cnbc-com.cdn.ampproject.org/v/s/www.cnbc.com/amp...
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…
It sounds like FINCEN requirements require a 2-day settlement period. This period allows fractional trading to work (they pool orders and execute on day 2). Those same restrictions also appear to restrict a broker/dealer from using customer funds to cover this float. From there it's pretty easy to interpret the end results - risk rises, fees rise, and suddenly RH has to pony up massive amounts of liquidity to cover the DTC float.
Fuckery is certainly possible. This explanation still begs the question; at what point can a business decide not to cover the 'cost of doing business' and instead, create explicit downward pricing pressure.
Earlier quoted context omitted.
> They give their users inferior prices and then collect on the arbitrage. That’s false. They’re legally required to get the national best bid or ask just like any other broker. Routing trade flow doesn’t change that, it just gives the recipient the ability to match or beat those prices. If there was a better price elsewhere they’re mandated by law to attain that price. If they’re not doing that the SEC would be en r…
Literally settled with SEC a month ago for exactly that. https://www.sec.gov/news/press-release/2020-321