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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

#131

Post by liquidify »

Lazare wrote: post #127
liquidify wrote: post #104

How does one of these transfers of stock work from a technical perspective? Is it all just paper transfers that are physically sent in the mail, or is there some kind of digital backing that can be transferred like crypto?

Stocks have been digitally backed since the late 60s. To quote the inimitable Matt Levine: > Nobody owns stock. What you own is an entitlement to stock held for you by your broker. But your broker doesn't own the stock either. What your broker owns is an entitlement to stock held for it by Cede & Co., which is a nominee of the Depository Trust Company, which is a company that is in the business of owning everyone's s…

Really cool. Thanks for the response.

Re: Transfer Stocks Out of Your Robinhood Account

#132

Post by bonestamp2 »

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'm not an apologist, but the fact is that Robinhood has gotten beaten up by the SEC over the years for not looking out for their users enough (rightfully so). But that also means I can see why they'd tread very carefully around protecting their users from losing their savings on GME. It's hard to have it both ways.

Re: Transfer Stocks Out of Your Robinhood Account

#133

Post by teeray »

kasey_junk wrote: post #54
rubyist5eva wrote: post #20

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?

Yes. The calculus in their heads that the SEC fines for doing this would be less than their losses from allowing trading to continue needs to die. The penalty for violating the law must always be greater than the consequences of following it.

Re: Transfer Stocks Out of Your Robinhood Account

#134

Post by azmenak »

kasey_junk wrote: post #54
rubyist5eva wrote: post #20

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?

As other have pointed out, this wasn’t applied as a blanket ban.

I was able to trade GME options in IBKR today without any restrictions.

Re: Transfer Stocks Out of Your Robinhood Account

#135

Post by adrr »

nightski wrote: post #117
newacct583 wrote: post #88

Earlier quoted context omitted.

> Hopefully some (many) people will take it to heart that Robinhood users are suckers. While this is all true (and realistically Robinhood has killed their brand and probably won't survive), those same users were also suckers for falling for this ridiculous GME pump. What Robinhood did was absolutely in self-interest, but it was trying to cover up a mess that fundamentally wasn't of its own devising. They were either…

I've been watching the market for years. Pump & dumps happen. They are usually over in a few hours max. Sometimes much quicker. This has been going on for days (the majority of the week) and shows no signs of stopping. In fact tomorrow could be the most volatile day yet. I'm not sure what is making you think all of the RH users were suckers, many of them have made quite a bit off of this. I don't personally use RH cu…

Stock market is a 0 sum game. Someone is going to pay in the end. It’s not the hedge fund, they already covered to the tune of $2 billion and someone has pocketed that money and it’s not retail investors.

Re: Transfer Stocks Out of Your Robinhood Account

#136

Post by easton »

dragontamer wrote: post #107
kahrl wrote: post #75

Earlier quoted context omitted.

Robinhood lost trust when they initially lied to their investors about why buying was halted. (Saying they cared about the little guy and these stocks were too volatile for them to handle) 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 pro…

> Citadel bailed out Melvin who illegally naked shorted 150% of the float Yeah. Misinformation. #1. Melvin seems to have held a significant number of puts as far as I can tell. #2. Even if they were stupid enough to short 150% of the available shares, I don't believe there's anything illegal about that.

At Melvin scale it most likely is illegal, if they didn’t have a reasonable chance at getting the shares they needed (which at ~140% of float, they don’t).

https://www.sec.gov/news/press/2009/2009-172.htm

Re: Transfer Stocks Out of Your Robinhood Account

#137

Post by whoisjuan »

ingend88 wrote: post #6

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

Could be way worse given the amount of existing brokerage alternatives and the fact that nowadays they are all basically the same.

I put a request to transfer today for just a single reason and it has nothing to do with me me being mad at them for halting trades. I simply don’t trust Robinhood anymore. I feel they are too leveraged and too exposed to the cross-winds of retail investors. Flashmob trading is officially a thing and Robinhood will be the most exposed brokerage when it comes to volatility and lack of liquidity.

After what happened today it’s clear they can’t be trusted with my securities and even less with my liquid cash.

I don’t want to have any kind of money in Robinhood because I have the weird feeling it could go down. That’s how much I distrust them at this point. If they really halted transactions because of lack of liquidity, imagine what could happen with them if we experience a bubble burst or any other major economic event that impacts public markets.

I’m certain I’m not the only one feeling like this. If I could I would sell and re-buy at another brokerage but I want to avoid a tax event.

Re: Transfer Stocks Out of Your Robinhood Account

#138

Post by llboston »

PragmaticPulp wrote: post #122
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…

One of Robinhood’s innovations was that they gave everyone a margin account, but hid the details. When you transfer money in, Robinhood doesn’t actually get that money until a couple days later. They allow you to buy stock immediately, but that happens (transparently) on margin. Robinhood is loaning you the money to make it happen. Likewise, when you buy or sell a stock, the trade doesn’t settle for t+2 days. Robinho…

> When you transfer money in, Robinhood doesn’t actually get that money until a couple days later. They allow you to buy stock immediately, but that happens (transparently) on margin. Robinhood is loaning you the money to make it happen.

Then they can reduce the purchasing power for certain stocks to just the money already transferred.

Re: Transfer Stocks Out of Your Robinhood Account

#139

Post by 8note »

cletus wrote: post #92

There are a decent number of people who eschew free products support by advertising. Such providers are daemonized for "selling your data" (or even "stealing your data"). You'll hear some quips as "if the product costs nothing, you are the product". 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 sel…

I can set limit orders, so I don't particularly care about someone being able front run me.

Sure, I might be losing some amount over time, but I'm still executing orders at the rate that I want

Re: Transfer Stocks Out of Your Robinhood Account

#140

Post by [deleted] »

newacct583 wrote: post #88
yakz wrote: post #83

Earlier quoted context omitted.

Hopefully some (many) people will take it to heart that Robinhood users are suckers. This wasn't "just" privacy violations or psychological manipulation with ads, this was Robinhood deciding what to do with YOUR money to cover their ass. Whether they lent it to you or not doesn't matter, because if the bad trade were going the other way, then you, the sucker, would absolutely be on the hook. Whether it's fraud or fla…

> Hopefully some (many) people will take it to heart that Robinhood users are suckers. While this is all true (and realistically Robinhood has killed their brand and probably won't survive), those same users were also suckers for falling for this ridiculous GME pump. What Robinhood did was absolutely in self-interest, but it was trying to cover up a mess that fundamentally wasn't of its own devising. They were either…

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