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Transfer Stocks Out of Your Robinhood Account

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Re: Transfer Stocks Out of Your Robinhood Account

#241

Post by sprite »

whoisjuan wrote: post #137
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…

I also put in a transfer request today, but from Merril Lynch->TDAmeritrade. ML blocked me from buying AMC this morning.

The message they displayed was:

Due to recent volatility in certain securities and to reduce risk of market volatility, we will be placing restrictions on certain securities, including increased margin requirements and/or limiting transactions. Game Stop (GME) and AMC Entertainment Holdings (AMC) are now blocked for opening transactions and they have also been moved to a 100% margin requirement for existing positions. Additionally, opening orders for GME and AMC will be cancelled including Day and Good-till-Cancelled (GTC) orders.

Re: Transfer Stocks Out of Your Robinhood Account

#242

Post by Karunamon »

ROARosen wrote: post #229
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 don't even really get all the anger directed just at Robinhood. Apex clearing, which clears for virtually every other new age trading platform (and back in the day RH) also halted these stocks. I'm not sure of the biz aspect of this, but given the criticism RH historically got for pay-for-flow schemes (even while they were using Apex) I would assume it was RH which got the market-flow kickbacks - not Apex. So it's…

Robinhood screwed themselves thrice over. If their clearing outfit wouldn't handle these transactions anymore at reasonable prices, that's out of their control. Fine.

RH didn't have to send out a patronizing "we're doing this for your own good" email.

RH didn't have to continue failing at anything resembling forthright communication. (Including their tweets, blog posts, and outright false in-app messages that implied users sold their own shares and cancelled their own orders)

Worst of all, RH absolutely didn't have to sell people's shares out from under them at a dip in GME's price.

They were going to burn some amount of goodwill, but that could have been reduced from company-destroying magnitude to mere bad day had they simply not acted shady at every possible point. That last point is probably going to land them in severe legal hot water, their ToS won't mean much especially if/when the SEC comes knocking.

Re: Transfer Stocks Out of Your Robinhood Account

#243

Post by edgyquant »

brewdad wrote: post #204
testnew2 wrote: post #159

Earlier quoted context omitted.

Its not 0 sum

It's zero sum the way a poker table in Vegas is zero sum. Every dollar won is a dollar lost by someone else. Meanwhile, the casino takes their rake.

This isn’t always true though. If I buy an equity for 10$ and sell it to you for 11$ who then sells it for 13$ none of us have lost money. Only panic sells and crashes are zero sum in the way you are imagining.

Re: Transfer Stocks Out of Your Robinhood Account

#244

Post by ineedasername »

totalZero wrote: post #218
ineedasername wrote: post #180

The most fascinating thing, to me, about all of this is the potential for large groups of retail investors to invest in a company not because it's doing well, or they think it's undervalued, but because they want it to do well-- investing with the specific intent to give it the resources needed to do well. Perhaps unintended, this seems to be the net result with AMC. A few days ago they probably wondered how to keep…

I mean, that's a pretty legitimate reason to invest, no? Softbank bought Sprint with the intent to give it the resources needed to do well. They pumped money into the company to cover debt service until eventually it merged with T-Mobile. AMC got out of $600mm of debt as a result of its share price appreciation in all this madness. https://www.marketwatch.com/story/amc-entertainment-to-issue... Share price is not arb…

Sure: I guess what I find novel is that rather than a Softbank, a self-organizing process of retail investors would drive the process.

For AMC debt: wow, that's pretty insane. Lots more cash, much less debt. They should encourage employees to become premium reddit members as a thank-you

Re: Transfer Stocks Out of Your Robinhood Account

#245

Post by TuringNYC »

PragmaticPulp wrote: post #174
TuringNYC wrote: post #156

Earlier quoted context omitted.

>> 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. The solution would be to disallow this feature, not to stop trading of certain tickets on all accounts, most of which are seasoned and funded

The cost of trading meme stocks also increased exponentially due to regulatory requirements. Full explanation with math here: https://twitter.com/kralctrebor/status/1354952686165225478?s... Also, it’s not realistic to expect them to completely retool their entire app and infrastructure in a matter of hours to disallow margin-based trades of only certain securities. If this was a long-term concern I’m sure they’d do e…

If you want to side with current customers, another easy fix is to disallow new customers (if they cannot allow auto-margin for new customers.) How hard a change would it be to disable new account creation...at worst commenting out /customer/new on the route file for a day until they can fix the actual problem?

Re: Transfer Stocks Out of Your Robinhood Account

#246

Post by jcranmer »

tomerico wrote: post #226
PragmaticPulp wrote: post #174

Earlier quoted context omitted.

The cost of trading meme stocks also increased exponentially due to regulatory requirements. Full explanation with math here: https://twitter.com/kralctrebor/status/1354952686165225478?s... Also, it’s not realistic to expect them to completely retool their entire app and infrastructure in a matter of hours to disallow margin-based trades of only certain securities. If this was a long-term concern I’m sure they’d do e…

It's also hard to believe that their margin based algorithm doesn't have parameters that can be tuned easily. It's not the first time that a single stock has crazy volatility and speculation.

A financial institution didn't foresee a black swan financial event? Color me shocked.

If I'm reading the Twitter thread right, what killed Robinhood was the component of ">30% of your flow is in one stock", which is something that I could absolutely see never having happened to Robinhood until now.

Re: Transfer Stocks Out of Your Robinhood Account

#247

Post by [deleted] »

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…

[deleted]

Re: Transfer Stocks Out of Your Robinhood Account

#248

Post by jcranmer »

TuringNYC wrote: post #245
PragmaticPulp wrote: post #174

Earlier quoted context omitted.

The cost of trading meme stocks also increased exponentially due to regulatory requirements. Full explanation with math here: https://twitter.com/kralctrebor/status/1354952686165225478?s... Also, it’s not realistic to expect them to completely retool their entire app and infrastructure in a matter of hours to disallow margin-based trades of only certain securities. If this was a long-term concern I’m sure they’d do e…

If you want to side with current customers, another easy fix is to disallow new customers (if they cannot allow auto-margin for new customers.) How hard a change would it be to disable new account creation...at worst commenting out /customer/new on the route file for a day until they can fix the actual problem?

To be perfectly honest, given the way that narrative of the entire debacle has been built up to "hoi polloi stick it to the evil financial gurus", I don't think there is anything Robinhood could have done that wouldn't have immediately been spun as "THEY'RE TRYING TO BAIL OUT THE HEDGE FUNDS!"

Re: Transfer Stocks Out of Your Robinhood Account

#249

Post by MattGaiser »

ineedasername wrote: post #180

The most fascinating thing, to me, about all of this is the potential for large groups of retail investors to invest in a company not because it's doing well, or they think it's undervalued, but because they want it to do well-- investing with the specific intent to give it the resources needed to do well. Perhaps unintended, this seems to be the net result with AMC. A few days ago they probably wondered how to keep…

> investing with the specific intent to give it the resources needed to do well

Buying shares only sends money to the company if they issue new ones. I am not aware of Gamestop doing that.

Re: Transfer Stocks Out of Your Robinhood Account

#250

Post by shaklee3 »

blhack wrote: post #162
colechristensen wrote: post #38

Earlier quoted context omitted.

A whole lot goes on behind the scenes with securities trading, your interface to it as a retail trader buying and selling is only the tip of the iceberg. Most of the people talking about various conspiracy theories about brokerages have clearly very little idea of how brokerages work on the back end (and not very many people do know this) or what regulatory duties brokerages have and hwo that might inform decisions t…

Could you give us a rough overview? If I click "sell" on a share of tesla right now on my robinhood account, what happens then?

Read this: https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...
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