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Robinhood S-1 IPO

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Re: Robinhood S-1 IPO

#281

Post by kasey_junk »

np_tedious wrote: post #280
adabyron wrote: post #113

Earlier quoted context omitted.

M1, E-Trade, Trading 212, Interactive Brokers, TD Ameritrade/Schwab and WeBull halted options as well.[1] There are a few more I'm missing. I wasn't happy about it but I don't blame them. As much as people were talking about over 100% of GME shorted, I can't imagine how much margin on top of margin people were trading while there options had yet to be settled. If anything the issue should be how long it takes a trade…

I don't know the exact situation with all of them, but at least Robinhood and WeBull both occurred due to reliance on Apex Clearinghouse

https://blog.robinhood.com/news/2018/10/9/introducing-cleari...

Robinhood has been self clearing for years before the GME incident

Re: Robinhood S-1 IPO

#282

Post by rwmurrayVT »

tayo42 wrote: post #272
randomhodler84 wrote: post #266

Earlier quoted context omitted.

It was never ok. Trade fees were a gatekeeping measure to dissuade retail investors. Since RH started I have been able to build a portfolio of many single individual stocks (my own market “index fund”), some worth less than $10. This was never possible under pay per trade regime.

What's the point of investing less then 10 dollars?

Earning a return greater than the 0.10% offered by my credit union. Should only those with more capital than 1mm earn returns?

Re: Robinhood S-1 IPO

#283

Post by rfd4sgmk8u »

adam_arthur wrote: post #233
rfd4sgmk8u wrote: post #6

buy buy buy. Bullish! Opinion: * RH will drag the industry to T+0 settlement, thus breaking wall street shenanigans with 100%+ short selling. Inevitable to see the merging of on-chain settlement with traditional stonks. * RH has the largest amount of Dogecoin AUM globally (8.7B $USD equiv) * RH has a lot of bitcoin, ether and other coins AUM. * RH will eventually be the biggest broker in the US (world)? * RH encourag…

The biggest broker in the world? I use both Robinhood and Schwab, and the Robinhood app is absolutely terrible. The visual aesthetic is nice, but usability is awful... I don't really understand the hype. For example they have no dedicated orders screen to cancel limit order that I can tell. There's an "inbox" where your limit order will show up after some delay. I placed an order once and decided to cancel it, but th…

Totally agree, I have multiple brokerage accounts and RH is the least feature rich. RH was my first, but I understood its limitations early. It did also allow free trades which was unbelievable at the time. It is the easiest to use and most approachable broker for new people, young people. The UI is kinda genius, really, for what it is.

Most people will stop at RH, the idea of a complex brokerage account is beyond their comfort zone. They will not see the need to look elsewhere, as it has everything they believe they need in one app.

These things are not about you or I, they are about the acceptability by the masses. And the masses love RH. You cannot dismiss the huge effect they had on the industry with their business model, and they have lots more things planned.

Re: Robinhood S-1 IPO

#284

Post by aeyes »

DSingularity wrote: post #92
gberger wrote: post #75

The Chief Legal Officer, Daniel Gallagher, made $30M this year. It breaks down into $257k cash, $4.2M bonus and $25.5M in stocks and options. This is a far larger amount than any other executive. In 2011-2015, Daniel Gallagher was 1 of 5 Commissioners of the SEC (Securities and Exchange _Commission_), the highest role of the SEC, appointed by the US President. He was hired by Robinhood in May 2020, and his previous j…

How do you value the stock options of a company that hasn’t had its IPO?

When I worked at a pre IPO startup they always used the valuation of the last investment round.

Re: Robinhood S-1 IPO

#286

Post by kasey_junk »

jjeaff wrote: post #279
rburhum wrote: post #48

I understand that many give Robinhood crap because it is not "sophisticated enough" or because of the Gamestop fiasco. Although many startups like to claim that they are "democratizing [x]", I honestly believe they did it. I have many friends that never traded before, and after they got their Robinhood account they feel comfortable enough to do it often. Even myself, who used to only trade a couple of times a year, s…

Democratizing -investing- is a good thing. But Robinhood democratized -day trading-, i.e. gambling. I think Wealthfront or the few other similar companies actually democratized investing.

Let me play devils advocate for a minute. Robinhood had the clear market improvement of making trades cost zero dollars. Prior to their entry into the market $7 trades were considered cheap.

Meanwhile wealthfront is marking up investment opportunities that are widely available in funds or etfs for much cheaper.

I think wealthfront is much more predatory than Robinhood if judged on the basis of services rendered to informed actors.

Re: Robinhood S-1 IPO

#287

Post by gpt5 »

mherdeg wrote: post #239

Robinhood closed my brokerage account after I did transferred out assets (via ACATS transfer, to get a signup bonus with another brokerage without realizing capital gains). A few months later I asked how to reopen the account, using the "reopen account" form in their app to generate a support ticket. Three weeks later they sent an email saying that my account was permanently closed and I should apply for a new accoun…

The fact that you are so determined to move back that you are dealing with this amount of shit, makes me want to invest in them.

Re: Robinhood S-1 IPO

#289

Post by loeg »

jimmydorry wrote: post #256
this_user wrote: post #218

Earlier quoted context omitted.

> Finally, the GameStop fiasco was unforgivable and only a naive fool would accept the explanation given. Citadel is the MAJORITY of Robinhood revenue and was opposite that trade. Only someone who doesn't understand how any of this works would believe these absurd conspiracy theories. 1) Citadel is one of FIVE of wholesale market markets RH use. Even if they did refuse to accept orders for GME, why wouldn't their fou…

I'm not GP but you are missing the most important fact: a bit over 10% of Robinhood's base revenue was PFOF. Of that more than 10%, the top 3 (~75% of the total) paying them were Citadel, Susquehanna and Wolverine. Losing PFOF from Citadel alone means kissing away more than 5% of their _revenue_. With essentially no cost associated with PFOF, these payments account for a large portion of their profit.

They would just sell that order flow to the next highest bidder. It would be a marginal, not total, loss.

Re: Robinhood S-1 IPO

#290

Post by capitalsigma »

alasdair_ wrote: post #271
this_user wrote: post #218

Earlier quoted context omitted.

> Finally, the GameStop fiasco was unforgivable and only a naive fool would accept the explanation given. Citadel is the MAJORITY of Robinhood revenue and was opposite that trade. Only someone who doesn't understand how any of this works would believe these absurd conspiracy theories. 1) Citadel is one of FIVE of wholesale market markets RH use. Even if they did refuse to accept orders for GME, why wouldn't their fou…

Part of the problem is that Citadel had insight into the RH order flow before the rest of the market. Normally this wouldn’t matter but this also meant they get to see orders to buy GME went from to zero in an instant. Given their position on the other side of that trade, this advance warning (potentially) let them take that fact into account before anyone else and thus trade accordingly. RH stopping all GME purchase…

> RH stopping all GME purchases was market-moving news and citadel got to know before anyone else, to the detriment of those RH users that were long GME.

Yes, that is the point of paying for order flow. That is doubtless why RH users don't pay commissions.

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