Stock market has been in a slump all year, crypto down huge. Close to 100k layoffs in tech (according to layoffs.fyi). I think people got other things on their mind than trading stocks/crypto.
how times have changed
Robinhood cuts losses after transaction revenue drops
21–30 of 174 posts
Re: Robinhood cuts losses after transaction revenue drops
#22> Rising interest rates helped lift quarterly net interest revenue to $128 million, more than doubling from the same period a year ago. Chief Financial Officer Jason Warnick said the company has about $17 billion in assets that generate interest revenue. While Robinhood used to pay a competitive interest rate for cash in the account, it is now 1.5% while Fed risk-free rate is now 3.75%+. You need to pay for Gold subs…
It wasn't long ago when I felt 1.2% was a good CD rate. Now I'm canceling all of them to move to online savings account paying 2-2.5x that amount.
https://www.schwab.com/cd-rates-test
1-3 month CDs are 3.9%
Re: Robinhood cuts losses after transaction revenue drops
#23I suspect that Robinhood's active user count will be highly correlated with market/crypto returns.
Interesting thought.
Is Robinhood that common in the crypto world? I know they support it, but I would have guessed it was an “also” feature rather than a driver.
Re: Robinhood cuts losses after transaction revenue drops
#24If Robinhood had to close shop, who's a good broker to transfer holdings over to?
Schwab or Vanguard. Vanguard pioneered the low cost index fund and Schwab was one of the original "discount brokers". Their innovations were adopted by every other broker, driving down costs for the small trader. They remain allies of small investors.
This is no good for middle class day traders
Re: Robinhood cuts losses after transaction revenue drops
#25Why would anyone trust a financial institution with their money when they have acted like Robinhood as acted?
This is a fundamental question.
Re: Robinhood cuts losses after transaction revenue drops
#26I suspect that Robinhood's active user count will be highly correlated with market/crypto returns.
Interesting thought. Is Robinhood that common in the crypto world? I know they support it, but I would have guessed it was an “also” feature rather than a driver.
Crypto was responsible for approximately 35% of Robinhood's revenue in 2021.
Re: Robinhood cuts losses after transaction revenue drops
#27If Robinhood had to close shop, who's a good broker to transfer holdings over to?
Depends what you are trying to do.
Vanguard, Fidelity, Schwab, TD Ameritrade (while they are still separate-ish) all have different pros and cons.
What do you need?
Re: Robinhood cuts losses after transaction revenue drops
#28Re: Robinhood cuts losses after transaction revenue drops
#29What is this in the context of the wider market vs other Retail brokers? I don't think this is a knock against RH more a description of what's happening in main-street.
I certainly think it tells us something about RH. You don't see Vanguard or Fidelity losing a third of their userbase in a year.
Re: Robinhood cuts losses after transaction revenue drops
#30Earlier quoted context omitted.
Schwab or Vanguard. Vanguard pioneered the low cost index fund and Schwab was one of the original "discount brokers". Their innovations were adopted by every other broker, driving down costs for the small trader. They remain allies of small investors.
This is no good for middle class day traders
They've always got Vegas.