Dear Hollywood, Please make a movie out of this.
The Big Squeeze
The Other Big Short
Robinhood, in Need of Cash, Raises $1B from Its Investors
211–220 of 479 posts
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#212Earlier quoted context omitted.
> it's really woefully under-featured compared to just about any other broker e-trading software out there. Alternatively phased: It is easy to use even for people who are new to investing.
I think that it makes it worst even for new investors... maybe better for computer-illiterate people, but that, I don't know if it is still a thing.
[deleted]
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#213Is it just me or is the involvement of VCs here really strange? If Robinhood was anything like a traditional broker (or bank/broker combination) Venture Capital firms would not have been anywhere on the list of places to get emergency money.
Although I'm glad that RH has driven the price of trading down for everyone, this is one more reason why most people should keep their money with a more boring financial institution.
Reminds me of when RH launched a "checking" account and claimed it had deposit insurance and then in about one day regulators said "absolutely no it does not": https://www.forbes.com/sites/ronshevlin/2019/01/02/the-robin...
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#214Earlier quoted context omitted.
I had a neutral to negative view toward this product before today. In part due to the product’s UX having to change after a customer killed themselves and cited the app in their suicide note. [1] I noticed that before but bad stuff happens, I had not heard of further issues and it was likely a series of contributing factors. That said, this bind broke the entire concept of the branding of the product. I’d never insta…
They've lost the trust of people YOLOing on meme stonks. I'm sure it's a noisy part of their userbase, but still only a part. It would be interesting to see stats on how many people use RH for long-term investments (buy and hold, DCA, etc), and how many use it as a form of gambling (day trading, leveraged options etc).
Why does it matter whether the user is using it for long-term or YOLO-ing meme stonks.
Is American Airlines a meme stock? They were halted too? Think there were any admirable long term investors wanting to buy it today? I dont know, but what I do know is that they wouldnt have the choice if they were using Robinhood.
I think the main point people are upset about is that it just feels gross when the rug can and as we saw today WILL be pulled out from under you at the discretion of a few people within their brokerage.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#215Not sure I understand: High volume causes sudden operating expenses up to a billion? Like, they're launching more EC2 instances? Or is that because they suffer from slippage? And if so, why don't they adjust the spreads? And if it's slippage, why would they still allow selling but not buying? Color me skeptic, but this makes no sense. For now I believe they just come up with some story to mask their obvious, IMO crim…
Also, don't card companies pay net30/60? So even if customers were able to pay their orders, Robinhood only receives the money in 30 days but has to pay to the clearinghouse in two days. That would wreck RH in a volatile period like this.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#216To understand why this is happening, you need to understand the person that started it all: u/deepfuckingvalue https://www.reddit.com/user/deepfuckingvalue He posted updates regularly of his positions. Scroll all the way down and see how much money he made over time. As he started becoming more successful, more and more people wanted to replicate his success, eventually creating the movement that you hear about today…
I read somewhere that u/deepfuckingvalue is this guy[0], but can't confirm it. [0] https://www.youtube.com/watch?v=GZTr1-Gp74U&ab_channel=Roari...
That's very possible.
https://www.reddit.com/r/wallstreetbets/comments/kk0g0f/gme_...
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#217Earlier quoted context omitted.
I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.
I’m not keeping my money with a financial institution that lies to me. I know for a fact my bank lies. They've been fined hundreds of millions of dollars for money laundering (it's HSBC). A few years ago I looked in to moving to a more honest bank, but I couldn't find one that also met basic criteria like having access to cash points in the UK and having a half decent mobile banking app. Literally every major bank th…
In France, a lot of banks are cooperative banks. While not everything is perfect, their attitude is way different than banks under different status. My bank was never involved in some money laundering scandal, investment scandal or other, and their customer service was always very good. They also tend to have a more "local" focus. For example, one of their saving account is used to finance local entrepreneur.
If you can find a cooperative bank, I would definitely advised that you try them.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#218Earlier quoted context omitted.
It’s not a scam it’s just a pretty mediocre broker with a fancy ui. Lest we forget they introduced many traders to options, for better and worse. They are/were WSBs broker of choice. They changed the fee landscape in trading US-wide. It’s hard to say they weren’t impactful, though we can disagree on the positivity of the impact itself.
Can you point to any above average, or dare to say, good brokers?
Always depends what you're looking for.
I personally use IBKR because their margin interest rates are less than 1%, they have excellent fills and order routing, access to an overwhelming amount of products (equities, equity options, index options, futures, futures options, foreign markets, bonds, etc.) and features. Their portfolio margin feature lets you trade with a margin maintenance rate as low as 15%.
If you don't want them to sell your order flow (and offer you the industry's best margin rates by far) IBKR Pro is your thing.
A lot of people like Think or Swim, Schwab, Fidelity. If you compare, you'll see what I mean about fees though!
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#219Earlier quoted context omitted.
Yes, they are forced to sell and other robinhood users could not buy. It means they allowed selling and restricted buying that will eventually make stock goes down because no other person even if they want to can't buy.
So the market price which is made from all transactions from all brokers will drop because robinhood users could not buy. That makes no sense to me. If they really wanted to buy they could use another broker? If the market really is dropping then tough luck. You can lose all your money investing in the stock market. If you're leveraged you can lose even more (which might explain why some accounts were closed).
It takes days to get approved with another broker and transfer money there. As we saw, the damage was already done.
Most retail investors only use Robinhood, why have 2 different brokers?
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#220Earlier quoted context omitted.
I’m not keeping my money with a financial institution that lies to me. I know for a fact my bank lies. They've been fined hundreds of millions of dollars for money laundering (it's HSBC). A few years ago I looked in to moving to a more honest bank, but I couldn't find one that also met basic criteria like having access to cash points in the UK and having a half decent mobile banking app. Literally every major bank th…
This reads like an ad, and Monzo is super popular in the UK, like it would be the obvious recommendation for anyone looking to bank in the UK with a smartphone...
While Monzo is popular it's not profitable, and their latest annual accounts stated that they may not be able to continue as a going concern.
Starling is the only challenger bank that's profitable ATM (and it's only just profitable)