231–240 of 479 posts
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And right after saying they don't have any liquidity problems said, "We're #1 on the app" while retail investors were losing millions because of expiring options/stocks. Absolutely tone-deaf. Not denying that all securities have risks, but that was a bad response imo.
Retail investors lost millions because of an inability to buy?
Crippling half the order book just can't be right.
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If you need a EUR account with a good app, TransferWise, who power Revoluts multicurrency action on the backend, are pretty decent. Horrid luminous green card though. I'm an investor in Revolut due to their aggressive growth strategy, but I wouldn't use them personally. As for Monzo, I like their app but missing features like being able to view your full CVV number in app, or link the app to all your other bank accou…
TransferWise aren't a bank so the financial protects are slightly different I use them for some of my overseas customers, my only challenge with them is the limited number of currencies they support e.g. had to open a Revolut account to get payment from a Canadian customer
Is 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 institut…
They say WallStreetBets is "4chan found a bloomberg terminal" - Robinhood is Silicon Valley masquerading as a real broker; perhaps even the Juicero thereof.
I only have a small amount of play money there, and I continue to draw it down. TD Ameritrade and Vanguard serve as my real brokers.
Side note: I kinda wonder what Bogle would have to say about all this if he were still alive; probably would have killed him.
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Retail investors lost millions because of an inability to buy?
An inability to buy means an inability to squeeze the short harder, and depending on how hard you have squeezed that can affect the overall success of the squeeze. Also they apparently forced sale on some accounts, which combined with an inability to buy more, definitely affected stock prices.
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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).
That's like 50 percent of their user base apparently, according to reports that 50 percent of Robin Hood accounts own gme.
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Except, as SI/Float was at 139%, there was a guaranteed sucker to buy it off them at basically any price - unlike in a Ponzi scheme where you never know if there’s going to be another sucker.
Hasn't SI/Float been around there for more than a year? I'm not an expert on this. Source: https://www.ortex.com/symbol/nyse/gme/short_interest
It is a pyramid, but the base layer of “suckers”, those that end up taking the losses in a standard ponzi/pyramid are already determined ; they are the most finance literate people in the market, and they did it willingly. WSB is just adding layers in the middle which is rational.
The short sellers knew their risks perfectly well and did it willingly. They just didn’t expect anyone will figure out how to take advantage of the setup they created.
I wonder if Robinhood is preparing for the possibility that its margin book gets blown up when GME inevitably crashes. Crashing price creates cascading margin calls and they can't liquidate their customers' positions fast enough and end up having to cover their losses, rendering them insolvent. Sequoia, thinking that the fundamentals of the company are still solid long term and that they can wash their hands of this…
It was part of what caused the drop in combination with the no buying.
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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…
i've used: 1. revolut - these guys are complete jokers. closed after being asked to provide the proof of funding 3 times in 3 months. 2. hsbc/first direct - somewhat decent. but i only use it to top up my other accounts. i try to avoid them, as they're just too big. 3. starling - simple, no-nonsense banking from a startup. 4. revolut business - had my account closed down by the "bank" because they didn't want my busi…
Customer support, features roll out, chargebacks etc - all way better experience than the local banks.
They singlehandedly forced all the banks in my country to implement apple pay / google wallet. For years nobody bothered, the moment Revolut entered the market, with apple pay support, the banks scrambled to add it themselves.
One time I even had my card stolen while traveling abroad - got a new card within two days, global delivery. I was very pleasantly surprised.
But I also understand the risks and don’t really use them for long term asset management for now. Just as a front for all of my expenses - their analytics are just awesome.