They’ll give you 3% on savings by investing it in treasuries and pocketing the difference. The 20 year is now 3.03%
and interest rates are rising
Its the Theranos of finance!
SIPC Says It Has Serious Concerns About Robinhood's New Product
281–290 of 322 posts
Re: SIPC Says It Has Serious Concerns About Robinhood's New Product
#282Earlier quoted context omitted.
I can't wait until they bring in all the dark patterns from travel sites; "1,213 people currently considering this stock" or "act now; only 6MM shares left!"
> 1,213 people currently considering this stock If I had browser data from everyone on RobinHood, and was able to track which stocks they were looking at, I might be able to make money front-running.
The HFTs they are likely selling their data to are probably already way ahead of you.
Re: SIPC Says It Has Serious Concerns About Robinhood's New Product
#283Earlier quoted context omitted.
This is extremely misleading and no one should be using bond funds as a checking/savings account replacement. You have mark to market and liquidity risk here which in normal circumstances you do not have with a savings/checking account. Additionally, Robinhood is reportedly investing proceeds in US Treasuries. US Treasuries have a completely different risk profile than corporate investment grade bonds.
> no one should be using bond funds as a checking/savings account replacement Literally all money market accounts are bond funds under the hood, actually.
With the important difference that money market accounts should never lose principle (aka "breaking the buck"). It has happened, but its fairly uncommon.
Bond funds, however, frequently can and do lose value - if interest goes up, price goes down (the reverse should also be true, though).
Re: SIPC Says It Has Serious Concerns About Robinhood's New Product
#284Earlier quoted context omitted.
So confusing: Iceland is in the Schengen Area, and the EEA, but not the EU or Eurozone
This helps: https://upload.wikimedia.org/wikipedia/commons/3/3c/Supranat...
A bit outdated it as Latvia and Lithuania are in the Eurozone.
Probably other changes too.
Re: SIPC Says It Has Serious Concerns About Robinhood's New Product
#285Earlier quoted context omitted.
> They shouldn't be using Robinhood to buy individual stocks, buy cryptocurrency, or do options trading. What if they do it for fun? Personally, I would have fun having a few thousands there (but I'm Canadian), it's not worse than having a few thousands over a gaming computer, or gambling at the casino. If you consider Robinhood as the way to finance your retirement, well you are doing something pretty bad, but that…
If you understand what you're signing up for and still want to dabble in stock trading for fun then sure. Go wild. Everyone needs a hobby. But the homepage of robinhood.com has the following call to action above the fold: > Investing, Checking & Savings. All for Free. > Robinhood gives you the tools you need to grow your savings, invest in your future, and do more with your money. Does that sound like "this is not an…
What should their ad copy say instead? "Robinhood gives you the tools to lose all of your money making impulsive decisions" ?
All brokerage accounts advertise themselves as investments, even if the reality is that idiots open them and lose all of their money trading options.
I mean, if you really have this expectation of marketing copy, I don't blame you, that's a totally legitimate position to hold. It's just not one I would expect many people to share.
Re: SIPC Says It Has Serious Concerns About Robinhood's New Product
#286Earlier quoted context omitted.
Or processed cheese food [1] [1] https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFR...
Try "potted meat food product" on for size. Ingredients: Mechanically Separated Chicken, Beef Tripe, Partially Defatted Cooked Beef Fatty Tissue, Beef Hearts, Water, Partially Defatted Cooked Pork Fatty Tissue, Salt. Less than 2 percent: Mustard, Natural Flavorings, Dried Garlic, Dextrose, Sodium Erythorbate, Sodium Nitrite
Seems like a good way to value-add the parts of animals that would otherwise get turned into dog food or exported.
Re: SIPC Says It Has Serious Concerns About Robinhood's New Product
#287Earlier quoted context omitted.
needs ECJ jurisdiction, and ECHR. literally unplayable. but for real, country names would be helpful too
ECJ jurisdiction is the EU, and the ECHR applies to all Council of Europe members.
Whats that one flag outside of the council which can mint Euros
Re: SIPC Says It Has Serious Concerns About Robinhood's New Product
#288Re: SIPC Says It Has Serious Concerns About Robinhood's New Product
#289Earlier quoted context omitted.
It seems like RH is taking this to the next step (at least with respect to Fidelity) by building typical checking account features around it, with parameters that are best-in-class.
Fidelity already has best-in-class checking account features? The CMA account has mobile image deposit, free online bill pay, check writing (with free checks), free ACH transfers, free wire transfers, ATM/debit card (with ATM fee reimbursement at any ATM worldwide, no less), etc. The only “best-in-class” factor that Robinhood has presented is setting the interest at 3%.
Good to know, I was reading briefly from their site and didn't see any of those things expressed upfront.