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Robinhood S-1 IPO

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Re: Robinhood S-1 IPO

#291

Post by wallawe »

fullshark wrote: post #25
bmmayer1 wrote: post #3

$1 billion in top line revenue in 2020. Wow.

~70% was transactions and ~20% was interest. For comparison about 60% of Etrade's revenue is interest and 30% is fees + commissions. Either Robinhood has found a smarter business model re: selling order flow or they are making a killing on crypto fees. The commission business model is dead for good I think. https://www.nasdaq.com/articles/net-interest-revenue-will-fo...

Commission model is going nowhere. Ask anyone who trades for a living. They pay handsomely for direct market access.

Re: Robinhood S-1 IPO

#292

Post by nvr219 »

bob1029 wrote: post #251
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…

I went through this exact same scenario. Had to create another email address to get the 2nd account going. Total garbage experience.

Why did you want to go back there so bad?

Re: Robinhood S-1 IPO

#293

Post by u678u »

tofuahdude wrote: post #13

Risk factors are lovely: We have been subject to regulatory investigations, actions and settlements and we expect to continue to be subject to such proceedings in the future, which could cause us to incur substantial costs or require us to change our business practices in a manner materially adverse to our business. We are involved in numerous litigation matters that are expensive and time-consuming, and, if resolved…

Regulation is so critical, the financials I've worked at are soul-destroying because of the bureaucracy. Its impossible to do anything. I'm surprised RH has managed to get this far, I'm sure they'll get fine after fine until they start to stagnate like everyone else.

Re: Robinhood S-1 IPO

#294

Post by tayo42 »

rwmurrayVT wrote: post #282
tayo42 wrote: post #272

Earlier quoted context omitted.

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?

Keep it in your wallet or put it on a blackjack table. Or yes put it in a savings account that won't disappear until you can build up money to invest with.

Re: Robinhood S-1 IPO

#295

Post by daxaxelrod »

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…

Funny, same thing happened to me. https://imgur.com/a/8MDZHti

I had to close my account for work. I left that company and wanted to open back up my robinhood account. Guess not

Re: Robinhood S-1 IPO

#296

Post by loeg »

kasey_junk wrote: post #286
jjeaff wrote: post #279

Earlier quoted context omitted.

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 in…

Trades of index mutual funds and ETFs held in the administrator’s brokerage were free for years before RH. (Eg, Vanguard funds at Vanguard and Fidelity funds at Fidelity.) What RH accelerated was $0 individual stock trades, which are not great for retail investors at any price.

Re: Robinhood S-1 IPO

#297

Post by onlyrealcuzzo »

lottin wrote: post #164
gruez wrote: post #135

Earlier quoted context omitted.

>Actually the Fed doesn't pump dollars into the market Except when they did. Random google search: >The central bank began purchasing ETFs such as the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) and the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) in early May last year. However, even if all they do is buy bonds, money is fungible so those purchases will still spill over to other markets as inve…

If you are a bond holder, and the Fed buys $1000 worth of bonds from you for $1000, how is this causing everything to go up in price? Notice that your purchasing power is exactly the same before and after the purchase.

They don't buy $1000 of bonds from you for $1000 dollars. The whole point is to push yields down. When yields go down, prices go up. So they are buying what was $1000 worth of bonds for more than $1000.

Re: Robinhood S-1 IPO

#298

Post by weird-eye-issue »

agumonkey wrote: post #46
paulpauper wrote: post #42

Earlier quoted context omitted.

good fonts, contrasting colors, and large buttons. UI is so important. never underestimate it

won't name them but other big exchanges phone apps are pretty nifty.. you can operate lot with a thumb it was a bit surreal no advanced trading / charting / analytics but still quite surprising

They aren't an exchange

Re: Robinhood S-1 IPO

#299

Post by mattbrewsbytes »

atombender wrote: post #190
mattbrewsbytes wrote: post #86

Earlier quoted context omitted.

I have read anecdotes that their ToS is geared towards them owning the securities because they pool purchases. Their business model is the brokers are the ones that actually pay them and potentially hold the securities. Also, from their recent "Systemic Supervisory Failures" [0]: > Between 2018 and late 2020, Robinhood experienced a series of outages and critical systems failures. The most serious outage occurred on…

Robinhood is a broker-dealer, and is subject to the same regulations as everyone else. All the major brokerages hold securities under their name ("in street name") on behalf of the customer. You still retain legal ownership, even for fractional shares. As far as I know, Robinhood has its own clearing house subsidiary, Robinhood Securities, that handles the share bookkeeping, including the fractional share inventory y…

What I was referring to is most RH accounts are setup as margin because of instant deposits. This means they can liquidate that account without your action. IANAL but it might help to compare their TOS against other brokers.

This latest fine isn’t there first fine. I wouldn’t trust them with a penny. There is too much shady stuff coming to light with RH.

Re: Robinhood S-1 IPO

#300

Post by mattbrewsbytes »

chirau wrote: post #229
elliekelly wrote: post #160

Earlier quoted context omitted.

> Even myself, who used to only trade a couple of times a year, started with $300 in my Robinhood account a few years back. Now I have at least ~60k that I rotate around in my Robinhood account on a daily/weekly basis. I don’t think trading more stocks and trading them more frequently is a “better” or even “democratized” outcome. For the vast majority of people trading more shares more often is an objectively terribl…

Democratization is not about making the correct decision or investment strategy. It is about your freedom and ability to make decisions. Robinhood allowed people the choice to buy, sell or not do either, daily easily and from anywhere. That is democratization.

You can do all that with other brokers mobile apps, RH may have better UX but their system stability under heavy traffic doesn’t hold up.
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