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.
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Robinhood cuts losses after transaction revenue drops
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Re: Robinhood cuts losses after transaction revenue drops
#32If 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.
Fyi - Vanguard is only good for simple, long term holding. If you are interested in a little more day trading type activity, then Schwab, TD, and Fidelity are much better.
Re: Robinhood cuts losses after transaction revenue drops
#33Earlier quoted context omitted.
Fidelity. Very nice desktop and mobile apps. Trustworthy and established. Robinhood cant even be compared to it. While you are at it, get yourself some FNILX stocks and collect dividends on an index.
Fidelity mobile sucks though. Robinhood is makes gambling savings fun!
Pretty sure they have Robinhood-esque mobile update coming.
Edit: It's already here.
Re: Robinhood cuts losses after transaction revenue drops
#34Re: Robinhood cuts losses after transaction revenue drops
#35What 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.
Exactly this. RH has a business model closer to casinos than it does to Schwab or Fidelity.
The headline feature for RH is "fee-free trading" which is fine, but once you read past the headline you'll come upon a vast amount of gamification, calls to action, and every other tool borrowed from gacha games and gambling generally.
In that vein I would expect their corporate performance to track more closely with gambling and F2P gaming peers than they would track more established stock trading apps.
More cynically RH's product was making people feel like geniuses in a bull market. The bull market is now gone.
Re: Robinhood cuts losses after transaction revenue drops
#36If Robinhood had to close shop, who's a good broker to transfer holdings over to?
If they didn’t have to close shop, it’s a good time to move from that steaming pile of trash.
Fidelity has been good to me.
Re: Robinhood cuts losses after transaction revenue drops
#37If Robinhood had to close shop, who's a good broker to transfer holdings over to?
I transferred from Robinhood to Fidelity years ago and never looked back. Mobile app and website work great, had to call customer service twice and they were always helpful, good ETF screener tool. They have local branches in most major metro areas for in-person customer support as well. Commission-free trades just like Robinhood. Seamless integration with most tax software.
I just pile leftover savings into Small-Cap Value funds though, so my needs are rather minimal.
Re: Robinhood cuts losses after transaction revenue drops
#38Stock 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.
Well, they kept it running long enough for the VC's to get their cash out.
Re: Robinhood cuts losses after transaction revenue drops
#39> 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…
Yep. My local credit union is offering 4.5% on an 18 month > $1,000 CD.
Re: Robinhood cuts losses after transaction revenue drops
#40If Robinhood had to close shop, who's a good broker to transfer holdings over to?
Interactive Brokers. If you are an occasional trader, go with the Lite option - it is commission-free but relies on pfof, just like RH. If you are more serious, go with Pro and you'll get routing to exchange in most cases.
TWS (their desktop app) has many options and target pros. However, I haven't used their web/phone apps.
> If Robinhood had to close shop
I doubt that will happen. Citadel will jump in and inject money, just like they did with Plotkin's Melvin Capital.