The SEC should be investigated by Congress for allowing companies like RobinHood for wrecking ordinary people's lives with tempting loans for gambling.
Margin trading isn't new to any brokerage.
Robinhood stock trading app confirms $110M raise at $1.3B valuation
321–330 of 394 posts
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#322Earlier quoted context omitted.
I use Robinhood for passive funds. VOO, VYM, UPRO, SHY, etc.
Nice, I would probably use it the same way. Would you know if Robinhood supports pre-authorized purchase plans? For example the ability to buy x shares of VOO on the first day of each month automatically? I didn't see anything on the FAQ but maybe I missed it. Pre-authorized purchase plans + no commissions could be interesting.
I'm not aware of any such feature. You can set up a monthly deposit into your Robinhood account, and you'll get a notification on your phone each time it goes through, but you have to manually submit purchase requests each time as far as I know. At least, that's what I'm doing! I'd love to hear of an alternative. Not that hard to hit the sequence of buttons each month, though.
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#323Earlier quoted context omitted.
Unless I misunderstood him, he's not complaining that people can make their own decisions with their money, aka that anyone can use this service even if they're not well versed in that field, he's complaining that Robinhood entire business model is based on pushing the very users who don't know how to use it in a sane way, to do it anyway. That will be the company's lifeline, as its way to make money. I can see the b…
However, they still sell their client order flow to the bank that pays them the most to execute their trades. This isn't illegal and was a HUGE point of Michael Lewis's hack-n-slash book on electronic trading "Flash Boys". If my Robinhood trades of 100 lots or more execute at a few pennies higher than the price when I place the order, I think that is entirely fine. Why? Because it costs 5-10 to trade from Etrade or m…
What are your thoughts on RH being mobile only and how that affects your ability to manage this amount of money. Isn't it hard to keep track of your positions, performance, etc with all those taps and lack of ability to export or read on a real device?
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#324“But ‘how are you going to make money long-term?’ has been a question mark” Bhatt says. Gold has answered that question.” A Gold subscription lets users borrow up to double the money in their account to trade on margin with leverage Wow, so that's effectively opening up new easy to get credit vehicles for unsophisticated investors. How could that go wrong? Even if you are a professional trader you'll take a bath on m…
I worked in risk management in the mid 90's with Bond to Swap hedging.
You have it right.
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#325Earlier quoted context omitted.
I use Robinhood for passive funds. VOO, VYM, UPRO, SHY, etc.
Nice, I would probably use it the same way. Would you know if Robinhood supports pre-authorized purchase plans? For example the ability to buy x shares of VOO on the first day of each month automatically? I didn't see anything on the FAQ but maybe I missed it. Pre-authorized purchase plans + no commissions could be interesting.
They have an auto-deposit feature[0], but it doesn't purchase the stocks for you.
There is an unofficial api[1] you could use to cron-buy, though it's unofficial-ness means I don't officially endorse :)
[0] https://support.robinhood.com/hc/en-us/articles/206445496-Tr... [1] https://github.com/sanko/Robinhood
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#326[deleted]
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#327Earlier quoted context omitted.
This comment is so wrong I don't even know where to begin.
What a condescending response. How is it wrong? Look at VFINX for example: - VFINX is up 72% in 10 years. AMZN for example is up 1220% in the same 10 years. - VFINX is up 72% in 5 years. XIV is up 530% in the same 5 years.
Lookup: Survivorship Bias
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#328Earlier quoted context omitted.
However, they still sell their client order flow to the bank that pays them the most to execute their trades. This isn't illegal and was a HUGE point of Michael Lewis's hack-n-slash book on electronic trading "Flash Boys". If my Robinhood trades of 100 lots or more execute at a few pennies higher than the price when I place the order, I think that is entirely fine. Why? Because it costs 5-10 to trade from Etrade or m…
If my Robinhood trades of 100 lots of more execute at a few pennies higher than the price when I place the order They're not really allowed to do that and I don't think they are doing that. Robinhood (or whatever wholesaler they route your order too) is required to execute your order within the nbbo. They can't just e.g. fill your buy orders a few cents above the national best offer because they want to make some ext…
I'm familar with NBBO, my previous employer (Virtu Financial) and current employer (another large electronic trading firm) are very well known HFT firms but I'm in tech, not the trading side. That doesn't mean the NBBO doesn't change before your order can fully execute? Is it fair to assume you've never heard of RBC's Thor[1] and aren't super familar with maker-taker rebates and the scandal behind them? The NBBO and the proliferation of trading exchanges is in fact what allows this to be possible legally. Like many regulations, it became a tool to perform the types of things it was designed to prevent. This article[2] has an interesting take on the NBBO wrt the SIP that is used. Many firms can calculate their own information faster than the NBBO updates. Note that this isn't the kind of trading (speed only) that my current employer does at all, which is why I sleep well at night.
[1] https://en.wikipedia.org/wiki/THOR_(trading_platform)
[2] http://www.nanex.net/aqck2/HowSlowIsTheNBBO_%20A_Comparison_...
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#329Why is there no browser version? Some of us don't like using our phones for this type of stuff. Just because I don't like little screens. Other than that, it is about time someone broke up this market. I welcome our new free overlords.
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#330Earlier quoted context omitted.
However, they still sell their client order flow to the bank that pays them the most to execute their trades. This isn't illegal and was a HUGE point of Michael Lewis's hack-n-slash book on electronic trading "Flash Boys". If my Robinhood trades of 100 lots or more execute at a few pennies higher than the price when I place the order, I think that is entirely fine. Why? Because it costs 5-10 to trade from Etrade or m…
What are your thoughts on RH being mobile only and how that affects your ability to manage this amount of money. Isn't it hard to keep track of your positions, performance, etc with all those taps and lack of ability to export or read on a real device?
It bugs the crap out of me that they don't integrate with other services like Mint. Right now I do a few things. I manually track my position using personal capital (I can't recommend this service / app enough for tracking ALL of your investments and planning for your future). It is kind of like mint, but exclusively for your investments (https://www.personalcapital.com/)
I've written a fair bit of code (python) to parse my statements and make sure things true up with what personal capital says. The app thing is annoying, but RH just closed 110M and they'll get more functionality in the future. You're not the first person to ask that and I figure eventually they'll have to open things up or they'll lose customers (like me). Right now, I'm ok with using it for a year or two provided they allow me to continue no-fee trades.