341–350 of 394 posts
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And Fidelity is at $4.95 which is the lowest for big brokerages I think https://www.fidelity.com/why-fidelity/pricing-fees
Schwab dropped to the same. If anything Robinhood has benefitted everyone because it's pricing model has pressured other brokerages to lower fees.
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At the end of the day, you can't live in a stock.
but it does still exist
I've been using Robinhood for the past year and made a 14% return which amounted to an extra $1500 in my pocket that I wouldn't otherwise have. There is so much negativity surrounding Robinhood here and I think it's coming from speculative people who haven't actually used Robinhood and can't assess it empirically. They charge _0_ fees. What's so anti-robinhood about that? If you're concerned about them making money o…
To play devil's advocate, the S&P 500 is also up by over 14% for the past year with likely less risk and drawdown due to diversification.
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As a small investor, borrowing money to invest is almost invariably a terrible, terrible idea, because any return you make on the investment will likely be cancelled out by the interest paid to borrow the money. I just looked up margin interest rates, for loans of 10 000 or less (which is what we are likely talking about with robin hood) the interest rate is Base Rate + 1.25% which is 8.50% interest. I don't know man…
> I just looked up margin interest rates, for loans of 10 000 or less (which is what we are likely talking about with robin hood) the interest rate is Base Rate + 1.25% which is 8.50% interest. Is that from Robin Hood? If so it's a travesty specific to them. You can borrow from Interactive Brokers for 2.4%, which is a lot easier to overcome even with straight broad-market ETFs. [0] [0] https://www.interactivebrokers.…
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>Enticing millenials to "trade" individual stocks is quite possibly the most anti-Robinhood thing I can think of. Listen, I understand that this is widespread, so I'm not targeting you specifically. But could we try not to use generalizations like "millenial", especially when they refer to vaguely defined generational boundaries? Your point is very strong, and stands on its own without making what I interpret as an i…
I used the term as it was originally intended, to describe an age group in the context of marketing a product. Robinhood's massive growth is being driven largely by their target of "millennials" (ie. young adults) coming to the platform without any allegiances to legacy brokers. The millennial customer base is one of the reasons cited for their valuation, since legacy brokers have had trouble gaining younger customer…
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> I just looked up margin interest rates, for loans of 10 000 or less (which is what we are likely talking about with robin hood) the interest rate is Base Rate + 1.25% which is 8.50% interest. Is that from Robin Hood? If so it's a travesty specific to them. You can borrow from Interactive Brokers for 2.4%, which is a lot easier to overcome even with straight broad-market ETFs. [0] [0] https://www.interactivebrokers.…
No it wasn't robin hood, it was just basic rates charged by another firm. I figured robin hood is going to charge the industry standard. But that 2.4 % interest rate is being charged daily on those loans so that's even scarier.
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> Wouldn't want to enable people to make their own decisions with their money, would we? While we're on that subject, Pattern Day Trading restrictions[0] are a fine example of how arbitrary regulations created with good intentions can lead to negative outcomes. How it works is that margin accounts must maintain an equity balance of at least $25,000 in order to day trade freely. Otherwise, you're allotted three round-…
I recently got interested in the markets and the PDT rules are one thing that I feel I need to hear more informed opinions on before formulating my own. I'd love if more people chimed in here to put in their .02 cents on the benefits/drawbacks/intentions of the current rules.
In the end margin is irrelevant if you only trade with money that is actually available. Robinhood is for traders that know even less than the twits on StockTwits. I'm sure it's fine for investing but I'd bet that the vast majority of the people that use the app don't know what the difference is, just like StockTwits.
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No it wasn't robin hood, it was just basic rates charged by another firm. I figured robin hood is going to charge the industry standard. But that 2.4 % interest rate is being charged daily on those loans so that's even scarier.
Uh, I think you don't understand how compounding works. It's not 2.4% a day. Do you know anything about finance?
>IB accrues interest on a daily basis and posts actual interest monthly on the third business day of the following month.
from investopedia
>Interest accrues on loans, such as a mortgage, or on savings accounts and investments. Daily accrual means interest amounts are added to the account balance every day. Interest can accrue on any time schedule; common periods include daily, monthly and annually
it would be different if the rates were annual percentage rates, but your site doesn't specify that.
no I don't know anything about finance but I got google.
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I think the bigger problem is the erosion of the distinction between "investor" and "speculator", which is often unclear for novices entering the market (for whom Robinhood is significantly lowering the barrier for). Robinhood provides the firing range and a gun but no safety instructions. So I'm willing to bet you view this app very differently than someone who finds it on the App Store in a spur of the moment entic…
But even if you pay the $9-$15 for their Gold account, you still can only get on margin the amount of capital you have in the account max ie: if you deposit $5 and have $5 of cash on hand in your robinhood, but own ~$1200 of stocks, you can use https://support.robinhood.com/hc/en-us/articles/213262686-Ro... Note that I am a robinhood user and do not use gold or any margin investing. I use it for speculation for long…
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Uh, I think you don't understand how compounding works. It's not 2.4% a day. Do you know anything about finance?
from the link >IB accrues interest on a daily basis and posts actual interest monthly on the third business day of the following month. from investopedia >Interest accrues on loans, such as a mortgage, or on savings accounts and investments. Daily accrual means interest amounts are added to the account balance every day. Interest can accrue on any time schedule; common periods include daily, monthly and annually it w…
You found the right terms but totally missed the meaning. Daily accrual means that your interest for that day is calculated daily. It doesn't mean the interest rate is 2.4% a day.
Did you even think about this logically? 2.4% a day would be 876% a year. That's obviously insane.