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Robinhood cuts losses after transaction revenue drops

wsj.com

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Re: Robinhood cuts losses after transaction revenue drops

#51

Post by conorcleary »

iepathos wrote: post #46
adoxyz wrote: post #2

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.

Ironically, it's probably best to buy stocks and crypto when they are in valleys like this rather than at peaks. The unemployment rate is still only 3.5% in the US, so anyone getting laid off is being hired back almost immediately with very little slack. The Fed would actually prefer to see higher unemployment around 6% to better manage inflation so they'll keep interest rates high until they see that happen.

Average down and buy the dip are real.

Re: Robinhood cuts losses after transaction revenue drops

#52

Post by acchow »

throwaway12245 wrote: post #50
artificialLimbs wrote: post #39

Earlier quoted context omitted.

Yep. My local credit union is offering 4.5% on an 18 month > $1,000 CD.

U.S. Inflation is 8.2%, though. :(

That's backwards looking tho. We don't know if inflation between Nov 2022 to Nov 2023 will be 8.2%.

Re: Robinhood cuts losses after transaction revenue drops

#53

Post by shahmeern »

njovin wrote: post #45
skymast wrote: post #25

Why would anyone trust a financial institution with their money when they have acted like Robinhood as acted? This is a fundamental question.

I closed my account with them during the GameStop debacle and never looked back. I wasn't trading GME but was appalled at their reaction.

what exactly were you appalled at?

Re: Robinhood cuts losses after transaction revenue drops

#54

Post by [deleted] »

artificialLimbs wrote: post #39
reducesuffering wrote: post #4

> 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.

[deleted]

Re: Robinhood cuts losses after transaction revenue drops

#55

Post by mey »

shahmeern wrote: post #53
njovin wrote: post #45

Earlier quoted context omitted.

I closed my account with them during the GameStop debacle and never looked back. I wasn't trading GME but was appalled at their reaction.

what exactly were you appalled at?

Not parent, but I assume it's something in relation to https://www.cnbc.com/2021/06/30/robinhood-to-pay-70-million-...

Re: Robinhood cuts losses after transaction revenue drops

#56

Post by junon »

shahmeern wrote: post #53
njovin wrote: post #45

Earlier quoted context omitted.

I closed my account with them during the GameStop debacle and never looked back. I wasn't trading GME but was appalled at their reaction.

what exactly were you appalled at?

They effectively told their users "you're being children, we know better than you".

Re: Robinhood cuts losses after transaction revenue drops

#57

Post by extesy »

dragontamer wrote: post #43
throwaway12245 wrote: post #18

Earlier quoted context omitted.

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.

Vanguard's got excellent funds and ETFs, but they're legendary in terms of having some of the worst customer support for their brokerage account. Schwab/TD Ameritrade on the other hand, has kinda bad ETFs but have really good customer service. Besides, you can buy Vanguard ETFs / Mutual Funds in your Schwab account. Go for customer service. There's some minor benefits in terms of how quickly you can enter / exit Vang…

I've been a Fidelity customer for 15+ years. Amazing customer service - very easy to reach humans and they were all experts at solving whatever problem I called them with.

Re: Robinhood cuts losses after transaction revenue drops

#58

Post by Retric »

notch656a wrote: post #48
iepathos wrote: post #46

Earlier quoted context omitted.

Ironically, it's probably best to buy stocks and crypto when they are in valleys like this rather than at peaks. The unemployment rate is still only 3.5% in the US, so anyone getting laid off is being hired back almost immediately with very little slack. The Fed would actually prefer to see higher unemployment around 6% to better manage inflation so they'll keep interest rates high until they see that happen.

Time that market.

You can cost dollar average without timing anything. Essentially you discover after the fact what was the best time to invest.

Which is surprisingly hard to pull off long term as most people are forced to take money out when they run into financial issues which then correlates with down markets.

Re: Robinhood cuts losses after transaction revenue drops

#59

Post by prasadjoglekar »

throwaway12245 wrote: post #18
kylehotchkiss wrote: post #5

If 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.

Fidelity, Schwab and Vanguard in that order. All 3 offer ETFs at $0 fees, and all have comparable index funds. I've found Fidelity's website to be the most usable, followed by Schwab. Vanguard had a dated, but simple and functional interface that they've recently revamped to be more slick but less usable.

Re: Robinhood cuts losses after transaction revenue drops

#60

Post by tnel77 »

LeafItAlone wrote: post #23
MattyMc wrote: post #7

I suspect that Robinhood's active user count will be highly correlated with market/crypto returns.

Interesting thought. Is Robinhood that common in the crypto world? I know they support it, but I would have guessed it was an “also” feature rather than a driver.

Now that Robinhood will let you send your crypto to a hardware wallet, it’s not a bad method for DCAing into a coin of your choice.
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