Robinhood cuts losses after transaction revenue drops • Hacker News Board

Re: Robinhood cuts losses after transaction revenue drops

#71

Post by guelo » Fri, Nov 04, 2022, 1:20 AM UTC

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.

The unemployment rate was 3.5% months ago, there is a lag in government reporting. The rate can also vary greatly by industry, a laidoff software engineer is not going to be looking for McDonalds jobs.

Re: Robinhood cuts losses after transaction revenue drops

#72

Post by schrodinger » Fri, Nov 04, 2022, 1:20 AM UTC

danuker wrote: post #69

eloff wrote: post #66

Earlier quoted context omitted.

With stocks, you're purchasing future profits. That puts a floor under things. With crypto you're purchasing??? There's no floor. It has limited utility.

The floor denominated in dollars can still go to zero. The utility of Bitcoin is its global payment network.

The floor of dollars is the might of the US military. If you haven’t noticed it’s prettttty strong these days.

Re: Robinhood cuts losses after transaction revenue drops

#73

Post by drnonsense42 » Fri, Nov 04, 2022, 1:23 AM UTC

danuker wrote: post #69

eloff wrote: post #66

Earlier quoted context omitted.

With stocks, you're purchasing future profits. That puts a floor under things. With crypto you're purchasing??? There's no floor. It has limited utility.

The floor denominated in dollars can still go to zero. The utility of Bitcoin is its global payment network.

But, the floor of profits for a company is not denominated in dollars. It is shit you put in your mouth and eat or a useful product like a refrigerator which you can put things which allow you to not die.

Bitcoin, on the other hand, is some electricity, and arguably a waste of it.

Re: Robinhood cuts losses after transaction revenue drops

#74

Post by wcoenen » Fri, Nov 04, 2022, 1:24 AM UTC

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.

I don't think Robinhood had any choice there. Trades don't settle instantly. Robinhood needs to post collateral with the Depository Trust & Clearing Corporation while settlement is pending, and the required collateral goes up with volatility. During the "GameStop debacle" they had to raise billions of USD in additional capital for this purpose, so no wonder they had to hit the brakes.

Re: Robinhood cuts losses after transaction revenue drops

#75

Post by this_user » Fri, Nov 04, 2022, 1:24 AM UTC

danuker wrote: post #69

eloff wrote: post #66

Earlier quoted context omitted.

With stocks, you're purchasing future profits. That puts a floor under things. With crypto you're purchasing??? There's no floor. It has limited utility.

The floor denominated in dollars can still go to zero. The utility of Bitcoin is its global payment network.

> The utility of Bitcoin is its global payment network.

So zero then?

Re: Robinhood cuts losses after transaction revenue drops

#76

Post by SamReidHughes » Fri, Nov 04, 2022, 1:28 AM UTC

dig1 wrote: post #40

kylehotchkiss wrote: post #5

If 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 mo…

IBKR's phone app is miles ahead of Robinhood's or Fidelity's.

Re: Robinhood cuts losses after transaction revenue drops

#77

Post by hanoz » Fri, Nov 04, 2022, 1:29 AM UTC

twblalock wrote: post #61

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.

Stocks? Sure. But there is no reason crypto couldn’t go all the way to zero.

I daren't think of the number of stocks I've held which have gone all the way to zero over the years.

Re: Robinhood cuts losses after transaction revenue drops

#78

Post by SamReidHughes » Fri, Nov 04, 2022, 1:30 AM UTC

missedthecue wrote: post #20

system2 wrote: post #8

Earlier 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.

The thing about Robinhood seems to be fee-free options trading. I don't think any other broker does this

Let me say RH is fine, and you shouldn't be buying options unless you have a big margin of safety anyway. It depends on the exact order, but for me Fidelity has, in my typical use case, gotten better fills with price improvement than Robinhood has. It takes one penny of improvement to overcome the commission.

Re: Robinhood cuts losses after transaction revenue drops

#79

Post by eloff » Fri, Nov 04, 2022, 1:31 AM UTC

danuker wrote: post #69

eloff wrote: post #66

Earlier quoted context omitted.

With stocks, you're purchasing future profits. That puts a floor under things. With crypto you're purchasing??? There's no floor. It has limited utility.

The floor denominated in dollars can still go to zero. The utility of Bitcoin is its global payment network.

No, if dollars suffer hyperinflation, companies are still worth the present value of future cash flows. They'll suffer like everyone else in a tough environment, but they won't go to zero unless the company goes bankrupt. Bitcoin, on the other hand, has next to no utility and no profits. It can go to zero.

Re: Robinhood cuts losses after transaction revenue drops

#80

Post by SamReidHughes » Fri, Nov 04, 2022, 1:33 AM UTC

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.

Robinhood is perfectly trustworthy with your money. This is a completely nonsensical smear.