I’m a Robinhood shareholder. The commission free trading emphasized in the first sentence is no big deal, as almost all trading is now commission free. Yes, some firms require minimum investments, but almost everyone in the US at least can trade commission free.
What makes Robinhood attractive–some might say addictive–is the fun and game-like way the platform operated. This is a bit like Jewel and other vape companies introducing flavors that might appeal to younger clients and potential clients. If the website appeals to younger and non-traditional clients, so be it. If they draw new in new clients to learn about the financial markets, that, mostly, is a good thing.
But if the don’t charge for trades, they must make money somehow. Is it on “free cash,” getting interest on cash held in accounts? Options trading, which is often lucrative for the broker-dealer, or payments for “order flow,” where Robinhood (and virtually all broker dealers) receive cash when feeding business to a particular client? As long as the best interests of Robinhood’s clients are protected, this is simply business as usual.
Let’s hope that it was never Robinhood’s goal to smash capitalism, smash the patriarchy, destroy America–you would be confusing Robinhood with BLM. Creative and fun? Yes. Revolutionary? No. Robinhood, for now, offers a colorful and unique trading platform to its clients, and it will succeed or fail based on market forces, as it should.
They will succeed or fail based on market forces, that is, as long as the government does not bail them out when a ‘crunch’ comes, with the reason for bailing them out because they ‘too big to fail’!
Too Big To Fail is so 2008, now it is the entire Stock Market is ‘Too Big To Fail’ collectively. USA currently pumps 120 BILLION into bonds and Mortgage Backed Securities every month, as QE Infinity, to keep the stock market climbing to insane levels, and hold interests to Zero, and to create inflation To melt away the National, and corporate, debt. That all this is destroying the Middle Class, and Working Class is no matter to them.
Daniel DeMartin-Booth says fully 20% of USA companies are ‘Zombies’! (companies which are unprofitable, but instead of letting them die they are pumped with free money to save the jobs and equity market. Zombies because they are walking dead), and once the free money stops they will keel over. Now they are such a huge thing they will take down the economy if allowed to die, and so will keep getting their stimulus…
If they are selling order flow to HFT’s they are definitely not acting in the best interests of their client. HFT’s front load their trades onto the order flow so they are guaranteed to profit at the expense of their clients.
This meme stock craziness was created by the mad USA government ‘helicoptering’ out Trillions of $ to people who had no need for the money, to ‘Stimulate’ the economy. The young ones looked for something to do with it – and there was Robinhood….
This was taking investing to Speculating, and then to gambling.
But the players felt ‘why not’, it was the ‘House Money’ they were gambling with, so go for the high risk/high gain things as it was not enough to matter, but enough to be something if a gamble paid off.
(A great many others just paid down debt with the ‘Stimulus $’, and so – gambled on the stock market and Crypto – or debt paid down = NO stimulus resulted – at a cost of Trillions. Some say the stimulus of 20 – 21 resulted in creating 10 cents for every Dollar spent, for a loss of 90 cents, and so in reality ended up just doubling the wealth of the very wealthy, and increasing National debt past the breaking point, and doing great harm by the huge inflation it spawned.)
I’m a Robinhood shareholder. The commission free trading emphasized in the first sentence is no big deal, as almost all trading is now commission free. Yes, some firms require minimum investments, but almost everyone in the US at least can trade commission free.
What makes Robinhood attractive–some might say addictive–is the fun and game-like way the platform operated. This is a bit like Jewel and other vape companies introducing flavors that might appeal to younger clients and potential clients. If the website appeals to younger and non-traditional clients, so be it. If they draw new in new clients to learn about the financial markets, that, mostly, is a good thing.
But if the don’t charge for trades, they must make money somehow. Is it on “free cash,” getting interest on cash held in accounts? Options trading, which is often lucrative for the broker-dealer, or payments for “order flow,” where Robinhood (and virtually all broker dealers) receive cash when feeding business to a particular client? As long as the best interests of Robinhood’s clients are protected, this is simply business as usual.
Let’s hope that it was never Robinhood’s goal to smash capitalism, smash the patriarchy, destroy America–you would be confusing Robinhood with BLM. Creative and fun? Yes. Revolutionary? No. Robinhood, for now, offers a colorful and unique trading platform to its clients, and it will succeed or fail based on market forces, as it should.
They will succeed or fail based on market forces, that is, as long as the government does not bail them out when a ‘crunch’ comes, with the reason for bailing them out because they ‘too big to fail’!
Completely agree. Too big to fail is an obscene concept. And companies shouldn’t be allowed to grow so big that they become, in some eyes, TBTF.
Too Big To Fail is so 2008, now it is the entire Stock Market is ‘Too Big To Fail’ collectively. USA currently pumps 120 BILLION into bonds and Mortgage Backed Securities every month, as QE Infinity, to keep the stock market climbing to insane levels, and hold interests to Zero, and to create inflation To melt away the National, and corporate, debt. That all this is destroying the Middle Class, and Working Class is no matter to them.
Daniel DeMartin-Booth says fully 20% of USA companies are ‘Zombies’! (companies which are unprofitable, but instead of letting them die they are pumped with free money to save the jobs and equity market. Zombies because they are walking dead), and once the free money stops they will keel over. Now they are such a huge thing they will take down the economy if allowed to die, and so will keep getting their stimulus…
If they are selling order flow to HFT’s they are definitely not acting in the best interests of their client. HFT’s front load their trades onto the order flow so they are guaranteed to profit at the expense of their clients.
This meme stock craziness was created by the mad USA government ‘helicoptering’ out Trillions of $ to people who had no need for the money, to ‘Stimulate’ the economy. The young ones looked for something to do with it – and there was Robinhood….
This was taking investing to Speculating, and then to gambling.
But the players felt ‘why not’, it was the ‘House Money’ they were gambling with, so go for the high risk/high gain things as it was not enough to matter, but enough to be something if a gamble paid off.
(A great many others just paid down debt with the ‘Stimulus $’, and so – gambled on the stock market and Crypto – or debt paid down = NO stimulus resulted – at a cost of Trillions. Some say the stimulus of 20 – 21 resulted in creating 10 cents for every Dollar spent, for a loss of 90 cents, and so in reality ended up just doubling the wealth of the very wealthy, and increasing National debt past the breaking point, and doing great harm by the huge inflation it spawned.)