What’s the future of Robinhood?

Oracle
ummmm!

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ummmm!
Oct 1, 2019 20 Comments

Schwab moving to zero brokerage model. Interactive brokers already launched a zero brokerage model.

Will Robinhood sustain?

https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/charles-schwab-cutting-brokerage-fees-190948237.html

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  • What blows my mind here is Schwab trades have always been free, you just had to ask. 100m/quarter means a ton of people were too lazy to ask!?
    Oct 1, 2019 4
    • Oracle
      ummmm!

      Go to company page Oracle

      ummmm!
      OP
      One thing I hated about RH was I couldn’t decide which lot of shares to sell. It was always FIFO. With Schwab, I can choose what lot to sell?
      Oct 1, 2019
    • Absolutely, schwab is a real broker not a ui on top of an apex account. You can choose any method or even specific shares from specific lots.
      Oct 2, 2019
  • You guys are looking at this too close to see a bigger picture. Here is the deal: Schwab and the rest are big lumbering giants that will always be playing catch-up to Robinhood. For RH to succeed, it has to be more than commission free trades. This is not a winner take all market.

    Robinhood has a bright future ahead as long as they keep innovating and focusing on the customer.
    Oct 2, 2019 1
  • Amazon
    real bezos

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    real bezos
    Robinhood still has a lot of problems to solve. Robinhood is just for starters to get into investments. For active trading and investing amounts greater than $50k, many would prefer services like CS or Fidelity.

    So I guess this means Robinhood is going to have some tough competition, than before.

    Apart from that, it means nothing.
    Oct 1, 2019 1
    • Oracle
      ummmm!

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      ummmm!
      OP
      If people had a choice between CS and RH, most would hands down choose CS. RH would just lose that part of customer base.

      Their unique essence is gone.
      Oct 1, 2019
  • Facebook
    Майкл

    Go to company page Facebook

    Майкл
    Robinhood is not FDIC insured, whereas Schwab is, so you have no guarantee of getting your cash (note: not talking about stocks) back if Robinhood goes under.
    Oct 2, 2019 3
    • Facebook
      Майкл

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      Майкл
      Right, I’m referring to the cash you have in your RH account, e.g. from selling, not the stocks/bonds/etc.
      Oct 2, 2019
    • Robinhood
      xQwR50

      Go to company page Robinhood

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      Facebook
       xQwR50
      $250,000 in cash is insured in Robinhood under SIPC. It's industry standard, and also the same protection you have for assets under a Schwab brokerage account (unless your uninvested cash is getting swept to a bank, in which case FDIC would apply instead).
      Oct 2, 2019
  • I would rather use Robinhood than fueling the wall Street establishments. What would happen to the stocks if Robinhood collapses?
    Oct 1, 2019 2
    • Amazon
      real bezos

      Go to company page Amazon

      real bezos
      Nothing. Stocks are registered at SEC. So even if Robinhood crashes, you could still get your stocks back by filing your request to SEC. You are not buying Robinhood owned stocks, remember that.

      Of course, you’d have the hassle to go through all of it.
      Oct 1, 2019
    • I kinda assumed that. Plus I'm pretty sure if such a situation arises, it won't be a meltdown on a single day. They would give notice on how long before they shut down. Then I could move the stocks to a new brokerage just like I do today.
      Oct 1, 2019