It doesn't matter WHY Robinhood halted trading
Ultimately it does not matter WHY Robinhood halted trading. The fact of the matter is that Robinhood (and some other brokerages) halted trading while some other brokerages did not. If Robinhood halted trading once, it can also halt trading again in the future. This reason alone is enough to convince me to move my portfolio out of Robinhood into a brokerage that did not halt trading. Even if Robinhood halted trading for a "legitimate" reason such as not having enough money, who knows how many other ticking time bombs exist in their system. If anything this points to Robinhood not being able to properly manage itself as well as other brokerages. Anyways my point is that I don't even bother reading about WHY Robinhood halted trading. Looking at the situation like a black box is sufficient for me to decide which brokerage to use in the future. #robinhood
If what they are saying is true then they should have halted trading for all stock not just for handful. And honestly if you don’t have enough money for the demand then you should not have a business in the first place. People trusted you with their money and investments. Action law suits are coming no doubt about that.
Exactly. Not having enough money and needing to suddenly borrow one billion dollars is very alarming to me. My understanding is that no other brokerages needed to suddenly borrow one billion dollars. Robinhood is worth around 11 billion dollars. If it needs to suddenly borrow around 10% of the company value, I am very concerned about other issues that might pop up in the future.
I think you just misunderstood. The wsb load is mostly rh, other brokerages will do exactly the same thing given the rocket high liability caused by clearing house requirements. It’s just because of the volume.
Why only halt buying but allow selling??? Whatever the reason was, this is a market manipulation.
https://stu2b50.dev/posts/why-robinhood-d3580b this answers your question
"These brokers halted buys of GME Robinhood Webull M1 Finance Public E-Trade While others only halted options Interactive TDA Schwab Tradeing212" This highlights the fact that there is a very real risk when using a young brokerage. The only advantage Robinhood has over the TDA for example is the UI, but that is no longer worth it for me given this risk.
Already moved all of my holding to fidelity.
It makes a difference for my decision. If Robinhood fucked their customers on purpose I'd want to move for sure. If not, I think I'll keep using them for my small speculative trades. I can fall back to Vanguard if necessary.
Robinhood shouldn't be anyone's primary brokerage. I like robinhood's app a lot and it is miles better than almost any traditional brokerage. Also getting level 3 option trading permissions takes only a few minutes to setup. But as you have mentioned, this is not the first time robinhood had issues. They went down a while ago completely during trading hours. Now they do not have enough liquidity to cover their margin call. For myself I have 3 brokerages. Fidelity where my work does rsu and 401k and I put my long term serious portfolio, merrill lynch so that I can preferred rewards on BoA credit cards(4-5% cashback with no annual fee) and robinhood for my option gambling with my play money.
They did briefly stopped GME trading
Aren't the clearing houses the ones who should be investigated
“Anyways my point is that I don't even bother reading about WHY Robinhood halted trading. “ shows how rational op is
Which brokerage are you looking to shift to?