Given that now Schwab, TD Ameritrade, IB all slash its commissions/fees for stock trading, how would that impact Robinhood? Is RH also going to target at wealthy investors vs only beginners?
that's the endgame for companies like this, no moat, easy to copy
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UX in RH is nice but not enough anymore... Game over for them with$0 competition
RH is Dead on water. Props to them for bringing down the rest of the market to $0 commission :)
My hypothesis is that as long as they have valid differentiation to attract customers in a time window, and they can keep retain customers through continuous innovation, then it’s fine. I don’t think the millennials will switch to traditional brokers now because they also offer zero commissions. The platform should be sticky. It just make customer acquisition harder (esp to convert existing ones from other platforms)
Are you saying that millenials are dumb and cant tell robinhood is trash?
Yes
They still haven't approved my account after almost a year. Future? Whay future?
RH is going to be fine. The older players are too slow to catch up with RH’s great UI/UX and pace of innovation. Like Ford, GM and Chrysler with Tesla. Tesla people are maniacs working 80 hours a week and they hire some of the best engineers hanging on to their visionary leader’s every word. That’s why you see hardly any Bolts and instead Model 3s everywhere (at least in the Bay Area).
Is UIUX enough to be an edge given the horrible lags and jankyness of the app? What innovation do they have besides free trading?
You’re saying RH has lags and jankiness? That’s not been my experience. It’s miles ahead of any other trading app. But yeah, UI/UX matters a lot. That’s basically Apple’s entire business model. Functionality is the same or less, but so much easier to get stuff done.