"Complexity is not the measure of excellence. That's how promotion works sadly but it should not be how things are rewarded." * Summary of responses: 60% of poll participants use Robinhood. There is a reason why everyone else is copying RH. If usecase is sufficient, RH is best. Below is the summary of all respondents who have opinions. 1. [Valid] "Have been using another trader for 20 years. No need to move to RH." 2. [Some what valid] "High frequency, high volume, high research based traders need more sophisticated tools and complex trading schemes." Though RH gold can provide it IMO. 3. [Borderline valid] "Outages scare me." March outages happened at all online brokers due to volume. Seems like they are improving faster than others. https://www.yahoo.com/now/robinhood-stays-up-as-big-brokerages-go-down-212512740.html 4. [Some what valid??] "Not good customer support." I never needed it and it seems like they are ramping up quickly?? 5. [Not valid] "RH sells order flows." But all retail traders sells order flow. RH terms and conditions say they try to execute at best price. 6. [Not valid] "Because of SEC settlements." Don't understand why people dont read the settlements but just headlines. 7. [Ahem] "Haters gonna hate, potatoes gonna potate". 8. [Most invalid opinion] Just because I heard it from folks in group 7. * I just don't understand the hate on Blind against Robinhood and would like to understand more. The logic that Fidelity and Charles Schwab are more trust worthy cause they are the "old" players is just hypocritical logic from Blinders, most of whom are tech people from disruptive companies. I love Robinhood. It's product is simple, sleek, covers all my usecases and really democratized the investing. Before it, I never even thought of investing but I started using RH in 2016, invested thoughtfully and long term. Sold all holdings for mortgage down payment with 30K return from Robinhood, started buying things again thoughtfully and am up 50K in 2 years including DRIP and recurring investments. It really democratized investing and I open it everyday for reading news too. I never had to talk to their customer service ever (and frankly who does in the age of e-commerce & neobanks). All old players, used to and still do, make money from order flow revenue, every single one of them. Robinhood changed the game and disrupted their "commission revenue" which those old guards don't like. Hence everytime a small thing goes wrong, things get amplified for Robinhood. Just like Tesla. I don't mind paying a few cents to get savings on commission to any brokerage. It's a business not a charity. I hate opening my Vanguard (401k) & Morgan Stanley (RSUs) to check on them. It's just so complex experience, looks like a NASA admin's console. Blinders who hate Robinhood, care to explain why don't your like RH just for me to understand? And what would you prefer? What usecase? #robinhood #fidelity #personalfinance #investments #wallstreet #finance #stock #stockmarket
Wait until you have hit an issue with your investment and you keep reaching them over email and without knowing when they would reply back. Other brokers actually have a support person you can reach out with a call away. This is enough for me to shit on robinhood
Care to explain what kind of issues you had? I see that they are expanding their customer care team. Learning and growing should be in our mind set no? With that logic, you can shit on Hadoop products because Oracle had good customer support -_- Seriously Qubole?
This is the argument - trust that my money is safe. While robinhood has a slick ui that's easy to use and gamble some money with, I'd prefer someone that can be trusted with actual physical presence and support for the bulk of my money.
How does the Commission Revenue for Robinhood work? I still don't understand how they make money
Market makers, such as Citadel Securities or Virtu, pay e-brokers like Robinhood, E-Trade, Schwab for the right to execute customer trades. The broker is then paid a small fee for the shares that are routed. It's essentially taking a few pennies on your order rather than charging you $5.99 per trade.
Thanks for the explanation. So Robinhood make money per share per trade, instead of, traditionally, a set price per trade? In that case, Robinhood is better for low volune higher frequency trade? Some one should do a study on where the breakpoint is that make s one service more financially favorable than the other.
Wait till you run into Robinhood’s absolute garbage of a fill rate and then you will realize what’s the hate for. If you haven’t run into this yet then you are probably a LT stocks trader with low volume. People who deal with swing trading and options dont give a fuck about easy UI, UX can be learnt in 2 days, but a missed limit fill can cause you thousands in loss.
Playing devil's advocate here: as a younger company, RH probably focuses more on customer acquisition than customer retention. By the end of their hypergrowth period, they probably will pivot to focus on fill rate and other customers support services.
Agree and that is 0.01% of high knowledge/high risk/high volume traders. Although I do think for my LT orders (usually in order of $5k in trade) have been executed at the price I wanted exactly so may be you are a really high worth individual. Agree with Intuit too.
Why isn’t TD Ameritrade / thinkorswim listed here? Their apps are nice to use.
My bad Capital One. Seems can't edit poll now. I have used TD though once, got same feeling as Fidelity experience though.
Robinhood is great, but I still have trouble trusting them with a large amount of my net worth. Fine for my itchy fingers and side trading account.
Well anyone do have to earn that, I agree. If it helps from my experience, I have invested in total $200K on RH (max holding $80k currently and growing with recurring & one time investments here and there).
Yeah agree same here went from 30k to 60k . So like 100 - 200k is kinda fine. But I wont put like $1m on there where you mostly hold stable bogleheads style portfolios.
Because idiots here like to play "I'm Warren Buffet" with day trading options and think they lost money because one trade took a little bit longer, or one day in a year there was an outage. And they have the explanation of "it is not established" or "they sell your trades" so it all makes sense to them. Reality is other brokers suck more, and they are idiots
I've never used robinhood, but from what I've read about it I don't see any complelling reason to move all my money from my 20 year old Schwab account.
Thanks for the answer. Yeah may be for your case it is right thing to do. Still you don't hate RH though which is good to know. May I ask would you use RH for new trades? I understand if you have grown accustomed to Schwab experience. Just wanted to know how open are folks to try new things after 20years of something.
yeah I don't have first hand experience with it say hate. Just never had the urge to use it. Though those articles of hack accounts and nobody to call or even a response from robinhood for weeks doesn't give me a warm and fuzzy feeling. I don't have to call customer support often but when I have in the past with schwab I was talking to somebody within 5 minutes helping me with me problem. This a useful person too and level 1 support like at comcast where they are reading off a script. Probably wouldn't do new trades as I like being see my portfolio I one spot. On schwab I have my 401k, roth ira, individual account, and a checking account its easy to just move money around and have it available instantly. I use their free desktop trading software and can see detail information on ask/bids to really see what's going on. I see no reason to move unless there is a compelling reason and I just haven't seen it. Maybe in the future there would be. Money I invest with is separate than my everyday living money. So I don't need instant access to any of it. All my trades on schwab are calculated and with intent, not on a whim.
A few reasons that come to mind: - Robinhood has been sanctioned a few times for dubious or illegal practices. Examples: surreptitiously selling customer order flow (resulting in $65M SEC settlement), or fraudulently claiming SIPC insurance on checking accounts. - the app is highly gamified (bright colors, rotating numbers, animations), and in my opinion promotes gambling. Some may say they are trying to make investing exciting, but I don't think they provide enough context for the user to understand what kinds of risks they are taking. Essentially I think they are preying on novice investors the same way as a casino would prey on those with gambling addiction. - personally I don't like the app very much. It doesn't give me enough information or tools to make good decisions, and the interactions are awkward. I feel like I'm using a children's version of a trading program
Exactly my point. Just because it's simple, you feel you are not doing much eh? Promotion mentality :D Read about Robinhoood's fine. They paid for not disclosing order flow practice before 2018. How many startups start disrupting first, learn and improve? Aren't you an employee of one? I think the high risk philosophy you are taking about isn't valid. Lyft made it easy to call taxi, does it mean people just keep on calling it for no reason? Weren't there phone taxi company before? Regarding gambling, who is labelling all RH traders gamblers? Isn't there Draftking for them to go and gamble on random things if they really wanted to do so?
Lyft , what trading programs do you use and for what reasons/tools ? Will be helpful for others to know
1 thing you would want to consider when your portfolio reaches > 200k is the insurance coverage that your broker provides. With Robinhood its much lower than other legacy brokers.
Thanks Wayfair. That is good to know. Never thought about this (but it doesn't remotely affect me as of now thought). I googled and saw this on Robinhood's terms and condition. "Robinhood Financial LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash)." How much insurance does legacy brokers give? any idea?
All brokerage accounts including RH, Fiedilty, Schwab, etc are covered by SIPC which has 500k limit. Wayfair is wrong.
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Robinhood is a good app. Definitely better UX than other investing platforms. I think the hate comes from the association of Robinhood to stupid investing like wsb or these morons dumping all their money into bad investments thinking they’re gonna hit a lotto. Bad investors could’ve been using any platform but like you said Robinhood made it easy for anyone to invest. Even people who shouldn’t be
Good answer Airtable. But who decided who should/shouldn't? And who says just because stocks are going up they are bad? Even hedge fund managers now agree that they missed the pulse during the big sell-off and rebound in March and commend RH investors because they are long. Bad people can go to Fidely/Schwab anytime right? Nothing stopping them. I made money on stocks like Roku, invested at $19 (they IPOed at 38). My friend told me I am stupid and now its at $332 because I was long on it. I understood and loved the Roku product hence invested.
I don’t mean that there are some people who should be excluded from being allowed to trade. Just that there is now a large number of people trading without doing any real research and treating it like an online casino. Of course even if they in my opinion should not be trading for the sake of being more responsible with their money, they are more than welcome to.