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Started By
Message
Robin Hood are you all in?
Posted on 12/22/14 at 11:43 pm
Posted on 12/22/14 at 11:43 pm
I don't post on this board much but there seems to be a big push for the Robinhood app. Does it not seem strange that some are on a waiting list of 400,000 + but you all of a sudden signed up and have three free invites to pass along.
In one of the many threads, Broke summed it up about you putting in a sell or buy order and they sell or buy at a different price and make their money that way. I'm not sure that's much different than the big box brokers.
My big concern is who is this "Broker come lately". It seems they have created a big buzz and people are trying to jump in. I've not researched this company and they may be legit but when there is a lot of hype I have a lot of concern. Bernie M was hard to get; until it all crashed around him.
I'm not in the field/business but am very skeptical. What do the professionals think?
In one of the many threads, Broke summed it up about you putting in a sell or buy order and they sell or buy at a different price and make their money that way. I'm not sure that's much different than the big box brokers.
My big concern is who is this "Broker come lately". It seems they have created a big buzz and people are trying to jump in. I've not researched this company and they may be legit but when there is a lot of hype I have a lot of concern. Bernie M was hard to get; until it all crashed around him.
I'm not in the field/business but am very skeptical. What do the professionals think?
7
Posted on 12/23/14 at 1:53 am to Geaux-2-L-O-Miss
This is the future of investing. No need for the middle man, ie the broker.
Posted on 12/23/14 at 9:29 am to Geaux-2-L-O-Miss
They make money on float & interest. You can also just use a limit order instead of a market order, so you concerns aren't really valid re: price of trade execution.
Posted on 12/23/14 at 9:39 am to Geaux-2-L-O-Miss
I don't know much about them, but my big question is WHO HOLDS THE STOCKS?
Anybody know how that works?
Anybody know how that works?
Posted on 12/23/14 at 9:42 am to Blakely Bimbo
quote:
Blakely Bimbo
I ask in one of the other "Robin Hood" threads how dividend payments work. That was one question I had.
Posted on 12/23/14 at 9:43 am to Geaux-2-L-O-Miss
quote:
I've not researched this company
quote:
Broke summed it up about you putting in a sell or buy order and they sell or buy at a different price
Not traded in real time. More of a trader Execution flaw.
Posted on 12/23/14 at 11:34 am to Geaux-2-L-O-Miss
The RobinHood FAQ answers a lot of questions.
They also raised a 13 million series A from some very notable investors:
Ribbit Capital
Google Ventures
Andreessen Horrowitz
Index Ventures
The best investor out of the whole bunch is Snoop Dogg.
LINK #
They also raised a 13 million series A from some very notable investors:
Ribbit Capital
Google Ventures
Andreessen Horrowitz
Index Ventures
The best investor out of the whole bunch is Snoop Dogg.
LINK #
Posted on 12/23/14 at 12:08 pm to Geaux-2-L-O-Miss
The whole "invitation" thing is simply buzz marketing. Second, it allows them to place controls on how fast expansion occurs. I would not read anything into it.
Were the Madoff accounts protected by SIPC? My understanding was they they were not. I think with this Robin Hood, you are simply buying shares of stocks or funds, so you should be able to determine what it is you have. At the same time, I would not put tons of money into it for a while. Start slow. They don't even accept ACAT yet.
With electronic trading systems, the processing cost of trades can't be that much. I would imagine, if they have not already, they will put in some limitations against day traders. Most people buy and hold and that will probably be true for these account holders.
I do think this is going to hasten the demise of the old-school commission based stockbroker. At the higher ends of the market, you already have fee-based accounts and planning fees. Now at the lower end, you'll have this.
Were the Madoff accounts protected by SIPC? My understanding was they they were not. I think with this Robin Hood, you are simply buying shares of stocks or funds, so you should be able to determine what it is you have. At the same time, I would not put tons of money into it for a while. Start slow. They don't even accept ACAT yet.
With electronic trading systems, the processing cost of trades can't be that much. I would imagine, if they have not already, they will put in some limitations against day traders. Most people buy and hold and that will probably be true for these account holders.
I do think this is going to hasten the demise of the old-school commission based stockbroker. At the higher ends of the market, you already have fee-based accounts and planning fees. Now at the lower end, you'll have this.
Posted on 12/23/14 at 12:16 pm to CardboardTable
If one executes a trade, is one buying a real stock share, or is this some type of a synthetic product?
In whose name is the stock held?
In whose name is the stock held?
Posted on 12/23/14 at 1:22 pm to Blakely Bimbo
quote:
If one executes a trade, is one buying a real stock share, or is this some type of a synthetic product?
In whose name is the stock held?
you are the owner of the shares, although they are held in street name, the same as with any other broker. it is no different than a Schwab or Scotttrade account.
Posted on 12/23/14 at 8:39 pm to Geaux-2-L-O-Miss
Agree with the OP. I don't get the excitement. I'll give it 5 years.
Posted on 12/23/14 at 8:53 pm to C
quote:
Agree with the OP. I don't get the excitement. I'll give it 5 years.
It's either gonna legitimately establish itself or fizzle out much sooner than that.
Posted on 12/23/14 at 9:12 pm to LSUFanHouston
I may be 110% wrong on this BUT I am starting to smell something like...bitcoins.
Paging LSURuskie
Paging LSURuskie
Posted on 12/24/14 at 1:13 am to Blakely Bimbo
quote:
If one executes a trade, is one buying a real stock share, or is this some type of a synthetic product?
In whose name is the stock held?
From the faq:
quote:
You can use Robinhood to invest in publicly-traded companies and exchange-traded funds listed on U.S. exchanges. This includes well over 5,000 securities. We plan on supporting additional financial products in the future.
And the assets purchased through RobinHood are in your name. They use a company called Apex. It is Robinhood’s clearing firm. This means that Apex handles trade confirmation, settlement, and securities delivery for Robinhood. Other online brokerages such as Wealthfront (2B in assets under management) use Apex. Also since Robinhood Financial is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash), it's safe to say you have some protection.
Hope this helps, still would suggest looking over it for yourself before committing. They are a registered broker-dealer just like Etrade and Scottrade.
Happy Investing
Posted on 12/24/14 at 8:41 am to Y.A. Tittle
quote:
It's either gonna legitimately establish itself or fizzle out much sooner than that.
i'm not sure what there is to get. it's stock trades with no commission. you're either excited by that thought or you're not. there aren't a lot of frills with the app, just a simple stock and etf trader. i wouldn't replace my broker with the app, but i will use it to play around with some side money after my retirement accounts are funded. as noted in some of the other threads, it has some pretty serious financial backers that should keep it around for a while. nothing about this appears to be a fad or some fly by night operation
Posted on 12/24/14 at 9:40 am to lsujro
Because if it isn't executed in real time and you bought a significant number of shares wouldn't it be cheaper to pay a commission?
Posted on 12/24/14 at 10:10 am to Dooshay
quote:
Because if it isn't executed in real time and you bought a significant number of shares wouldn't it be cheaper to pay a commission?
i'm not sure what you mean it's not executed in real time. it is executed as fast as their servers allow, just like every other broker. any market order you place will be different than the price you see on the screen due to the delay in completing the order. that's how brokers operate. there is specialized high speed trading equipment for big time investors, but the common investor doesn't have access to that. i see no noticeable difference between Robinhood and TD Ameritrade
This post was edited on 12/24/14 at 10:11 am
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