RobinHood is a company that has been focused in providing free stock trading to millions of people in the U.S. now wants you to create a checking and savings account with them and cut out the banks and all their costly fees. RobinHood is just an Iphone/Android app that allows you to trade stocks straight from your phone.
RobinHood takes high precautions to ensure that your stocks are safe with them and every RobinHood account is insured by the SIPC, up to $500,000($250,000 in cash). RobinHood was originally started by 2 college students that were tired of the old system where paying 5-10% of their entire stock trading portfolios per trade to companies like Scottrade, E-trade, Goldman Sachs, etc. was the norm for the industry.
RobinHood has since provided free stock trading to millions and about 2 years ago they were giving away 1 free stock to anyone who created an account with them. I'm not sure if this offer is still valid.
Robinhood is creating a checking & savings account where you'll be able to earn 3% on all the money in your checking and savings account every year. RobinHood is also going to offer no fees, and no commissions to get rid of all of these ridiculous fees that banks charge each year. They claim on their website that the checking and savings account will have no minimum balance, there will be no monthly fees and no overdraft fees either.
They also mention zero foreign fees. Further, they add that you will be able to access 75,000 free ATMs with the 5 largest banks combined, with the ability to search for the nearest ATM within the app. Lastly, Robinhood promises that you will be able to do all of this within the app to be able to invest, manage your money, deposit checks, and to be able to get 24/7 customer support with the Robinhood app. Downloading the latest version of the app will get you early access to this service.
'Free stock trading' . https://seekingalpha.com/article/4205379-robinhood-making-millions-selling-millennial-customers-high-frequency-traders
Absolutely horrible. First lesson of economics: there is no such thing as a free lunch. The analysis, reports, execution, trust and support you get from brokers is well worth trading fees in the long run. Thanks for spreading the news, they aren't Robin Hood. They are robbing the hood.
This is not an alternative to brokers. Most people cannot afford those.
This is an alternative to online trading apps that charge upwards of $10/trade--apps like eTrade, Tradeking, and many, many more.
As for the "advice" of brokers, it's been proven time and time again that no one can predict the market.
No one can predict the market but most people who can't afford a $10 fee shouldn't be trading single stocks anyways. You don't need the advice of a broker to buy low MER ETFs. Buying a few NYSE stocks is risky, it's better to just buy an index fund and put some bonds into your mix.
Online trading platforms are usually better than the apps, they provide access to analyst reports helping investors make more informed decisions. You can also buy bonds, ETFS, mutual funds, GICs, non-NYSE stocks, use trailing stops, and do a whole lot of other things which you can't do on Robinhood. The fact that you can't buy index funds and that they are selling your information to HFTs concerns me. Robinhood is turning an entire generation into gamblers (speculators) and exploiting them.
@hatu
robhinhood is big data trading app they sell data to big trading funds to frontrun their users trades why would you promote the use such a scam?
false
First off, please point me to who has predicted the market.
As for big data: the users utilizing the free platform have such a minute impact on the market that HFTs do not care for their data. Do you actually think Citadel wants to bypass a $75 trade? Or even 1,000 $75 trades?
The net daily volume generated through Robinhood is smaller than the average trade size of a trading desk at major firms.
depends on your definition of predicting a market
do you need trades with price points either side or calling bottom and tops or calling timeframes for price directions
if you want an example of the ability to analysis and predict markets.
My Bitcoin Profit From BTC/USD trades for 2017/2018 most of which were posted on steem if you need some verification
2017 + 400%
2018 + 780%
yes i wholly believe big data trading corps would utilize the trading data they buy from millions of users to front run markets short sell pump and dump etc
Robinhood has over 4 million users
https://www.investors.com/news/robinhood-app-has-more-customers-than-online-broker-etrade/
Article with details on Robinhood selling User Data to HFT firm
https://bitcoinist.com/no-such-thing-as-a-free-lunch-robinhood-user-info-sold/
You're right there is no such thing as a free lunch. RobinHood is still a very profitable company and they are taking advantage of customers in a somewhat secretive way. However, if your goal is just to buy one or two stocks to just get the stock trading experience, I would argue that they could provide a good user experience for that.
I agree, if you want to buy and hold small quantities of specific blue chips it's fine. If it's a $10 dollar fee that is preventing you from trading, you probably shouldn't be hand picking single equities anyways, the low MER ETF route is definitely more suitable and reasonable.
I see, I wasn't aware of this. Would you still consider using RobinHood knowing this? Unfortunately, corruption exists in nearly every company out there.
I think it's a good way to get your feet wet investing a share at a time if you're new. The threshold for the amount you are getting sold out by Robinhood is lower than you'd think. With any sort of size, paying $5 to E-Trade is probably cheaper, especially when using limit orders.
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Just FYI you're sitting at 100% VP. Would appreciate if you could vote this user that informed you and others of something they may not have known.
I believe I have gotten them near the right STU for minimum payout but would be a good gesture to help top them off so this informative comment gets a payout.
Thanks!
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I never use my voting power as much as I should. I don't believe I should always vote 100% though on comments because that would be like giving out nearly 50 cents to someone per comment--they would be rich in a month or 2. I think good comments and such deserve upvotes, but getting someone rich through upvotes on comments doesn't seem cool. Posting and delegating appear to be the 2 most valuable ways to interact with Steemit right now. Posting about important information or delegating to a good cause here.
Thanks for the reply and vote. It can be a challenge to consistently curate.
I always hate having a thoughtful comment on my blog not reach payout. (Not entirely sure if the cutoff is 0.02 SBD or $0.02 STU so I err on the side of caution with the latter)
Btw, I do use RH. My portfolio was looking pretty good on the tail end of the bullrun. Now... Not so much.
I've heard that they do sell data but how else would you get zero fees. Gotta be a trade off somewhere.
Anyways, another thing you may not know. (Don't worry. Not expecting a vote)
RH is supposed to be opening checking and savings with a 3% interest. They are anticipated some changes with federal interest rates or something like that IIRC.
Enjoy your weekend.
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I upvote the shit outta everything I interact with with my .025 cents. I must be doing it wrong.
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Well I think this comment is worth 100% upvote, so I will do that sometimes.
I actually wasn't aware that some of these comments aren't reaching payout. Ok, I understand that now. There is clearly a trade off to using RobinHood because they are still a very profitable company. I was aware about the checking and savings account, it looks like an interesting idea.
You got a 83.33% upvote from @sleeplesswhale courtesy of @isacoin!
Is this only for usa or asians also can enjoy trading in it
I believe it is only in the U.S. right now, and I'm not sure it will be available in other countries. The SIPC which aims to protect the financial assets of stock traders and more is located in Washington, D.C.
Yup its only usa but I love it been using it for the last year and a half now. Its nice not paying fees and transactions are rather fast. Plus they just released a early sign up to a debit/savings account which is looking good!
Yep with 3% interest, right? I may have to switch over if that is the case
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Very good post, the truth that you explained everything very well. in case it helps you to understand a little more how Robinhood App works, I leave a video in the following link:
Robinhood is great for anyone starting out. Other trading apps eat into the small guy's capital with fees and turn profitable trades into losses.
You're on fire with these consistently informative posts.
I'd like to get in touch with you; do you have Telegram?
Thanks, hatu I appreciate the support. RobinHood is great as you say for avoiding those stupid fees that some other companies try and charge. I am in need of your support here as I try and rebuild my reputation here over time. I have been called a scammer, but they still do not have any proof. Anyways, I appreciate your contribution here as well, and my current telegram account is @SlamAnderson. Thanks!
I'll be in touch soon.
Not sure why anyone is calling you a scammer. You're just providing information, and that's a positive thing.
Excellent way to get started in investing. In these tumultuous times, savings are necessary to maintain a life. Well Done. -Powman
https://thechenkinreport.com
Robinhood is awesome! Upvoted!
Its very unfortunate they are not providing their services to countries outside of US especially in countries where accessing trading services are limited. Like in Africa people have smartphones but trading on global stocks is a hustle.
eToro is more available than Robinhood in this communities.
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This sounds like a really good idea. But still have my reservations as far as the funds being secure. I don't know anything about the banking process but how would you think that the security of the actual really protect the funds?
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STOPThere seems to be some question as to whether or not it is insured. It does state so on their website but this article seems to question that.
https://techcrunch.com/2018/12/14/robinhood-insurance-sipc/?
yptr=yahoo
I do hope they clear this up soon!
Wonder what's gonna happen when some of these 'traders' lose their shirts in the next correction. I like the sounds of a 3% interest savings account though
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STOPTo support your work, I also upvoted your post!
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Yea, except it isn't FDIC insured.