robinhood for stock trading

[shalab]

Has anyone tried this and have any feedback? Allows for zero cost stock trading...

 

https://www.robinhood.com/

 

[beerbaron]

Remember, if someone gives you something for free you are the product. I would not trust a free broker as he would likely sell my order data to HFT, it might end up costing you much more than the 5-10$ commissions.

 

BeerBaron

[Hielko]

Remember, if someone gives you something for free you are the product. I would not trust a free broker as he would likely sell my order data to HFT, it might end up costing you much more than the 5-10$ commissions.

 

BeerBaron

Most brokers that charge $5+ in commissions also sell your order data... I think IB is one of the few brokers that doesn't sell your order data, and there you can actually do most trades for less than $1.

[benbuffett]

I have had  an account with them for just a little over a year and have been pleased. Very easy to use and move money to and from bank account. Their gold account which is their version of a margin account charges flat monthly fee. Their cash account is free. Both account types have FREE trading.

 

[fareastwarriors]

The Inside Story Of Robinhood’s Billionaire Founders, Option Kid Cowboys And The Wall Street Sharks That Feed On Them

 

 

https://www.forbes.com/sites/jeffkauflin/2020/08/19/the-inside-story-of-robinhoods-billionaire-founders-option-kid-cowboys-and-the-wall-street-sharks-that-feed-on-them/#33c875d6268d

[rkbabang]

I get free stock trades on Fidelity.  I'm not sure if there is a minimum balance or if they are always free.  Trading options is not free however.

 

[Castanza]

Does anyone have an reasons not to use Robinhood besides...

 

- it's limited on markets and some equities

- it has crashed multiple times this past year

- options detail and charts aren't good

 

Besides that, if you're not holding any precarious positions that could screw you in the event of a crash then why not?

[fareastwarriors]

I use Robinhood because it's so easy. I only do small fun trades on it though.

The bigger positions are at Interactive. Need those cheap margin rates!

[WayWardCloud]

I honestly don't care if my order flow is being sold but

 

1.I don't trust Robinhood to be nearly as solid as a major broker in case of extraordinary events so no way I'm parking any substantial amount of money with them.

2.Interactive Brokers' Portfolio margin is unmatched.

3.Ethically, I don't like to be associated with people whose entire business plan is to take advantage of idiots gambling away their life savings.

[Castanza]

Robinhood to lower margin rates from 5% to 2.5%

[fareastwarriors]

Robinhood to lower margin rates from 5% to 2.5%

 

That's a solid rate. Leverage to the moon!

[Gregmal]

If nothing else hopefully the margin rate becomes a race to 0 as well.

[bizaro86]

Robinhood to lower margin rates from 5% to 2.5%

 

That's a solid rate. Leverage to the moon!

 

But can you get 7:1 margin on a portfolio of OTM calls on SPACs?

[fareastwarriors]

Robinhood aims to allow users to buy into IPOs

 

https://www.reuters.com/article/us-robinhood-ipo-distribution-exclusive/exclusive-robinhood-aims-to-allow-users-to-buy-into-ipos-sources-idUSKBN2BH36G