What is the appeal of Robinhood

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Evergreen2022
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Re: What is the appeal of Robinhood

Post by Evergreen2022 »

Robinhood has the best app available IMO. I think people use it because it’s so simple to use. Granted I’ve had an account with them since 2017 because at the time I’m pretty sure they were the only brokerage offering zero-commission trades. You can buy your favorite Vanguard ETF’s, which is what I do.

As someone who has had TDAmeritrade to Schwab (for retirement) I like the Robinhood site far more than Schwab or TD. Granted, I probably wouldn’t push my luck with them at this point on a complicated retirement account issue. But a straight brokerage has been great.

To the “casino” point, there was confetti when you buy a stock. That’s it. I mean if you want to go down the rabbit hole of meme-stocks I guess you could do that on any brokerage.
yougotitdude
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Re: What is the appeal of Robinhood

Post by yougotitdude »

FIdelity used to have the standard offers (ie $2,500 for $1 million). When they went commission free, that reduced their marketing budget so you don't see the offers as often.
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Re: What is the appeal of Robinhood

Post by placeholder »

beyou wrote: Fri Mar 15, 2024 10:32 am Then why doesn't Fidelity advertise it ?
Because clearly people open accounts every day without them.
The problem is you started with a conclusion and want to warp all evidence to suit that when the fact is that transfer bonuses have been a long time strategy employed by many custodians over the years.
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beyou
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Re: What is the appeal of Robinhood

Post by beyou »

placeholder wrote: Fri Mar 15, 2024 5:31 pm
beyou wrote: Fri Mar 15, 2024 10:32 am Then why doesn't Fidelity advertise it ?
Because clearly people open accounts every day without them.
The problem is you started with a conclusion and want to warp all evidence to suit that when the fact is that transfer bonuses have been a long time strategy employed by many custodians over the years.
Same could be said of your argument.

First you need to understand the assertion/point or there is no reason to discuss the facts.

My point is that a bonus is a way to “buy business”. People on this site discuss a tiny handful of the thousands of brokers in the industry. Many pay zero or very tiny bonuses yet somehow still signup new clients. A handful are widely known, in part because if the signup bonuses. RH has to offer a better bonus because the do not offer a better platform. Some offer less, some offer none, why does RH have to offer so much ? Why could Fidelity get away with not advertising bonuses any longer ? There are reasons.
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Re: What is the appeal of Robinhood

Post by tj »

placeholder wrote: Fri Mar 15, 2024 2:05 am
beyou wrote: Thu Mar 14, 2024 10:46 pm
placeholder wrote: Thu Mar 14, 2024 8:04 pm Back in the day fidelity was a big bonus generator and I got thousands from them over the years and most major custodians have had bonus programs either in the past or currently so I think you're off target.
"back in the day" is not now. Fidelity no longer has to do that because they now have a superior product to RH and many others, it is not even close.
What does ancient history have to do with today ? I think you're off target.
And Vanguard does not do it today, and AFAIK never did have to buy business.
Fidelity does offer bonuses just not publicly for example a contact email I received recently from them said:
P.S. We have cash rewards for bringing assets into Fidelity. Simply reply to this email and I will send our reward tier's!
So your point is not particularly persuasive as most custodians have had them at one time or another and some like merrill edge still do so it's not a marker for much at all.

I'm assuming you were solicited by somebody who can offer you a bonus, I highly doubt that was in one of Fidelity's mass marketing emails.
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Re: What is the appeal of Robinhood

Post by placeholder »

beyou wrote: Fri Mar 15, 2024 5:42 pm
The problem is you started with a conclusion and want to warp all evidence to suit that when the fact is that transfer bonuses have been a long time strategy employed by many custodians over the years.
Same could be said of your argument.

First you need to understand the assertion/point or there is no reason to discuss the facts.

My point is that a bonus is a way to “buy business”. People on this site discuss a tiny handful of the thousands of brokers in the industry.
It is a way and I didn't dispute that what I dispute is that it indicates some problem with robinhood when most of the major discount brokers which are of interest do or have in the recent past and might again and I'll point out that some of these others that don't pay bonuses aren't ones that people here recommend either.
Last edited by placeholder on Fri Mar 15, 2024 10:42 pm, edited 1 time in total.
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Re: What is the appeal of Robinhood

Post by placeholder »

tj wrote: Fri Mar 15, 2024 6:19 pm I'm assuming you were solicited by somebody who can offer you a bonus, I highly doubt that was in one of Fidelity's mass marketing emails.
It's from the local team in one of those reach out emails* there so yeah currently fidelity is not publicly advertising bonuses but they certainly have them and freely mention them so the assertion that custodians using bonuses to build their asset base indicates a problem is faulty in my opinion.

* Here is what was sent with certain information removed
Dear [placeholder]

I am one of the advisors who cover the region for Fidelity Investments

I work with clients in many capacities including:

Investment ideas
Portfolio Reviews
Retirement planning
Income planning
Estate planning
Tax efficiency
Money Markets paying over 5%

And more!

Is anything I can provide or assist with at this time?

Also, we have cash rewards for consolidating assets into Fidelity!

I will reach out again soon. Have a tremendous day and thank you for choosing Fidelity investments

Sincerely, [rep]

P.S. We have cash rewards for bringing assets into Fidelity. Simply reply to this email and I will send our reward tier's!
tj
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Re: What is the appeal of Robinhood

Post by tj »

What are the reward tiers?
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Re: What is the appeal of Robinhood

Post by placeholder »

tj wrote: Fri Mar 15, 2024 10:31 pm What are the reward tiers?
Not particularly great although if you were thinking of moving there anyway there might be something:

250k - 350
500k - 750
1mil - 1500
2mil - 2000
3mil - 3000
4mil - 4000
5mil - 5000

The rep also said that if it were over 1mil "We have offers greater than presented."
darrens
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Re: What is the appeal of Robinhood

Post by darrens »

Wasn't it the first to offer free trades? I signed up early on with some "fun money" and bought and sold individual stocks when I had the time simply because the trades were free and I think everyone else was $5. I think all the trades now that are free are because of Robinhood.
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Riprap
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Re: What is the appeal of Robinhood

Post by Riprap »

I equate Robinhood to a used car lot with lots of balloons, shiny streamers, and the ever so ubiquitous floppy inflatable tube men. It attracts a certain demographic.
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Re: What is the appeal of Robinhood

Post by veggivet »

Riprap wrote: Sat Mar 16, 2024 3:14 pm I equate Robinhood to a used car lot with lots of balloons, shiny streamers, and the ever so ubiquitous floppy inflatable tube men. It attracts a certain demographic.
Agreed, except the difference with this used car dealer is that they're giving you thousands of dollars if you park your car there for 5 years.😉
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Re: What is the appeal of Robinhood

Post by tj »

veggivet wrote: Sat Mar 16, 2024 3:29 pm
Riprap wrote: Sat Mar 16, 2024 3:14 pm I equate Robinhood to a used car lot with lots of balloons, shiny streamers, and the ever so ubiquitous floppy inflatable tube men. It attracts a certain demographic.
Agreed, except the difference with this used car dealer is that they're giving you thousands of dollars if you park your car there for 5 years.😉
And what demographic might that be?
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Re: What is the appeal of Robinhood

Post by patrick »

tj wrote: Sat Mar 16, 2024 3:34 pm
veggivet wrote: Sat Mar 16, 2024 3:29 pm
Riprap wrote: Sat Mar 16, 2024 3:14 pm I equate Robinhood to a used car lot with lots of balloons, shiny streamers, and the ever so ubiquitous floppy inflatable tube men. It attracts a certain demographic.
Agreed, except the difference with this used car dealer is that they're giving you thousands of dollars if you park your car there for 5 years.😉
And what demographic might that be?
Hmmm, what kind of people both (1) have a fair amount of money and (2) have little reason to worry about the PFOF complaints? Sounds like bogleheads to me. Those who don't believe in frequent trading shouldn't care that much if their execution prices are 0.05% worse.
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Re: What is the appeal of Robinhood

Post by Josh5000 »

nalor511 wrote: Wed Mar 13, 2024 5:06 pm Because Vanguard/Schwab/Fidelity will not pay you a 3% bonus on unlimited IRA/Roth transferred balance (promo ends 4/30/2024)
Is this for new clients only or existing clients as well? Is it limited to just cash transfer or in-kind asset transfers as well? For example, if I want to transfer my Roth and Simple IRA to Robin Hood, do I have to liquidate my holdings to transfer cash?

3% is 3%. NahMean.
tj
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Re: What is the appeal of Robinhood

Post by tj »

Josh5000 wrote: Sat Mar 16, 2024 5:17 pm
nalor511 wrote: Wed Mar 13, 2024 5:06 pm Because Vanguard/Schwab/Fidelity will not pay you a 3% bonus on unlimited IRA/Roth transferred balance (promo ends 4/30/2024)
Is this for new clients only or existing clients as well? Is it limited to just cash transfer or in-kind asset transfers as well? For example, if I want to transfer my Roth and Simple IRA to Robin Hood, do I have to liquidate my holdings to transfer cash?

3% is 3%. NahMean.
You certainly wouldn't need to liquidate your holdings to cash. Don't know if Self Employed plans would be eligible.

viewtopic.php?t=410277
tj
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Re: What is the appeal of Robinhood

Post by tj »

patrick wrote: Sat Mar 16, 2024 3:53 pm
tj wrote: Sat Mar 16, 2024 3:34 pm
veggivet wrote: Sat Mar 16, 2024 3:29 pm
Riprap wrote: Sat Mar 16, 2024 3:14 pm I equate Robinhood to a used car lot with lots of balloons, shiny streamers, and the ever so ubiquitous floppy inflatable tube men. It attracts a certain demographic.
Agreed, except the difference with this used car dealer is that they're giving you thousands of dollars if you park your car there for 5 years.😉
And what demographic might that be?
Hmmm, what kind of people both (1) have a fair amount of money and (2) have little reason to worry about the PFOF complaints? Sounds like bogleheads to me. Those who don't believe in frequent trading shouldn't care that much if their execution prices are 0.05% worse.
I would agree! Not sure what that has to do withthe used car lot with balloons and inflatable man though.
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Re: What is the appeal of Robinhood

Post by nalor511 »

Josh5000 wrote: Sat Mar 16, 2024 5:17 pm
nalor511 wrote: Wed Mar 13, 2024 5:06 pm Because Vanguard/Schwab/Fidelity will not pay you a 3% bonus on unlimited IRA/Roth transferred balance (promo ends 4/30/2024)
Is this for new clients only or existing clients as well? Is it limited to just cash transfer or in-kind asset transfers as well? For example, if I want to transfer my Roth and Simple IRA to Robin Hood, do I have to liquidate my holdings to transfer cash?

3% is 3%. NahMean.
Transfer in-kind, no time out of market https://robinhood.com/us/en/about/retirement/
Josh5000
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Re: What is the appeal of Robinhood

Post by Josh5000 »

nalor511 wrote: Sat Mar 16, 2024 5:37 pm
Josh5000 wrote: Sat Mar 16, 2024 5:17 pm
nalor511 wrote: Wed Mar 13, 2024 5:06 pm Because Vanguard/Schwab/Fidelity will not pay you a 3% bonus on unlimited IRA/Roth transferred balance (promo ends 4/30/2024)
Is this for new clients only or existing clients as well? Is it limited to just cash transfer or in-kind asset transfers as well? For example, if I want to transfer my Roth and Simple IRA to Robin Hood, do I have to liquidate my holdings to transfer cash?

3% is 3%. NahMean.
Transfer in-kind, no time out of market https://robinhood.com/us/en/about/retirement/
No mention of in-kind transfer on the site. It seems to allude to this being a cash transfer. How would they know how much to match if it stock transfer? Closing price on date of transfer initiation or date of arrival. Very vague offer that seem to be cash only.

No 'Contact Us' any where on Robin Hood. They claim to be SPIC so I'll look over SPIC to see if they are.
Last edited by Josh5000 on Sat Mar 16, 2024 5:47 pm, edited 1 time in total.
nalor511
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Re: What is the appeal of Robinhood

Post by nalor511 »

Josh5000 wrote: Sat Mar 16, 2024 5:42 pm
nalor511 wrote: Sat Mar 16, 2024 5:37 pm
Josh5000 wrote: Sat Mar 16, 2024 5:17 pm
nalor511 wrote: Wed Mar 13, 2024 5:06 pm Because Vanguard/Schwab/Fidelity will not pay you a 3% bonus on unlimited IRA/Roth transferred balance (promo ends 4/30/2024)
Is this for new clients only or existing clients as well? Is it limited to just cash transfer or in-kind asset transfers as well? For example, if I want to transfer my Roth and Simple IRA to Robin Hood, do I have to liquidate my holdings to transfer cash?

3% is 3%. NahMean.
Transfer in-kind, no time out of market https://robinhood.com/us/en/about/retirement/
No mention of in-kind transfer on the site. It seems to allude to this being a cash transfer. How would they know how much to match if it stock transfer? Closing price on date of transfer initiation or date of arrival. Very vague offer that seem to be cash only.
I've already done 4 of them, bonus is credited according to the valuation as soon as the assets hit your RH account, it's not vague, it's not cash only, it's legit and very well defined and discussed to death viewtopic.php?t=410277
furiouschads
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Re: What is the appeal of Robinhood

Post by furiouschads »

The appeal to me is that Robinhood offers meaningful competition to Fidelity, Schwab, and Vanguard. I'm old enough to remember walking as a child past a Merrill, Lynch, Pierce, Fenner & Smith office in downtown Austin.

Through the big glass windows, I could see a ticker running on the wall. And I think I remember rows of chairs for people who wanted to sit and watch the ticker. We have moved a long way from that time. A lot of that progress was driven by little companies that wanted to establish themselves by offering something attractive.

Yes, Robinhood is (currently) tiny by comparison. But driving commissions to zero was a worthwhile contribution to efficiency. The big boys had to match. The uncapped 3% bonus for transferring retirement accounts is another contribution. We will see if the big boys match that. E*trade, Wells, and Fidelity had nothing to counter when I checked recently.
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Josh5000
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Re: What is the appeal of Robinhood

Post by Josh5000 »

Thanks for the link to the thread. I am looking at it now.

For in-kind transfer, can I do a single transfer of the entire Roth or Roll-Over IRA accounts over? It is SPIC and I am right at the $500k limit per account, assuming that the coverage is per account instead of per member. RB also claims to have additional insurance for coverage up to $1 million.
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Re: What is the appeal of Robinhood

Post by Josh5000 »

furiouschads wrote: Sat Mar 16, 2024 5:49 pm The appeal to me is that Robinhood offers meaningful competition to Fidelity, Schwab, and Vanguard. I'm old enough to remember walking as a child past a Merrill, Lynch, Pierce, Fenner & Smith office in downtown Austin.

Through the big glass windows, I could see a ticker running on the wall. And I think I remember rows of chairs for people who wanted to sit and watch the ticker. We have moved a long way from that time. A lot of that progress was driven by little companies that wanted to establish themselves by offering something attractive.

Yes, Robinhood is (currently) tiny by comparison. But driving commissions to zero was a worthwhile contribution to efficiency. The big boys had to match. The uncapped 3% bonus for transferring retirement accounts is another contribution. We will see if the big boys match that. E*trade, Wells, and Fidelity had nothing to counter when I checked recently.
It would be sweet if Fidelity wants to do that as I am looking at transferring to Fidelity now.
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Re: What is the appeal of Robinhood

Post by sycamore »

Josh5000 wrote: Sat Mar 16, 2024 5:51 pm Thanks for the link to the thread. I am looking at it now.

For in-kind transfer, can I do a single transfer of the entire Roth or Roll-Over IRA accounts over? It is SPIC and I am right at the $500k limit per account, assuming that the coverage is per account instead of per member. RB also claims to have additional insurance for coverage up to $1 million.
Yes. You can transfer your whole IRA, Roth or Traditional. That's what I did. Standard ACSTS.

They also reimburse up to $75 in transfer out fees.
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Re: What is the appeal of Robinhood

Post by tj »

Josh5000 wrote: Sat Mar 16, 2024 5:42 pm
nalor511 wrote: Sat Mar 16, 2024 5:37 pm
Josh5000 wrote: Sat Mar 16, 2024 5:17 pm
nalor511 wrote: Wed Mar 13, 2024 5:06 pm Because Vanguard/Schwab/Fidelity will not pay you a 3% bonus on unlimited IRA/Roth transferred balance (promo ends 4/30/2024)
Is this for new clients only or existing clients as well? Is it limited to just cash transfer or in-kind asset transfers as well? For example, if I want to transfer my Roth and Simple IRA to Robin Hood, do I have to liquidate my holdings to transfer cash?

3% is 3%. NahMean.
Transfer in-kind, no time out of market https://robinhood.com/us/en/about/retirement/
No mention of in-kind transfer on the site. It seems to allude to this being a cash transfer. How would they know how much to match if it stock transfer? Closing price on date of transfer initiation or date of arrival. Very vague offer that seem to be cash only.

No 'Contact Us' any where on Robin Hood. They claim to be SPIC so I'll look over SPIC to see if they are.
"Seem to be cash only"? Almost everyone in the thread I linked to is transferring securities in.
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Re: What is the appeal of Robinhood

Post by valleyrock »

Maid Marion
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Re: What is the appeal of Robinhood

Post by billaster »

darrens wrote: Sat Mar 16, 2024 2:43 pm Wasn't it the first to offer free trades? I signed up early on with some "fun money" and bought and sold individual stocks when I had the time simply because the trades were free and I think everyone else was $5. I think all the trades now that are free are because of Robinhood.
Don't forget that Robinhood's offer of free trades was all a lie. They advertised zero commissions on the front end but then secretly collected bribes for order flow on the back end to cheat their customers, lying to them about it all.

Robinhood paid millions in fines to the SEC for their lying and cheating.
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Re: What is the appeal of Robinhood

Post by tj »

billaster wrote: Sat Mar 16, 2024 8:12 pm
darrens wrote: Sat Mar 16, 2024 2:43 pm Wasn't it the first to offer free trades? I signed up early on with some "fun money" and bought and sold individual stocks when I had the time simply because the trades were free and I think everyone else was $5. I think all the trades now that are free are because of Robinhood.
Don't forget that Robinhood's offer of free trades was all a lie. They advertised zero commissions on the front end but then secretly collected bribes for order flow on the back end to cheat their customers, lying to them about it all.

Robinhood paid millions in fines to the SEC for their lying and cheating.
All I know is they paid me $9000 to hold stuff that I already owned and no other broker was willing to do that.
the_wiki
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Re: What is the appeal of Robinhood

Post by the_wiki »

billaster wrote: Sat Mar 16, 2024 8:12 pm
darrens wrote: Sat Mar 16, 2024 2:43 pm Wasn't it the first to offer free trades? I signed up early on with some "fun money" and bought and sold individual stocks when I had the time simply because the trades were free and I think everyone else was $5. I think all the trades now that are free are because of Robinhood.
Don't forget that Robinhood's offer of free trades was all a lie. They advertised zero commissions on the front end but then secretly collected bribes for order flow on the back end to cheat their customers, lying to them about it all.

Robinhood paid millions in fines to the SEC for their lying and cheating.
A bit dramatic. Schwab, TD and E*trade also have significant PFOF income and nobody cries about them.
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Re: What is the appeal of Robinhood

Post by slondr »

billaster wrote: Sat Mar 16, 2024 8:12 pm
darrens wrote: Sat Mar 16, 2024 2:43 pm Wasn't it the first to offer free trades? I signed up early on with some "fun money" and bought and sold individual stocks when I had the time simply because the trades were free and I think everyone else was $5. I think all the trades now that are free are because of Robinhood.
Don't forget that Robinhood's offer of free trades was all a lie. They advertised zero commissions on the front end but then secretly collected bribes for order flow on the back end to cheat their customers, lying to them about it all.

Robinhood paid millions in fines to the SEC for their lying and cheating.
Doesn't Schwab do the same thing? And Fidelity? I was under the impression that the only popular brokerage that didn't do that, and didn't make a significant percentage of its income from doing that as a result, was Vanguard.
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Re: What is the appeal of Robinhood

Post by nalor511 »

slondr wrote: Sat Mar 16, 2024 8:24 pm
billaster wrote: Sat Mar 16, 2024 8:12 pm
darrens wrote: Sat Mar 16, 2024 2:43 pm Wasn't it the first to offer free trades? I signed up early on with some "fun money" and bought and sold individual stocks when I had the time simply because the trades were free and I think everyone else was $5. I think all the trades now that are free are because of Robinhood.
Don't forget that Robinhood's offer of free trades was all a lie. They advertised zero commissions on the front end but then secretly collected bribes for order flow on the back end to cheat their customers, lying to them about it all.

Robinhood paid millions in fines to the SEC for their lying and cheating.
Doesn't Schwab do the same thing? And Fidelity? I was under the impression that the only popular brokerage that didn't do that, and didn't make a significant percentage of its income from doing that as a result, was Vanguard.
Schwab uses pfof, Fidelity does not.
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Re: What is the appeal of Robinhood

Post by nisiprius »

Josh5000 wrote: Sat Mar 16, 2024 5:42 pm ...They claim to be [SIPC] so I'll look over [SIPC] to see if they are...
(I think Robinhood is a Bad Thing, but...) ...with regard to SIPC, Robinhood is big enough and conspicuous enough and has been around long enough that it is inconceivable that they would be lying about it and would not have been caught. When they fibbed about their "savings accounts" and "checking accounts" being "insured by the SIPC" they were caught within less than two days, I think the financial news was quoting the SIPC chair as saying they weren't on the very next day.

But it's easy enough to check.

SIPC List of Members
All registered brokers or dealers are SIPC members by law, with some exceptions.

...
ROBINHOOD FINANCIAL LLC
LAKE MARY, FL
ROBINHOOD SECURITIES LLC
LAKE MARY, FL
...
Image

Now, of course, I am scratching my head over which is the "real" Robinhood. The parent company is "Robinhood Markets, Inc." and headquartered in Menlo Park, CA, while Wikipedia says that "Robinhood Financial" and "Robinhood Securities" are subsidiaries. Anybody with an account... according to the fine print, when you use the Robinhood app, what company, exactly, are you dealing with?
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Re: What is the appeal of Robinhood

Post by nalor511 »

nisiprius wrote: Sat Mar 16, 2024 8:38 pm
Josh5000 wrote: Sat Mar 16, 2024 5:42 pm ...They claim to be [SIPC] so I'll look over [SIPC] to see if they are...
(I think Robinhood is a Bad Thing, but...) ...with regard to SIPC, Robinhood is big enough and conspicuous enough and has been around long enough that it is inconceivable that they would be lying about it and would not have been caught. When they fibbed about their "savings accounts" and "checking accounts" being "insured by the SIPC" they were caught within less than two days, I think the financial news was quoting the SIPC chair as saying they weren't on the very next day.

But it's easy enough to check.

SIPC List of Members
All registered brokers or dealers are SIPC members by law, with some exceptions.

...
ROBINHOOD FINANCIAL LLC
LAKE MARY, FL
ROBINHOOD SECURITIES LLC
LAKE MARY, FL
...
Image

Now, of course, I am scratching my head over which is the "real" Robinhood. The parent company is "Robinhood Markets, Inc." and headquartered in Menlo Park, CA, while Wikipedia says that "Robinhood Financial" and "Robinhood Securities" are subsidiaries. Anybody with an account... according to the fine print, when you use the Robinhood app, what company, exactly, are you dealing with?
One is probably the brokerage, and the other the clearing firm, since generally there are reasons to separate the two entities, but I do not know this for a fact
tj
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Re: What is the appeal of Robinhood

Post by tj »

nalor511 wrote: Sat Mar 16, 2024 8:40 pm
nisiprius wrote: Sat Mar 16, 2024 8:38 pm
Josh5000 wrote: Sat Mar 16, 2024 5:42 pm ...They claim to be [SIPC] so I'll look over [SIPC] to see if they are...
(I think Robinhood is a Bad Thing, but...) ...with regard to SIPC, Robinhood is big enough and conspicuous enough and has been around long enough that it is inconceivable that they would be lying about it and would not have been caught. When they fibbed about their "savings accounts" and "checking accounts" being "insured by the SIPC" they were caught within less than two days, I think the financial news was quoting the SIPC chair as saying they weren't on the very next day.

But it's easy enough to check.

SIPC List of Members
All registered brokers or dealers are SIPC members by law, with some exceptions.

...
ROBINHOOD FINANCIAL LLC
LAKE MARY, FL
ROBINHOOD SECURITIES LLC
LAKE MARY, FL
...
Image

Now, of course, I am scratching my head over which is the "real" Robinhood. The parent company is "Robinhood Markets, Inc." and headquartered in Menlo Park, CA, while Wikipedia says that "Robinhood Financial" and "Robinhood Securities" are subsidiaries. Anybody with an account... according to the fine print, when you use the Robinhood app, what company, exactly, are you dealing with?
One is probably the brokerage, and the other the clearing firm, since generally there are reasons to separate the two entities, but I do not know this for a fact

"Robinhood Securities, LLC (“RHS”) carries your account as the clearing broker by arrangement with your introducing broker-dealer, Robinhood Financial LLC (“RHF”)"
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Re: What is the appeal of Robinhood

Post by nisiprius »

Thank you! Anyway, Robinhood is a member of the SIPC.
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furiouschads
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Re: What is the appeal of Robinhood

Post by furiouschads »

nisiprius wrote: Sat Mar 16, 2024 8:38 pm
Josh5000 wrote: Sat Mar 16, 2024 5:42 pm ...They claim to be [SIPC] so I'll look over [SIPC] to see if they are...
Now, of course, I am scratching my head over which is the "real" Robinhood. The parent company is "Robinhood Markets, Inc." and headquartered in Menlo Park, CA, while Wikipedia says that "Robinhood Financial" and "Robinhood Securities" are subsidiaries. Anybody with an account... according to the fine print, when you use the Robinhood app, what company, exactly, are you dealing with?
From Robinhood's customer relationship summary: https://cdn.robinhood.com/assets/robinh ... ummary.pdf

"Robinhood Financial LLC (“Robinhood Financial”, “RHF,” “we,” “our,” or “us”) is registered with the U.S. Securities and
Exchange Commission as a broker-dealer and is a member of the Financial Industry Regulatory Authority (“FINRA”) and
the Securities Investor Protection Corporation (“SIPC”). "

...

"Robinhood Financial is an introducing broker-dealer. Your cash and securities will be custodied by our affiliate, Robinhood
Securities, LLC
(“Robinhood Securities” and together with Robinhood Financial, “Robinhood”), which services your
account by executing, clearing and settling your trades; preparing and distributing your account statements and trade
confirmations; and extending credit to margin accounts."
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nalor511
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Re: What is the appeal of Robinhood

Post by nalor511 »

I'm sure people have already read it, but there's a fool article about the new 3% cash back credit card and the 1% brokerage deposit bonus (neither is live yet) and (this was news to me) $2.2mil of FDIC coverage if you leave your deposits in the 5%APY cash sweep https://www.fool.com/the-ascent/buying- ... -and-more/
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nps
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Re: What is the appeal of Robinhood

Post by nps »

nalor511 wrote: Tue Apr 02, 2024 5:04 pm I'm sure people have already read it, but there's a fool article about the new 3% cash back credit card and the 1% brokerage deposit bonus (neither is live yet) and (this was news to me) $2.2mil of FDIC coverage if you leave your deposits in the 5%APY cash sweep https://www.fool.com/the-ascent/buying- ... -and-more/
"You'd have to spend $1,200 annually to earn $60 worth of rewards unless you book travel through the Robinhood travel portal, in which case, you'll recoup the membership fee even faster."

This seems inaccurate for a 3% card
Lyrrad
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Re: What is the appeal of Robinhood

Post by Lyrrad »

nps wrote: Tue Apr 02, 2024 5:16 pm "You'd have to spend $1,200 annually to earn $60 worth of rewards unless you book travel through the Robinhood travel portal, in which case, you'll recoup the membership fee even faster."

This seems inaccurate for a 3% card
I assume that accuracy isn't the point of that article, but rather getting people to read the article and view ads or sign up and earn a referral.

I found the NY Times article from last week informative. Robinhood’s Credit Card Offers 3% Cash Back. Can It Last?
Here’s the first thing to know about the new Robinhood credit card that promises 3 percent cash back on all purchases, without limits: Yesterday, when I asked Vlad Tenev, the company’s chief executive, to guarantee that it would stay at that level for 18 months, he would not.

I hope it sticks. It’s incredibly generous as these things go. Cash-back offers from big card issuers like Citibank generally top out at about 2 percent, and it’s hard to make money even at that level. Charles Schwab gave up on its 2 percent card in 2010.
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Re: What is the appeal of Robinhood

Post by triz »

A lot of people want excitement and lack patience -- so Robinhood gamifies investing in a casual manner.
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Re: What is the appeal of Robinhood

Post by placeholder »

triz wrote: Tue Apr 02, 2024 8:55 pm A lot of people want excitement and lack patience -- so Robinhood gamifies investing in a casual manner.
Other people like money so the idea of fat bonuses in iras is really attractive.
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Beensabu
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Re: What is the appeal of Robinhood

Post by Beensabu »

alex_686 wrote: Wed Mar 13, 2024 9:21 pm Let us be fair to Robinhood.
No.
...once they got there they had to shut down trading. Only choice they had.
They didn't shut down trading. They shut down buying for specific stocks. Only buying, and only for specific stocks. In order to limit losses for certain short sellers and get a waiver of its deposit requirement.
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nps
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Re: What is the appeal of Robinhood

Post by nps »

Beensabu wrote: Tue Apr 02, 2024 11:49 pm In order to limit losses for certain short sellers
Can you provide evidence for this?
FInatic
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Re: What is the appeal of Robinhood

Post by FInatic »

I personally would never use RH for long term buy and hold investing. The platform gamifies stock-investing, and would lead me to have itchy fingers. :annoyed
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hmw
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Re: What is the appeal of Robinhood

Post by hmw »

1% transfer bonus for a 2-year hold. I don't trade and will transfer out after the 2-year hold is up.
tj
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Re: What is the appeal of Robinhood

Post by tj »

hmw wrote: Wed Apr 03, 2024 11:02 am 1% transfer bonus for a 2-year hold. I don't trade and will transfer out after the 2-year hold is up.
Ditto except 3% transfer bonus for 5 year hold.
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cosmos
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Re: What is the appeal of Robinhood

Post by cosmos »

billaster wrote: Fri Mar 15, 2024 11:40 am
What's nutso about Robinhood is that their average client is a first time investor with an account balance of less than $5,000. And then Robinhood hooks up these naive investors with margin leverage and option trading. Of course they blew up when GameStock happened. Robinhood is a shady brokerage known to steal from its clients. It's not surprising that they would have marginal capital.
Robinhood as a name suggests an altruistic goal of "taking from the rich to give to the poor" aka giving young first time investors a fair shake at the investment game. They should probably change their name to Nottingham based on all their actions.
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Re: What is the appeal of Robinhood

Post by newbienyc »

As of late Robinhood has been on a strong growth oriented strategy as a company, which is actually somewhat compelling as a consumer.

Their gold program has had some traction! its 50/year annual fees, 3% match for a rollover, 1% match on any transfers and credit purchases... seems like a no brainer but who knows until it gets more customers onboarded
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Re: What is the appeal of Robinhood

Post by billaster »

nps wrote: Wed Apr 03, 2024 5:24 am
Beensabu wrote: Tue Apr 02, 2024 11:49 pm In order to limit losses for certain short sellers
Can you provide evidence for this?
Hard to prove but, boy howdy, it sure looks shady.

Citadel was providing about half of Robinhood's entire revenue through Payment for Order Flow. And Citadel also happened to be backing $2 billion in shorts on Gamestop. Just a coincidence?

Citadel was in constant communication with Robinhood's trading desk minute by minute for order flow, Citadel was effectively keeping Robinhood afloat as their primary revenue source, and Citadel had a $2 billion interest in Gamestop shorts. Wink, wink, nudge, nudge? Hard to prove
nalor511
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Re: What is the appeal of Robinhood

Post by nalor511 »

FInatic wrote: Wed Apr 03, 2024 6:08 am I personally would never use RH for long term buy and hold investing. The platform gamifies stock-investing, and would lead me to have itchy fingers. :annoyed
as a buy and hold investor, I don't know what you guys mean... I hate the RH UI. They gave me a large bonus to transfer-in, but nothing about their UI makes me want to trade. *shrug* .

All they would need to do to entice my taxable account in would be to track/display tax-lot/cost-basis, which they do not currently.
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