‘Big Short’ Investor Michael Burry Blasts Trading Apps, Calls Robinhood a ‘Dangerous Casino’ (Business Insider) Michael Burry on Tuesday dismissed the idea that Robinhood and other trading apps were empowering retail investors and disrupting the financial industry. “The #mainstreetrevolution is a myth,” the Scion Asset Management boss tweeted. “Zero commissions and gamified apps were designed to feed flows to the two most influential WS trading houses.” Burry, best known for his starring role in Michael Lewis’ book “The Big Short,” was referring to Robinhood and some of its peers selling their order flows to Wall Street firms such as Citadel.
would you rather pay ten bucks a trade AND the penny hft will pick you off at OR give the hft the penny for instant execution? Are people stupid? If there ins't payment for order flow there is commission, pick one idiots.
The reality is if your trading on robinhood or investing on it the small slippage in the transaction that might coincide with the commission cost at another brokerage doesn't matter....it's dangerous attacking robinhood for the faults of retail traders...it's begging for more regulation which never benefits the individual trader only institutions. Let people lose some money , some will learn to play the game , some will end up.in GA and others will just move on....
His point is that robinhood is a scam. It’s a Distribution system for citadel securities. it’s not different than a junket in Macao
are you saying that if I buy a stock and hold it for a year and sell it it's somehow different at Goldman Sachs and it is a Robin Hood??? It's not.
Robinhood doesn't want your business if you buy a stock and hold it for a year. They want you to "level up" to options trading. If they don't already, they will probably release a badge system (you get a badge for trading 1000 shares, you get a badge for doing 5 overwrites).
Agree that if there marketing solicits risky decisions that's wrong and I think there are already owes l laws on the books on that
Agreed, the "the stock market is just a casino!" sentiment that has received additional fuel due to recent Robinhood events is dangerous and can backfire on legit traders (i.e. those that are in fact not treating it like a casino). I really wish guys like Burry would tone down the rhetoric, because although he does target RH here his words resonate wider among laymen (those include most politicians).