Good reason to wish them the best even if they're not yet up to pro standards as far as brokerages go. I wouldn't consider using RH for my trading but if SEC/SIPC confirm that the 3% accounts are insured, I may park excess cash there.
Agree. They probably screwed up by implementing their own clearing, although they didn’t spare expenses hiring up to 70 developers... https://blokt.com/news/robinhood-introduces-clearing-new-system-with-lower-fees “Roughly 70 Robinhood employees built the “Clearing by Robinhood” technology in Lake Mary, Florida.”
you don't know that. it happens once. if it costs you dearly and if you are not a fool you leave and may tell of your experience to your friends. word does get around.
This happened to my wife and I had to confirm online that it’s a problem for many people. Not a great thing, but I also know that my wife won’t survive long without Robinhood. She is excited when she makes $5 while stressed out when she loses $50. But over couple years she’s got quite good (at not losing) and all this may still cost less than Candy Crush. I just imagine that many people take it to another level, while I’m also in couple Robinhood groups on Facebook where I just see thousands of people excitedly discussing all their trades. I also have a Robinhood account (and 4 other brokers), as it is my job to understand the industry.
70 is a nice number but insufficient to address the issue. it is how much you pay them that skews the results. as Bill Gates said:" if you want he best machinist you need to pay 10X the average industrial salary. if you want the best programmers you need to pay 100X the average programmer's salary.
"but I also know that my wife won’t survive long without Robinhood. " I hope American Capitalism doesn't become dependent on Robin Hood for its survival.
It’s not that bad. Each Robinhood programmer is getting paid one share of a random stock. And that’s each month!
My job is to create an automated trading platform for my own use, though being in the software business I have to continually think about everything that involves trading technology, brokers, order execution, etc. This also involves understanding internals of various brokerages, fill rates, margin rates (they differ between brokerages), even their marketing, user GUI and user experiences. While this is required of every professional, and also in colleges you have to learn quite a lot more than just how to skin a cat. In the past I was involved in different industries and each time my job was to fully understand that industry.