One user: "I have an order that executed at 5:35 pm that instantly lost me money because it bought at the morning price instead of the price end of day which was 10% lower."
Robinhood outage Fortune 's Lucinda Shen has an in-depth piece on Robinhood's catastrophic outage a few days ago. She writes: "Stock-trading darling Robinhood, which was founded in 2013, had successfully sold itself to millions of users as a digital-native app for Internet-savvy young traders…As Robinhood may be learning, one problem with those Internet-savvy customers is that when things go wrong they know exactly how to vent their frustrations." Fortune
RH is likely using all of the latest “hipster” tech and distributed architecture. But consider a monstrosity like IB TWS - it is a miracle that it still works. Nothing replaces legacy code that has been battle-tested over a decade...
Indeed. TWS is the story of a pursuit of software functionality so ambitious, that it borders on hubris. The actual realized functionalities however, fall far short of that ambition. There is TWS the dream, and then there is the intractability of a legacy code base. I can only imagine the monumental effort it must have consumed over the years...
Robinhood down again today (sporadically): “Trading is currently down on Robinhood and we’re investigating the issue. We’re focused on getting back up and running as soon as possible and we’ll update the status page with the latest status.robinhood.com.”
Yes, pretty much. Actually market makers, as not all HFTs may be market makers (?). Though they also sell some subscription for providing small margin, try to get into banking, and generally planned to leverage their user base to offer additional services in the future.
most people don't log into their accounts and don't trade. these brokers didn't expect all their customers to log in at the same time. brokers like robinhoood make money on interest on customer cash accounts or loans to customers buying stock before. that shows how small the operation is it cannot handle even that much people logging in.