Robinhood self clearing?

Discussion in 'Risk Management' started by qlai, Nov 21, 2018.

  1. qlai


  2. ajacobson


    Sounds more like teething pains. Any broker with a decent scale wants to go self-clearing to reduce expenses.
    Clearly, Robinhood is all about keeping expenses low.
    Apex's predecessor - Penson - failed, mostly based on concentration issues.
  3. Robert Morse

    Robert Morse Sponsor

    The big money in self clearing is the banking side of the clearing. (Debit interest and stock loan) Since that is a big part of their revenue stream in addition to PFOF, self clearing makes sense for them.
  4. qlai


    I understand the cost reduction plus a better control of the process. But is there more likely hood of scenerio than when there is independent clearing?
  5. They can't lend out stock on fully paid accounts. Do they really do much on margin on their presumably average small size account?
  6. in the daytrading domain, I think Hold Brothers was self clearing for a long time. Dunno if they still around.
  7. Robert Morse

    Robert Morse Sponsor

    Hold Brothers is a prop firm not a clearing member. They do not deal with customer accounts. They clear at ETC.
  8. Hi Robert.
    I was with them for 1-2 years. I remember having the option of joining their prop firm (w 10:1 leverage) or opening a Reg T with 2:1 or 4:1 over $25,000. We are going way back.
  9. Robert Morse

    Robert Morse Sponsor

    I know they refer customer accounts to Cuttone an introducing broker. Look at their Finra Broker check.
  10. dealmaker


    Last edited: Nov 22, 2018
    #10     Nov 22, 2018