Calculation shows I saved $2600 worth of commissions costs in 2018!!!! I cringe now when I have to use my other broker account and pay $6.95 for a trade...
because a limit is at that price OR BETTER If entitled. As many have said , your ignorance is bliss...and RH is counting on it.
I have used the top brokers and have never been filled at a "BETTER if entitled" limit fill anyway I saved over $2500 worth of commission last year!!!
Most brokers disclose their price improvement and order execution statistics. The improvements may not wipe out the commission completely, but these brokers usually provide data, back testing, advanced charting, reports and services that would cost you separately. I prefer to know I'm getting price improvement over paying $4.95/trade. Also, if you're saving $2500 a year in commissions at RH, that means you're an active trader and could likely negotiate better terms at a traditional broker anyways. https://www.tdameritrade.com/tools-and-platforms/order-execution.page https://www.schwab.com/public/schwa...n_quality/retail_execution_quality_statistics https://www.fidelity.com/trading/execution-quality/overview
%% They made news in WSJ this month; pay for order flow. And plenty of stocks priced $1-$5, RH disclosed. That used to bother me; when you buy 2 apples on 3 for $1.oo, the seller always gets an extra penny.LOL On he other hand if one buys 3 pounds of apples its usually 3.3 lbs, rather regular.
%% Interesting name-RH; if I liked stocks $1-5, lived close to bay,+typed faster, I may try RH.6.66 million customers cant be wrong or how ever may have.Cant get ripped off to bad on limit orders.
Here's a good point and counterpoint from Seeking Alpha and a good education on order flow. https://seekingalpha.com/.../4205379-robinhood-making-millions-selling- millennial-customers-high-frequency-traders https://seekingalpha.com/article/4205761-robinhood-villain-made I think RH is great for Millennials, beginners, and those short of funds because it allows them to buy very small lots and diversify. On the other hand, their entry into complex option trades and bitcoins seems to make them just a mobile casino. https://www.marketwatch.com/story/t...most-2000-2019-01-22?mod=MW_story_top_stories
%% Good/excellant Alpha Article/+ pictures, Cisco34.These comments are not for ,or against Robbin Hood Traders.I never expect ANY broker or market makers to work for free; even though many privates sector charities do free work-fine. Actually in a very liquid market , careful market orders can work fine{BUT this comment does not apply to penny stock prices $1-$5.00}Limit orders can work well also. And comments sure doesn't apply to bit con; spell checker not used. Its like when i buy 2 apples on 3 for $1.00 sale ; they keep the penny+ so i pay $00. 67 for 2 apples+ they keep the penny,plus profit. LOL. Or like in SEPT harvest time, many apple sellers flood the market, which lowers the price.Then i buy 3 pounds of Apples for $3.00, or less. And most ALL those apple sellers give you more than 3 pounds/bag 'cause i measure/weigh the 3 pound bag before i buy .LOL + true. You can get an even better deal if you have a commercial orchard or buy a bushel of apples. Same pattern in most any market.
I got totally raped by RH today on option trade! The price I got filled is so far from the market price it's not even funny.