I trade option spreads, so I trade large numbers of contracts. At RH I do not have to pay a per-contract fee, which at other firms comes to maybe 50 cents to 65 cents per contract. Not having to pay that fee can save me hundreds of dollars on any given spread.
They will be shutdown down. They target people with no clue offering matching deposit up to a certain amount. I saw one of there salesman speaking to a group of young people in park.
RH has salesmen? No way they will be shut down - selling to Muppets is what Wall Street is all about.
RH seems like a hustle on an epic scale. Selling order flow is a huge deal. Just consider the time line of what I would want as the hustler. Get a huge number of people making small amounts, and not from me. Prepare my algors while this is happening. Wait for a froth period and start alogs for that. Wait for a pull back, and start the second set of algor. Etc. Knowing the order flow and having HFT algor ability, sounds a lot like being a specialist on the floor. BTW: I had 3 Bank CD for banks going under in 08. 100K per CD. When the bank failed, I had the money from the FDIC the next business day. Faster than settling a trade. I was VERY surprised, Just a data point.