Well, they are growing fast so it's expected I guess. I bet for every customer who is complaining about losses there's another thanking them for preventing them from booking a loss
How is RobinHood able to make money on offering options trading commission free? How do they overcome even the exchange fees? I would think there would be a lot of customers who would buy 1 option or spread and then close it as soon as they have a $1 profit. Then continue doing that all day long.
Maybe they don't go to exchanges. Maybe they internalize (with help of HFTs). Dumb order flow is priceless.
"Robinhood, the trading app that has risen in popularity due to its no-fee brokerage business, faced significant outages with its options trading services Wednesday, …" It is statements like that that make me cringe. Call me old-school, but there is something to be said for having a tower of steel at your side with a fiber connection to the net for trading, directly connected with wires and not involving radio frequencies through the air, along with a POTS line as backup for calling the trading desk to execute trades. Big difference between that and a "trading app" on a smartphone, in my mind.
If their back end crashes nothing you can do about it. Keep in mind that a tech provider can easily separate VIP customer from your avg joe. It's only fair as far as allocating resources is concerned.
I don't condone it, but we live in a world of limeted resources. I believe someone mentioned that IB has different levels of customer support based on account size. Makes perfect sense even though I m on the disadvantaged end of that
This is the main reason I stay away from things like RH. Trading off a smartphone app (other than as an emergency measure to manage/close positions in the event of major system failure) is for video game addicts who are bored of Angry Birds or Farmville, not for serious professionals who treat trading as a business.
Dude, it's like totally free! You can do your research on TOS but send limit orders via RH. In case of emergency hedge via TOS or whatever. Front end is not the important part ... Backend is where the magic happens. They are the future of retail brokerage. Soon you will have no choice unless you do lots of volume.