The free stock-trading app Robinhood is taking all comers

Discussion in 'Wall St. News' started by Banjo, Mar 12, 2015.

  1. Banjo

    Banjo

  2. What are they offering and how reliable is it? Cheap commissions often cost people lots of cash, I can tell you how a $3.00 commission costed me $1500 on my option trade. We need more information what your offering, what's it all about?
     
  3. S2007S

    S2007S

    I have been reading about these guys for months. Its all free. But its a very basic trading platform that you basically use your phone to place trades with. Guess all this hype is getting all the teens involved ....have cell phone ...will trade....
     
    JesseJamesFinn likes this.
  4. i960

    i960

    Last I heard this didn't even have stop losses implemented. Also order flow selling up the wazoo. They may not make money on commissions but they sure as hell do on selling order flow and potentially internalizing.

    Nothing in life is free.
     
    JesseJamesFinn likes this.


  5. You learn the hard way everyone's not like IBKR, I threw out a Market Order like a idiot on MCD recently, bid and ask rapidly expanded, no they exploded on news Bid $1.50x$3.00 and guess where I got filled. Eventually all worked out and those contracts went to $6.00 but they were only worth $2.00 at the most, that cheap broker (It was me, myself and I who did that) did not even give any price enhancement. If you ask any of these Brokers, the bulk is made off "order-flow" because how else can they give you anything free? Price is great, order improvement is better, I would rather pay a $5 or $10.00 ticket if someone save's me $.20 or $.05 in price improvement on 20 to 100 contracts!

    Price enhancement is fading, I have over a dozen active brokerage accounts and after the SEC's investigation in to "Barclay's Dark Pools (Big Banks liquidity)", AMTD, ETFC, SCHW, Fidelity and "Fly-by-Night's $1 Buck-Chuck Executions" the lights shinning on "order-flow payments" has almost removed all the price enhancement were getting.


    Besides getting $50.904 for a order between $50.90 x $51.30, is anyone seeing the decrease in price enhancement?