Re:Robinhood: At a Play Store Near You
by larrythedog on Thursday August 13, 2015 @01:23PM
(#10055775)
You're right on all counts. The point I was trying to make is that it caters to unsophisticated investors, and this platform indirectly encourages them to invest without understanding the risks.
No matter how successful they're, I'd argue that it is a drop in the bucket compared to high-frequency trading. I cannot see it hurting the markets.
> Also, the only real reason a commission-free account would be helpful is if you're trading pretty frequently or in very small amounts.
Why? It saves you $10 even if you only trade once every year. It is MORE helpful with many trades, but it is helpful regardless.
> pay $10/trade [..] and have access to some mediocre portfolio analysis, risk analysis, and research tools
Why can't people get these from third parties? A lot of other services provide these tools and information. This de-couples the bundling and allows people to shop around.