Re:Robinhood stock trading app confirms $110M raise at $1.3B...
by pfarnsworth on Wednesday April 26, 2017 @12:37PM
(#14204570)
They are doing the exact same thing that other brokers do. The difference is they are trying to drive the trading fees down to zero and hope they can make up revenue on all the other avenues, like selling order flow. I don't know if that's a sustainable model or not, though. They need to deal with a lot of fraud associated with their platform which takes revenue from the top line.
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Re:Robinhood stock trading app confirms $110M raise at $1.3B...
by harryh on Wednesday April 26, 2017 @12:39PM
(#14204599)
Indeed you are correct and I think that's great. I just think it makes sense for the retail customers who use Robin Hood (like the OP) to have the realization that they are the "unsophisticated investor" in this transaction. And hence, if they're trading multiple times a day, they are probably not making a great financial decision.