Stock trade app Robinhood raising at $5B+, up 4X in a year

Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by justonepost on Thursday March 15, 2018 @09:56PM (#16598022)

What people don’t realize is that these 0$ trading commissions just make it up in their routing of the transactions. You’re not going to get the best price.

Use interactive brokers if you want a good price. Flat fee is higher but the trade routes are great.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by Blackthorn on Thursday March 15, 2018 @11:03PM (#16598261)

> You’re not going to get the best price.

That's FUD (and I'm an Interactive Brokers user). That sort of routing flashes your trade to groups before it hits the exchange, and they have the option to take it. By regulation they can only take it at or better than top of book price. If they don't take it, it will hit the exchange.

Look, Interactive Brokers is a great brokerage. Very usable software and API, best in class commissions and margin rates, and you get direct routing and their smart router works pretty good too from what I understand. But don't oversell it by bashing RH.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by bcherny on Thursday March 15, 2018 @10:04PM (#16598042)

I mean, average portfolio size for Robinhood users is probably in the $1k-10k range. How much does your 22 year old cousin care whether she pays $325.60 or $325.62 for a share of TSLA? For individuals it’s negligible, but for the HFT firms whose kickbacks make up most of Robinhood’s revenue, this adds up.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by austenallred on Friday March 16, 2018 @02:52AM (#16599055)

Yeah, worst case scenario use a limit

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by barnabes on Friday March 16, 2018 @08:14AM (#16600082)

Do limits guarantee a price?

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by rifung on Friday March 16, 2018 @10:37AM (#16600937)

No but they put an upper bound on it which is likely what people would care about anyway

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by prklmn on Thursday March 15, 2018 @10:07PM (#16598053)

I can assure you that most robinhood users don’t have the slightest idea of what trade routing means. Also, I doubt there are many accounts placing big enough trades routinely for routing to have a material impact.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by SEJeff on Thursday March 15, 2018 @10:44PM (#16598187)

And this is what limit orders are for. Disclaimer: I'm a robinhood user, who also works for a large high frequency trading firm. You're spot on (well that and robinhood gold is how they really make their money).

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by jnordwick on Friday March 16, 2018 @12:33AM (#16598648)

I used to work with the founders, Vlad and Bijou. The are smart and very entrepreneurial guys.

I actually assumed they were selling order flow. They have a ton of dumb money that many firms would die to interact with.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by SEJeff on Friday March 16, 2018 @10:07AM (#16600722)

I'm sure you're right, like with most things in this industry!

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by justonepost on Friday March 16, 2018 @03:39PM (#16603443)

Limits don't work. Market might not cross your price.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by tanderson92 on Thursday March 15, 2018 @10:50PM (#16598216)

Is this really true if you're submitting passive limit orders? If I'm not even asking for the best price, how can I be taken advantage of.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by anilshanbhag on Thursday March 15, 2018 @10:18PM (#16598100)

This is really speculation. There is no reliable source to confirm this. I have used Robinhood for over 6 months now and never observed the trade price deviate from what is listed on Schwab and IB.

Also, for most people who trade 100-1000 shares it doesn't really matter.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by justonepost on Friday March 16, 2018 @03:41PM (#16603455)

50K * 0.001 is $50 dollars.

Better to just pay a flat fee and get better routing.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by Mizza on Thursday March 15, 2018 @10:45PM (#16598191)

I believe that RH is actually making their money off of the interest on spare cash in accounts. You can do limit orders in the app if you are particular about price. I don't have a source for this, other than I like the app.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by kasey_junk on Thursday March 15, 2018 @10:35PM (#16598155)

https://www.interactivebrokers.com/download/4Q_2017_IB_ORDER...

IB doesn’t sell their order flow but they do take payment from dark pool operators & liquidity providers.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by tehlike on Thursday March 15, 2018 @11:59PM (#16598522)

This. interactive brokers provide the best user experience for most portfolios. Very useful app.

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Re:Stock trade app Robinhood raising at $5B+, up 4X in a year by austenallred on Friday March 16, 2018 @02:51AM (#16599051)

Eh, use a limit and you’re fine

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