Stock-trading app Robinhood was rejected by 75 investors

Re:Stock-trading app Robinhood was rejected by 75 investors by JumpCrisscross on Sunday May 13, 2018 @02:19PM (#17060194)

Brokerage is a book business. Robinhood is collecting a book of young customers (whom traditional brokerages have not been successful attracting) who frequently trade and use margin (which makes them lucrative).

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Re:Stock-trading app Robinhood was rejected by 75 investors by adrr on Sunday May 13, 2018 @05:24PM (#17061124)

They don’t have enough capital to trade frequently on margin accounts. $10 billion assets and 3 million users puts the average account has little over $3k. E*TRADE has $300 billion for the same number of users.

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Re:Stock-trading app Robinhood was rejected by 75 investors by KKKKkkkk1 on Sunday May 13, 2018 @04:29PM (#17060884)

Sounds like the business model is to accumulate a base of customers and then to sell the business to some kind of Bank of Wells Fargo who will then proceed to phase out the no-fee service.

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Re:Stock-trading app Robinhood was rejected by 75 investors by CamTin on Sunday May 13, 2018 @02:22PM (#17060208)

Can you explain what the phrase "book business" means?

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Re:Stock-trading app Robinhood was rejected by 75 investors by JumpCrisscross on Sunday May 13, 2018 @02:26PM (#17060226)

> Can you explain what the phrase "book business" means?

You accumulate a “book” of end customers, usually from a particular demographic, for the purpose of selling to someone who doesn’t have that demographic. Versus flow (e.g. exchanges) or asset accumulation (e.g. ETFs) businesses.

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