News for hackers. Stuff that matters.
Re:Robinhood Will Retool Checking Product Following Scrutiny by SEJeff on Saturday December 15, 2018 @11:13PM (#18691706)
As explained to you in another HN post. HN makes their money via their margin accounts aka Robinhood Gold, and by selling their order flow, like many other brokerages do. It results in better execution for the clients (like myself) and a tighter spread. If it means I get a better price and someone else gets first dibs at the buy or sell side, I honestly don't care. You can use limits if you worry about getting "ripped off by the man".
Re:Robinhood Will Retool Checking Product Following Scrutiny by elliekelly on Saturday December 15, 2018 @11:29PM (#18691735)
I understand where their revenue comes from. But if they're doing the same thing as every other bank and not charging for trades what's making up the difference on their bottom line? It's not income. So it must be that they're avoiding costs that the rest of the industry is incurring. Like the cost of compliance.
Re:Robinhood Will Retool Checking Product Following Scrutiny by bonestamp2 on Sunday December 16, 2018 @12:54AM (#18691940)
Maybe they're not making up the difference on the bottom line... maybe they're equivalent to Walmart, running on a lean margin and hoping to make it worthwhile through volume, and the wall street banks are Saks, charging more and earning higher margins.