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A comment on Robinhood Is Set to Raise at Least $200 Million in New Funding.

Re:Robinhood Is Set to Raise at Least $200 Million in New Fu... by warp_factor on Friday May 24, 2019 @07:57PM (#20006266)
They make me extremely nervous. Most people I know that use Robinhood seems to use it as they would play dices in Vegas. They have no ideas on the stock fundamentals or why and how the prices change. Most of them are playing a big amount of their savings too which is extra concerning.

What makes me even more nervous is that Robinhood seems to deliberately cater to those crowds of uneducated emotional day traders.

I said this before but they seem to become the "facebook of finance" with the same "break things and go fast" mission. I would never use them for any significant amount of money. That being said, I use them occasionally for options because the fees of traditional brokers are such a joke (20$ typically to sell and buy).

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Re:Robinhood Is Set to Raise at Least $200 Million in New Fu... by el_cujo on Friday May 24, 2019 @11:40PM (#20006967)
Those risks are present in the market in general, independent of robinhood. Should a platform be discouraged because its benefits don't discriminate between fools and people who know what they're doing?
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Re:Robinhood Is Set to Raise at Least $200 Million in New Fu... by Traster on Saturday May 25, 2019 @07:01AM (#20008295)
I don't know what it's like in the US, but in most countries gambling is very highly regulated for good reason. Buying stocks on the stock market with little to no information is basically gambling, the difference is that you have no idea what your odds are, often the cash out terms are unclear and the broker has no financial restrictions on letting you bet more than you can afford.

In fact, I know in the US you need to be an accredited investor for some times of investment for exactly this reason - it is so easy to get ripped off.

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Re:Robinhood Is Set to Raise at Least $200 Million in New Fu... by cosmodisk on Friday May 24, 2019 @07:59PM (#20006279)
The idea of beimg able to trade stocks quickly is appealing, however this is a slower version of say trading,which is as difficult as it can possibly get. Ability to buy and sell stock often is a death kiss for 99% of amateur traders.
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