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A comment on Analysis: Robinhood protected from lawsuits by user agreement, Congress. Parent comment

Re:Analysis: Robinhood protected from lawsuits by user agree... by hehehaha on Saturday January 30, 2021 @01:34PM (#25971585)
To be honest, people will eventually return. RH is the cost leader by a wide margin and its very unique to its business model via data arrangement with Citadel. In aggregate, total savings they pass down to retail traders is in the billions. With options trading at all time high, savings for 2020 was likely in tens of billions.

Edit: upon looking at some aggregate data via OCC, appears I overestimated savings.

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Re:Analysis: Robinhood protected from lawsuits by user agree... by alasdair_ on Saturday January 30, 2021 @01:55PM (#25971816)
Almost every single broker offers commission-free trading now.

And some of them (Fidelity, Vanguard etc.) didn’t pull trading when it got volatile. They also have far more stable platforms.

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Re:Analysis: Robinhood protected from lawsuits by user agree... by DLay on Saturday January 30, 2021 @02:37PM (#25972204)
I think it’s also important to mention that Robinhood also has the most brain dead simple UI out of all the trading platforms I’ve seen.

The brokers you’ve listed have more complicated user interfaces than the casual trader would care to learn about. Fidelity and Vanguard also probably care way more about their reputations than to gamify their platform like RH does.

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Re:Analysis: Robinhood protected from lawsuits by user agree... by iaabtpbtpnn on Saturday January 30, 2021 @01:43PM (#25971677)
What costs are they leading in? Stock, ETF, and mutual fund trades cost nothing on all the major platforms. (Maybe not options, but most people shouldn't be trading options, as they all just learned.)
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Re:Analysis: Robinhood protected from lawsuits by user agree... by koolba on Saturday January 30, 2021 @01:47PM (#25971724)
Don’t Fidelity, E*TRADE, Ameritrade, and just about it everyone else have zero commission trades now?
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Re:Analysis: Robinhood protected from lawsuits by user agree... by TuringNYC on Saturday January 30, 2021 @01:52PM (#25971791)
Not on options
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Re:Analysis: Robinhood protected from lawsuits by user agree... by alasdair_ on Saturday January 30, 2021 @01:58PM (#25971840)
While technically true, I wonder if people care much about a $1 fee on an entire contract (100 shares).
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Re:Analysis: Robinhood protected from lawsuits by user agree... by ll931110 on Saturday January 30, 2021 @03:11PM (#25972520)
The fee can still be very significant, especially once you engage into complex options strategy (e.g. call spread / put spread / iron condor). That tends to trade in significantly larger quantity (e.g. you can have a 50x call spread), in which the fee is now $100 ($50 for buying a call and $50 for selling another call).
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Re:Analysis: Robinhood protected from lawsuits by user agree... by jb1991 on Saturday January 30, 2021 @02:56PM (#25972384)
Most of the time you'd be trading more than one contract, though. Say you want bet on cheap out of the money options, you could easily see a commission of $10 - $50 on a single trade if you buy up a bunch of them.
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Re:Analysis: Robinhood protected from lawsuits by user agree... by koolba on Saturday January 30, 2021 @02:35PM (#25972182)
I guess if you’re buying lottery tickets at $.01-$.02 per contract it’s be a 50-100% change in costs.
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Re:Analysis: Robinhood protected from lawsuits by user agree... by endisneigh on Saturday January 30, 2021 @01:39PM (#25971627)
I don’t use Robinhood so forgive my ignorance, but what savings are you referring to?
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Re:Analysis: Robinhood protected from lawsuits by user agree... by didibus on Saturday January 30, 2021 @01:51PM (#25971783)
That trading stocks on it and all of its features are free, no fees and no commission.
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Re:Analysis: Robinhood protected from lawsuits by user agree... by Tenoke on Saturday January 30, 2021 @03:12PM (#25972526)
You are still getting a hidden fee on most transactions due to the sold order flow. Rh itself earns 17 cents per 100 shares and 58 cents for options. The loss for the user is certainly much higher though and as the cost is hidden they likely make more trades.

https://www.google.com/amp/s/www.cnbc.com/amp/2020/08/13/how...

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Re:Analysis: Robinhood protected from lawsuits by user agree... by goatinaboat on Saturday January 30, 2021 @01:51PM (#25971774)
RH is the cost leader by a wide margin and its very unique to its business model via data arrangement with Citadel

It’s free right up until the point they decide to charge you 100% of your money.

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