Re:Robinhood and Didi to Kick Off a Hot IPO Summer
by vkou on Friday June 11, 2021 @12:22PM
(#27475284)
That's because Robinhood had the bulk of the retail mania, and were thus the most affected brokerage.
Other retail brokerages, that were less popular with the WSB crowd never even stopped purchases of GME, because GME is was a small fraction of their trade volume - and thus, their collateral obligations did not grow much.
You are correct for not wanting to use them to trade, for two reasons.
1. If you are actively trading, you are almost certainly throwing away money. Don't actively trade. Just buy an index fund and forget about it.
2. If you are actively trading, and you are a serious, informed individual (which already excludes the overwhelming majority of people who were buying GME), and you want 24/7 uptime, you shouldn't use a discount zero-fee brokerage that's popular on WSB. They won't be able to guarantee that uptime when WSB decides to take one side of a huge trade.
Other retail brokerages, that were less popular with the WSB crowd never even stopped purchases of GME, because GME is was a small fraction of their trade volume - and thus, their collateral obligations did not grow much.
You are correct for not wanting to use them to trade, for two reasons.
1. If you are actively trading, you are almost certainly throwing away money. Don't actively trade. Just buy an index fund and forget about it.
2. If you are actively trading, and you are a serious, informed individual (which already excludes the overwhelming majority of people who were buying GME), and you want 24/7 uptime, you shouldn't use a discount zero-fee brokerage that's popular on WSB. They won't be able to guarantee that uptime when WSB decides to take one side of a huge trade.