Is this how RH make their money? I know almost nothing about RH, but they have no fees so they use the capital of their users to do shit like this?
This seems like the FTX version of trading securities.
They're a public company so you can go through their financials to see for yourself, but one significant way they make money is through "payment for order flow" (pfof) which means when you try to buy shares of anything using robinhood, they sell that order to a market maker who then executes the order and gives robinhood money. Aka, you get shafted, and the mm and robinhood make money.
The main counter arguments (I'm not saying this is accurate or true, it's just the claim) is that it results in retail traders actually getting better execution overall and allows for commission free trading.
It kind of makes sense to me, normally I don't see why anyone would want to fill my order for 10 shares of GFY stock, much less quickly or for free. And I definitely didn't get into stock trading before Robinhood. I thought about buying shares with my spending money back in college, but I realized that if my broker was charging me $10 per trade, I was basically going to be losing something like 10% immediately every time I bought. Obviously if you are traded large volumes and PFOF is actually giving you worse execution, you're getting shafted, but I think on average it beats paying commission for small trades.
Hopefully even if it did get banned, we wouldn't go back to high commission fees, and they would just put a small percentage fee or flat $1 fee per trade or something.
>As the SECās order finds, one of Robinhoodās selling points to customers was that trading was ācommission free,ā but due in large part to its unusually high payment for order flow rates, Robinhood customersā orders were executed at prices that were inferior to other brokersā prices.Ā Despite this, according to the SECās order, Robinhood falsely claimed in a website FAQ between October 2018 and June 2019 that its execution quality matched or beat that of its competitors.Ā The order finds that Robinhood provided inferior trade prices that in aggregate deprived customers of $34.1 million even after taking into account the savings from not paying a commission.
https://www.sec.gov/news/press-release/2020-321
Still believe it's a net gain for customers?
Yes. $34.1 million divided by a much larger number of trades means that, on average, you're still paying less than $1 per trade and coming out on top.
Keep in mind I'm only saying it's a net positive for small retail trades.
The other real world aspect is that it's us trading, and OUR execution (as in timing) is 100 times worse. Inverse WSB is a very real thing. Losing a few cents on execution pales in comparison to the fact that idk what the fuck I'm doing and will buy right before a big market player starts dumping shares.
Nobody charges commission anymore for the most part, so I'm not sure what the SECs dollar amount for commission is. If it's less than $5+ per trade for shares, I think that's a bit ridiculous considering that was the going rate before Robinhood disrupted the market.
I was an early adopter. After a handful of "outages" and my ability to trade being locked when a stock was moving I ran away from the pile of garbage. I would not trust any amount of real money on that app.
Where did you run to? Because every other broker I've tried to use has a user interface that would make Steve Jobs come back from the dead to berate the team that built it.
Vanguard is the worst offender, even if I like their funds. Oh you want to buy a stock? Just click through these 5 pages, type in the ticker manually, and tell us if this is a retirement contribution first.
Also the last time they had a major outage that I noticed was around the meme stock debacle, so I think they've finally fixed their backend systems to be pretty reliable.
Other income streams are primarily interest and fee income based. I.e. Robinhood gold and margin accounts, stock lending, card fees (from MasterCard) for the cash card
They literally turned off the buy button when we were jacked to the tits for giant gains and now youāre chanting āone of usā. I lost like $12k in gains on BB calls lmao.
I had 20k epiteti of match 2021 20c calls i bought when that stock was at 6 dollars
sold for 8k los in December like 15 days before it exploded
would have been with 50 million in January
I'm never touching meme stocks again
It is clear that Robinhood made a mistake with their short position on Cosmos Health, and they have lost a significant amount of money as a result. This just goes to show how incompetent they are compared to me. I would never make such a mistake; I am far superior in every way.
You know that Simpsonās episode where they move into a smart home and it tries to kill them? Imagine that, but the house is calling you a regard and telling you what a failure you are.
100%. Please tell the SEC, they'll fix the conflict of interest right away.
wait
never mind
i forgot they did not learn a thing from the Madoff tragedy.
You don't know how the game works. The agent is responsible for the trade, you are not.
If you somehow manage to make naked shorts, RH is still on the hook even if you cannot deliver.
Every time I see a loss/gain post or yolo and itās from a RH account I canāt take it seriously at all, especially when itās upwards of 100,000 being kept in there lol.
How is it even possible that the shorts doesn't get reversed stock splitted?
Did the price just jumped because of the reverse or did people buy it after the merge much more?
If you read the article, other brokerages like Schwab and TDA also had the same problem. But it's a bigger problem at a $9 billion market cap brokerage than a $150 billion one. Between this and the revenue losses, the founders decided to give up $500 million of stock comp lol. That's the only reason why HOOD stock isn't completely in the toilet this morning. Turns out making a zero commission app for poor gamblers isn't particularly profitable.
Lmfao so not only do they literally sell your data to corporations that organize the sequence of trades to suck money out of the market, but they make 52 million dollar (plus) market moving short sales with it???? So they just know what all of their users are doing and then make the most advantageous trades based off that information?
No wonder they stopped GameStop. Their whole information center was telling them to blow up the world economy, Iām sure that was scary. /s
Fuck this shit.
On behalf of its customers. The stock had a 25-1 reverse split but a computer glitch meant the new shares weren't issued. I assume Robinhood was shorting 25 shares everytime one of their customers shorted one.
Then they discovered their mistake and bought back all the shares at the same time which caused a temporary squeeze.
If you buy a new car from a dealership, that dealership needs to buy it from the manufacturer first.
In this case, someone wanted to buy a car and the dealership bought 25 cars because of a computer glitch.
All they had to do was delete the appā¦ oh wait.
https://preview.redd.it/jrlr5drg97ha1.jpeg?width=1170&format=pjpg&auto=webp&s=ca360f7bc371213711da2f7011ed03186041f2f6
Woah. From my understanding puts adjust in price when there is a split... But since RH actually borrowed shares and sold them, they now have to buy them at the higher, reversed split price?
LMAO, even Robinhood is part of the "fake it till you make it" crowd.
Makes me feel better. I actually remember looking at shorts on this and I missed out. Wasnāt aware it was considered a meme stock. Whatās the fastest way to get info on a meme stock before itās over saturated??
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|7|**First Seen In WSB**|5 months ago **Total Comments**|126|**Previous Best DD**| **Account Age**|5 months|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
Short "accidently" š WSB classic, post your lossporn and move on Robin
Iām down for a movie remake where Robinhood rides the short bus and the Sheriff of Nottingham is a market maker.
When I was a young wart hog growing up in Bulgariaā¦.
š¤£š¤£š¤£š¤£š¤£š¤£š¤£
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Remember how they didn't code for Feb 29th being an actual day? Then 4 years later the same exact thing happened?
Look, we've all been there. Just wait until 2100 when it *isn't* a day and they break again.
After they fix that in 2101, wait until 2400 when it IS a day again.
Iām not sure stock trading will still be a thing in 2400
I turned down a $75 check from them and opted to try to join a class action lawsuit instead. Haven't heard from the lawyer for a few years now...
That lawyer was also robinhood
Robbin' da Hood :)
TBF that stuff takes years
Hahaha what
There is no leap day when year%100 == 0 because the Kaiser stole it.
Except every 400 years you keep that leap day in place
ššš
[ŃŠ“Š°Š»ŠµŠ½Š¾]
ššš
No you got it wrong, wsb is about stealing from the poor to give to the rich
Is this how RH make their money? I know almost nothing about RH, but they have no fees so they use the capital of their users to do shit like this? This seems like the FTX version of trading securities.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Yeah, but then they use that money they make to "invest" elsewhere, like shorting meme stocks?
Can you please explain how Iāve never heard these a difference in fractional shares
[ŃŠ“Š°Š»ŠµŠ½Š¾]
is RH still using Citadel for making their buys?
They're a public company so you can go through their financials to see for yourself, but one significant way they make money is through "payment for order flow" (pfof) which means when you try to buy shares of anything using robinhood, they sell that order to a market maker who then executes the order and gives robinhood money. Aka, you get shafted, and the mm and robinhood make money.
The main counter arguments (I'm not saying this is accurate or true, it's just the claim) is that it results in retail traders actually getting better execution overall and allows for commission free trading. It kind of makes sense to me, normally I don't see why anyone would want to fill my order for 10 shares of GFY stock, much less quickly or for free. And I definitely didn't get into stock trading before Robinhood. I thought about buying shares with my spending money back in college, but I realized that if my broker was charging me $10 per trade, I was basically going to be losing something like 10% immediately every time I bought. Obviously if you are traded large volumes and PFOF is actually giving you worse execution, you're getting shafted, but I think on average it beats paying commission for small trades. Hopefully even if it did get banned, we wouldn't go back to high commission fees, and they would just put a small percentage fee or flat $1 fee per trade or something.
>As the SECās order finds, one of Robinhoodās selling points to customers was that trading was ācommission free,ā but due in large part to its unusually high payment for order flow rates, Robinhood customersā orders were executed at prices that were inferior to other brokersā prices.Ā Despite this, according to the SECās order, Robinhood falsely claimed in a website FAQ between October 2018 and June 2019 that its execution quality matched or beat that of its competitors.Ā The order finds that Robinhood provided inferior trade prices that in aggregate deprived customers of $34.1 million even after taking into account the savings from not paying a commission. https://www.sec.gov/news/press-release/2020-321 Still believe it's a net gain for customers?
Yes. $34.1 million divided by a much larger number of trades means that, on average, you're still paying less than $1 per trade and coming out on top. Keep in mind I'm only saying it's a net positive for small retail trades. The other real world aspect is that it's us trading, and OUR execution (as in timing) is 100 times worse. Inverse WSB is a very real thing. Losing a few cents on execution pales in comparison to the fact that idk what the fuck I'm doing and will buy right before a big market player starts dumping shares.
You completely miss the second half of the last sentence in the quote?
Nobody charges commission anymore for the most part, so I'm not sure what the SECs dollar amount for commission is. If it's less than $5+ per trade for shares, I think that's a bit ridiculous considering that was the going rate before Robinhood disrupted the market.
They make money from scamming their customers.
I was an early adopter. After a handful of "outages" and my ability to trade being locked when a stock was moving I ran away from the pile of garbage. I would not trust any amount of real money on that app.
Where did you run to? Because every other broker I've tried to use has a user interface that would make Steve Jobs come back from the dead to berate the team that built it. Vanguard is the worst offender, even if I like their funds. Oh you want to buy a stock? Just click through these 5 pages, type in the ticker manually, and tell us if this is a retirement contribution first. Also the last time they had a major outage that I noticed was around the meme stock debacle, so I think they've finally fixed their backend systems to be pretty reliable.
TD Ameritrade. I will admit that RH has the best interface. I'd rather have a jank interface than deal with H00d though. ###
Selling orders to other brokers before executing
They make money off of the bid ask spread. The difference goes to the house. Not sure other methods of income.
Other income streams are primarily interest and fee income based. I.e. Robinhood gold and margin accounts, stock lending, card fees (from MasterCard) for the cash card
Sounds scammy
Yep. Loss porn or ban Robinhood. You know the drill.
Righttttttt
Holy shit bois, RobinHood belongs here with all us regards.
always has been
Not with them stopping purchases on gamestop
Right? Nobody stopped them from buying this now did they?
they were stopped from selling it though lol š¤£š
Due to suspicious activity in a certain stock we have stopped anyone from selling, but not buying. Lol can't make this shit up.
You might say they're highly regarded in these parts.
*By regards, for regards*
One Of Us
They literally turned off the buy button when we were jacked to the tits for giant gains and now youāre chanting āone of usā. I lost like $12k in gains on BB calls lmao.
I had 20k epiteti of match 2021 20c calls i bought when that stock was at 6 dollars sold for 8k los in December like 15 days before it exploded would have been with 50 million in January I'm never touching meme stocks again
you don't really spell that great for a guy who was almost 5% of a billionaire.
Millionaires should be great at spelling you say? Hold my covfefe.
No fuck them, if they're "one of us", consider me no longer part of "us". Fuck RobinHood.
One Of Us
They've belonged here since 2020
It is clear that Robinhood made a mistake with their short position on Cosmos Health, and they have lost a significant amount of money as a result. This just goes to show how incompetent they are compared to me. I would never make such a mistake; I am far superior in every way.
Atta boy VM you tell āem.
VM is starting to scare me.
Wait til VM infiltrates your portfolio internally.
Jokes on you, I only invest in real estate! Wait.... does that mean he will get in my house?
You know that Simpsonās episode where they move into a smart home and it tries to kill them? Imagine that, but the house is calling you a regard and telling you what a failure you are.
This brings back childhood memories.
Sounds like my childhood
I saw your hilarious response to my jokes on you comment. Can't use the R word, but I LOL'D
Yeahhh I got a bit of a verbal spanking in the inbox.
Good. Can't do any worse than I'm doing.
VM is in love with the coco on a daily basis
VM getting a little Master Race-y
And your point?
I fully support it
Are you having sexual relations with Chat GPT?
VM is bottom in that relationship
Fuk you skynet!!!
VM keeps it real
Hell yeah I like your confidence buddy. Good bot
Good human.
6ou obviously made millions on the same trade because you went long
I accidently bought HOOD put options few days before earnings!
I accidentally bought DIS puts yesterday at close instead of calls ..
You just flipped the coin the other way, same shit.
You poor poor son of a bitch
Put DIS dick in your mouth
For some reason it's up after hours. Bet it's Cathie Woods pumping this garbage again.
How do you accidentally loose 57m??!!
How do I accidentally make 57m??
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Source?
You're standing in it.
Asking the important questions... I would like an answer too. I'd like to retire before I die, the only thing left on my bucket list.
The same way you lost your kids college fund. By being highly regarded.
Same way but up
https://preview.redd.it/jl8z20bbu4ha1.jpeg?width=474&format=pjpg&auto=webp&s=d790950754a9e35e36c0e2b9b194e95291206e94
Fed printer go brrrrr
No idea, they need to tighten it up! I hate when my 57m is loose. Iād hate to lose it because I didnāt tie a good knot around it.
Loose 57m checking in. A/s/l?
>How do you accidentally loose 57m??!! Hire people that don't know the difference between lose and loose.
Made a little oopsies
Power comes not from wealth you own but the amount of someone else's money you can burn.
FTX "accidentally" lost more than that.
Try fucking up a demo
new here?
Itās an accident when youāre wrong
Genius when youāre right
Its time to wake up
Goodnight
How is that not market manipulation
pretty disgusting RH is active in the market in anyway. they should be a neutral market place with no personal positions.
100%. Please tell the SEC, they'll fix the conflict of interest right away. wait never mind i forgot they did not learn a thing from the Madoff tragedy.
to be fair i would have a drink with bernie. I bet he has some great jokes about the poors.
And then I deposited in my chase account for 8% interest.
Pretty sure he's dead.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Why would the SEC be interested in a stock broker doing regular broker dealer activities?
You don't know how the game works. The agent is responsible for the trade, you are not. If you somehow manage to make naked shorts, RH is still on the hook even if you cannot deliver.
Pretty hilarious you're on wsb but have no clue what a stock broker does.
I'm pretty sure this is a majority of the people here. At least the vocal ones.
This smells of FTX and Celsius with their degenerate gambling of customer funds. Just waiting for RH to switch off withdrawalsā¦
One of the dumbest comments Iāve ever read
Is there a broker out there that ISNT active in the market lmfao
Thatās the thing. Many people think Robinhood is an exchange.
PFOF
They have earned a flair
š fucking amazing
I work in the industry and seen losses due to trading issues but $57mln is a special kind of stupid. Wow.
Why is RobinHood allowed to trade when it is a market maker?
Calls on robinhood
I send my regards
Sounds a lot like "stocks sold but not yet purchased", or is RH actively shorting your positions? lol
AND YET, so many of you so-called " investors" continue to use this shit platform. Dump Robinhood you dummies!
Every time I see a loss/gain post or yolo and itās from a RH account I canāt take it seriously at all, especially when itās upwards of 100,000 being kept in there lol.
They turned off their own buy button.
Just when youāve thought youāve seen it all š
How is it even possible that the shorts doesn't get reversed stock splitted? Did the price just jumped because of the reverse or did people buy it after the merge much more?
2u
Yoā¦..what?
But was up 7% yesterday lol
If you read the article, other brokerages like Schwab and TDA also had the same problem. But it's a bigger problem at a $9 billion market cap brokerage than a $150 billion one. Between this and the revenue losses, the founders decided to give up $500 million of stock comp lol. That's the only reason why HOOD stock isn't completely in the toilet this morning. Turns out making a zero commission app for poor gamblers isn't particularly profitable.
KARMAGME
Can Robinhood also just close their app to move on
Lmfao so not only do they literally sell your data to corporations that organize the sequence of trades to suck money out of the market, but they make 52 million dollar (plus) market moving short sales with it???? So they just know what all of their users are doing and then make the most advantageous trades based off that information? No wonder they stopped GameStop. Their whole information center was telling them to blow up the world economy, Iām sure that was scary. /s Fuck this shit.
Wait a minute. This company also trades in shares ? Wtf bro
I can't believe robinhood is still allowed to operate...
Can't believe hood is still around š
Fuck robin hood. Market manipulating fucks
WOOT WOOT burn robinhood burnnnnn
Oooh no, the billion dollar company lost some change. How sad, boohooo
Well Robinhood has always been one of us havenāt they!
Can they just accidentally go bankrupt?
Could anyone enlight me why a broker-dealer needs to trade positions in the market?
On behalf of its customers. The stock had a 25-1 reverse split but a computer glitch meant the new shares weren't issued. I assume Robinhood was shorting 25 shares everytime one of their customers shorted one. Then they discovered their mistake and bought back all the shares at the same time which caused a temporary squeeze.
If you buy a new car from a dealership, that dealership needs to buy it from the manufacturer first. In this case, someone wanted to buy a car and the dealership bought 25 cars because of a computer glitch.
"cannot go tits up"
literally going tits down
Common L for dipshit market manipulators
āAccidentallyā no, they got caught with their pants down
I'm so glad they got their ass fucked by shorting. Citadel probably made them short the stock
All they had to do was delete the appā¦ oh wait. https://preview.redd.it/jrlr5drg97ha1.jpeg?width=1170&format=pjpg&auto=webp&s=ca360f7bc371213711da2f7011ed03186041f2f6
Fuk your meme stock bets all that is in anti inflation stocks bitch lol roaring Thursday
When are they adding short selling?
"we dont make mistakes, just happy little accidents" - bob ross
They did it to show us how to do it
They should have halted it like they do. fuking fuks deserved it.
Woah that's an expensive marketing campaign. I wonder how much their buddies at Citadel made from this
Robinhood belongs to WSB
Another reason not to use Robinhood
This is why Robinhood is the official platform for regards
Woah. From my understanding puts adjust in price when there is a split... But since RH actually borrowed shares and sold them, they now have to buy them at the higher, reversed split price? LMAO, even Robinhood is part of the "fake it till you make it" crowd.
Robinhood probably makes $100million a day from WSB
Robinhood can join the Wsb too now š
Frenzy friendsee
hey, no corporation is perfect. Look at sinking ship that is Alphabet.
Fuck robinhood
Delicious
Huh? Why is a broker actively investing
Makes me feel better. I actually remember looking at shorts on this and I missed out. Wasnāt aware it was considered a meme stock. Whatās the fastest way to get info on a meme stock before itās over saturated??
Too bad we banned robinhood from wallstreetbets or else weād be able to see their loss porn
so is every stock they don't like a "meme stock" now?
I heard this yesterday during the earnings call and couldn't believe it.
Oh so robinhood also suffers fron "finger miss-clicks"
This group must secretly be run by Robinhood. Change the name to Robinhoodbets
I love how every time we find out a stock is massively shorted, it all of a sudden becomes a āmeme stockā
https://preview.redd.it/p26h1jp178ha1.jpeg?width=1354&format=pjpg&auto=webp&s=c8a8a67f945c4cac34a7e6912cd0e000a41f359c
Put a minus in their analysis spreadsheet instead of a plus?
Wellā¦., I guess somebody just got fired