1Wk·

Robinhood: No trading fees, 24h trading, minimal spreads, 2% crypto bonus, staking, access to private firms and more

I find access to private companies particularly interesting. However, it is questionable when this will be rolled out on a larger scale and how extensive the access will be... According to the CEO, more will happen in the next few months.

There will also be at the beginning:

Access to popular US stocks and ETFs (>200 tokens so far, more coming soon), tokens also allow access to dividends
24-hour trading 5 days a week (probably 7 days a week in the coming months, as with crypto)
No trading fees, only a 0.1% fee for currency conversion to USD
Minimal spreads, even outside core trading hours
Staking on ETH and SOL
Perpetual futures (coming soon)
Transfer your cryptos to Robinhood and get 2% bonus payment (unlimited, but only until July 7, 2025)
Simple user interface and fast app speed

Trade Republic, Scalable & Co. should dress warmly in the coming months / years...

Have you downloaded the new Robinhood app (for Europe) yet?

10 Comments

GeldGenie@GeldGenie

1Wk

Instead, they offer unfavorable spreads, as they forward orders to market makers and earn their money this way.

No trading fee is correct, but the overall conditions are +- the same as other online platforms. Only the marketing is better and gamification in the app. Quasi the Temu for investments.

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The W.@thewolfofallstreetz

1Wk

@GeldGenie Why are the spreads unfavorable from the customer's point of view? Temu is correct from a cost perspective, but not from a price-performance perspective. Where do you get access to US equities 24/5? 2% for free on crypto transfers? Where can you (soon) buy private companies? Why is gamification bad if it increases user-friendliness?

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GeldGenie@GeldGenie

1Wk

@thewolfofallstreetz

Because PFOF deviates further from the mean than classic market access.

Why would I want 24/5 access? For skewed pricing? I think trading outside the volume times is nonsense - or I don't have/see any added value.

There is no such thing as a "gift", only cost distribution as marketing....

Private companies are available via PE firms that also know the current figures or corresponding funds.

Gamification encourages ill-considered investment. HOOD customers also seem to have lower profits and higher losses on average

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The W.@thewolfofallstreetz

1Wk

@GeldGenie The study only refers to options. This is where Robinhood makes most of its money - as well as with crypto. The turnover with shares is only around 6%... I view articles from 2020/21 with a bit of indulgence, as the media were all over Robinhood at the time, but fair point.

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The W.@thewolfofallstreetz

1Wk

@GeldGenie 1) In the end, it's about what the majority of (potential) customers want, your personal preference may be different. 24/5 and 24/7 are among the biggest customer feature requests. Crypto-Tech makes this possible. Other brokers have not yet been able to do this due to their infrastructure. 2) The payback period for an average Robinhood customer is on average <1 year. This makes it worthwhile to reach into your pocket and make matches when acquiring customers. Of course, you can decide for yourself whether the bill is worthwhile for you based on your user behavior. I think 2k for free with a 100k transfer is cool - I haven't seen that anywhere else in the industry. 3) I worked in private equity for a few years. As an investor, you have no insight into the investments of the funds. In addition, you only get minimal exposure and often the companies invested in are not particularly good. It's the classic PE business. You could possibly invest in SpaceX or Anduril via Robinhood (still unclear, but there should be more information on this in the coming months) - a completely different number. Of course the information is limited, but that's not the point. 4) Maybe, I don't have any data on this. I just see that the average Robinhood customer has doubled their assets on the platform in the last 3 years. However, this is mainly about yourself: for me personally, it's not a problem - on the contrary. Even if the average customer loses money, it is of little interest to me personally when choosing a broker. No other broker offers points 1-3) from a single source, or have I missed something?

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Super_Geroy@Super_Geroy

1Wk

@GeldGenie Which broker do you recommend?

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devnerd_daddy@devnerd_daddy

1Wk

Now let's ask the people who had tokenized shares on FTX. 😂

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GeldGenie@GeldGenie

1Wk

https://www.wsj.com/finance/investing/robinhood-touts-rock-bottom-fees-for-options-trading-then-come-the-hidden-costs-8d745bd8?

https://www.sec.gov/newsroom/press-releases/2020-321

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user5ca946a11b6a4278@user5ca946a11b6a4278

1Wk

I really wonder what the situation is with dividends. For example, if I buy MSTY, can I file an exemption order?

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The W.@thewolfofallstreetz

1Wk

@user5ca946a11b6a4278 Dividends seem to be normal, even for tokens. I have not yet been able to find anything on taxation. Presumably it is not paid automatically.

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