/biz/ - Business & Finance

>Robinhood isn't the worst thing to happen to online trading, but they market their service as a free/no-commission product, which has the effect of pushing trade volume through the roof. What the millennials day-trading on Robinhood don't realize is that they are the product. Robinhood is well on their way to making hundreds of millions of dollars in cash income by selling their customers' orders to the HFT meat grinder. High-frequency traders are not charities. The only reason high-frequency traders would pay Robinhood tens to hundreds of millions of dollars is that they can exploit the retail customers for far more than they pay Robinhood. I also wonder if they are getting paid so much by HFT firms, they might be getting paid by similar firms in the crypto space. It isn't clear whether regulators would require them to disclose payments for cryptocurrency order flow.

You're gonna get a lot of shit for this here. Robinhood has been paying people to post their daily "trading" shill threads for over a year now. They're here.

>>11030739
>>11030740

Goddamn. Is there any way to win any more?

>>11030705
isnt this obvious? when will retards learn that nothing ever comes free in this world.
its the same thing with facebook desu.
>hnnng ill just give you all of my data, make messages using your service, organise events on your site but still be "le mad and schocked" when i find out you are using my data that i gave to you! how dare you!

This isn't new, any retail broker knows that "uninformed" flow (eg. idiots) are gold, because you can trade with them and get no adverse selection.
They aren't cheating you really, if you traded through any other broker you would see the same result. They just make money because they bet (correctly) that most people who trade through them don't know what they're doing.

>>11030705

and this matters because?

>>11030740
youre stupid
Robinhood shills made the original stock market threads but were scared away long ago

>>11030705

So not to sound like an autist, but is this article saying they're essentially selling trade history? Kind of like facebook or Google selling data to advertisers?

>>11030740
I know, right?
I used to point out the same shit and get absolutely crucified for it.

>>11030705
>>11030739

>literally savings thousands of dollars a year on commissions
>he thinks that this is somehow going to make me mad

no fucks given

>>11030852
>ur stoopeed

Robinhood paid shill detected.
Do they pay you per post or per hour?

>>11030879
Are you even old enough to have a stock broker account? Are you saying you pay commissions like a littol cuck?

>>11030899
What's it like to wagecuck for an online startup shill? Must feel horrible knowing that you wont even make a career out of it.

>>11030793
>when will retards learn that nothing ever comes free in this world
Never>>11030899

>>11030910
I literally am not though
You just dont know anything about /smg/
Probably because youve never had a stock broker account

>>11030928
>oh shit theyre onto me
>better deflect with some gay meme

ROBINHOOD = PAID SHILLING

>>11030940
>he thinks a successful company like Robinhood actually gives a shit about a Mongolian basketweaving forum
imagine being this delusional

>>11030846
This. Kek. Fucking redditors man. Fuck off op.

>said fuck it im gonna try robinhood
>have pending dollars
>havent invested yet
>see this thread
Fuck.

>>11031202
>28 million people browse 4chan every day
>Marketing doesn't care about it

Oh Anon

>>11030705
I was going to buy Bitcoin here last week, but there's an embarrassingly obvious formatting error in their Terms of Service.

I was about to buy and it had me reread through their terms. There's a part in Section 2 that mentions who is authorized to move your funds, saying to see Section 13. Turns out there is no Section 13. It goes straight from 12 to 14.

Dumb fucking millennials. Can't even invest in a company that can hire one decent fucking copy editor.

>>11031271
>T. Le redditor who thinks everything is an advertisement
>haha nice try marketing suits I have ad block!!

>>11030705
Oh no, I guess Ill go back to paying 5 dollars a trade now.... fucking idiots.

>>11030740

So should i open a brokerage with my Chase account instead? they started offering brokerage account services not to long ago

>>11030705
Duh? Only morons didn't know this is how it works. When you don't pay for a product, you ARE the product.

>>11031715
No grow a pair and get on a real brokerage like TD Ameritrade. Chase's brokerage is a joke

>>11030846
that means high frequency trading firms are trading against all users of robinhood

>>11031771
no wonder they all post shit returns

>>11030705
Who gives a fucking shit? You can put up a ticker on CNBC that broadcasts each of my orders along with my name and address and I'd do it for free trades, if there was no Robinhood.

This is the only platform where you can do whatever you want tradewise and not even have to think about commission, which opens up SO many possibilities. It's completely revolutionary. Wanna short the Nasdaq with SQQQ for 45 minutes and then get out? Go ahead and do it, with as much or as little capital as you want, and it doesn't matter, because it won't cost you $10 just to make that move.

Do you have any idea how much power zero-commission trades give to a trader with a small bankroll, who can risk tiny amounts and learn the ropes would being eaten alive by commissions?

Not exaggerating, Robinhood is the greatest thing to happen to retail investors since online trading itself. It's not exactly TD Ameritrade in terms of features, but it's slick, light, easy, and just all-around awesome. In fact, anyone who isn't already signed up for it now is a brainlet.

only way you get slaughtered is if you do options or day trading daily, buy and hold still works

>>11031338
They might skip 13 because muh unlucky number

>>11032541
This.

HFT has no power over long-term positions.

And to be honest, I don't really understand what the edge could be even against short-term ones if you're a small-timer. What are they going to do, dump enough AMD to actually lower the price just because you, personally, put in your little $320 to buy 10 shares? What are they, bogs?

(Yeah that's right, $320 bearcunts, you see what I did there? $50 EOY.)

shitposting aside, what business advice can we gather from this thread?
>build your business around "free"
>gather data to sell it privately
>let the cognitive dissonance of your victims turn them into useful idiots defending your cause

>>11030767
Pay the commissions instead of being a nigger

>>11030705
I bought the Robinhood is free meme until I realized they break limit orders on purpose, at least for free Robinhood users. Robinhood wants you to put in a 5 percent above price market order then they keep the 5 percent to "protect you from market volatility".

>>11030857
no, they are saying users are getting worse prices than they would otherwise.
Assume that the current ask structure on TSLA is as follows:
11 $286.1
10 $285
Scenario A:
Chad wants to buy 10 TSLA, limit order $286. No HFT bullshit, he is smart enough to use a good broker.
His order takes the existing order for $285 per stock, he pays $2850 + $0.01 in fees.

Scenario B:
Brainlet wants to buy 10 tsla, limit order $286. He uses robinhood because 'no fees'.
Robinhood sends his order through a hft firm.
Hft algorithm buys 10 TSLA at $285 for ITSELF, then sets an ask for 10 TSLA at $286.
Only then Brainlet's order is executed. Total cost $2860.

As a result, Brainlet paid $9.99 more than Chad for the exact same stock with the exact same market situation. Multiply by bigger orders and more customers and you get billions of profit for HFT firms - taken directly from Brainlets' pockets.

>>11032936
What's this "$0.01 fee"?

Chad will pay at LEAST $4 for commission, depending on the broker. Where's his commission in your scenario?

And yeah, fine, if you're throwing $2,800 into the trade, the commission is not terribly significant.

But if you're a small-timer buying 1 share instead of 10, investing $280 rather than $2800, and want to be somewhat active with trades at that kind of size, $4-$6 commissions will eviscerate your account in short order.

RH allows poorfags with $2-5K total to play the stock market at microstakes, even create diversified portfolios, without being devoured by commissions that are massively out of proportion to the position sizes. This opportunity has never existed before in the history of trading.

If muh HFT eats .3% of the price, fine. That's nothing compared to what commissions will do to a small-time account, even one that's doing very little trading.

Seriously, is this thread some kind of coordinated Robinhood FUD?

>>11033194
>had will pay at LEAST $4 for commission
Interactive brokers has $0.005 per share (min $1) fixed or $0.0035/share (min $0.35) + fees from other exchanges.
So $1 in this case

>>11030705
Thanks for posting dude useful information.
Ps. for the crypto traders here don't think the exchanges don't sell you to shitcon whales either.

If I’m a newbie to buying stock what should I use instead of Robinhood?

Also, the people who say this doesn't matter are retarded.
For every penny you save on commission you lose more because the High Frequemcy traders can front run you and thus cut into your possible gains...It's quite simply a hidden fee. Brainlets I swear... or marketers?

>>11033889
And not only can they front run you they have a way better view of the overall market, because they get info of ALL traders.

Why does Robinhood make you give the username and password of your bank account when other companies don’t?

Lol you guys are idiots defending this. Go read the book Flash Boys. Understand how useless it is to trade against high frequency trading bots (plenty of videos too). Ignore the Robin shills. They are probably paid. Blockchain is the only chance the average Joe has nowadays stocks are shit.

>>11033861
Interactive Brokers if you're young

>>11033984
Lmao crypto is even worse. Buy and hold still works in stocks.

>>11030705
Anyone who didn't realise the "helpful" daily robinhood biz thread was a big advertisement.... I don't know what to say to you.

>>11033984
Watching this now thx

https://www.youtube.com/watch?v=CkkQkMlaZpc

>>11030705

i play with oanda and fubon.tw

>>11030705
>brokers take the other side of your trades and scalp spreads
Nothing new. Not going back to $7 a trade just to save two cents.
>>11030914
>implying paid brokers don’t do this
They do, and they charge you for the pleasure

>>11032520
>Do you have any idea how much power zero-commission trades give to a trader with a small bankroll?
None, and that's the whole point.
RH is selling you a whopper of a story: namely that you have "just as good a shot as the big boys", as long as you're saving pennies on every trade with them.

The fiction here is that you ever had a shot, if that's your bankroll size. But keep buying that meme.

Shills stopped bumping the thread lol

lmao robinhood is literally zoomer tier

>>11033984
i've read Flash Boys
I've also lost like 12 cents to HFT frontrunning on Robinhood
These things make me an expert

So as an expert, let me advise you: Place limit orders on Robinhood and you won't get HFT fucked like you do with "market" buys. EZPZ

>>11034448
>paid brokers don’t do this
Sell you on the idea you're getting something without paying commission for it?
Correct, only half assed web apps do that.

>>11032642
Deluded. If you look into amd's earning potential the next 2 years it's clear they can't support even the current price in 2 years of massive success. Enjoy being dumped on by Soros

>>11032936
Isn't that outsourced frontrunning and illegal?

>>11031459
If you dont like 4chan so much why dont you try signing up for square space and make your own personal website for only the low price of $20 a month