RobinHood gives 5% interest on uninvested cash!

[Quanto]

The brokerage firm RobinHood gives 5% interest on uninvested cash, says this independent review page:
https://www.brokerage-review.com/online-broker-reviews/robinhood-review.aspx

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[S2007S]

You just found this out today????

They have been offering interest on cash for quite some time.

 

[Quanto]

You just found this out today????

They have been offering interest on cash for quite some time.

Yes, I am a late comer, had much else to do...

 

[maxinger]

It seems like there is not much hope in this company.

Peak price was 85.
It has been moving between 8 and 13 for many months.

 

[Quanto]

It seems like there is not much hope in this company.

Peak price was 85.
It has been moving between 8 and 13 for many months.

But what else do you expect from HOOD: just look its MktCap of 9.253B (ie. has meanwhile become a coloss, ie. a titan which can't make any big jumps anymore). But Beta still 41% above the mkt, and the consensus on the 1y target is about 12.42 only; so long gone is the cited split-second peak of 85 (?) many years ago; the average Highest High seems to have been around $50.

 

[S2007S]

I wouldn't doubt if Robin hood in the next 2 yrs gets bought out.

 

[S2007S]

Yes, I am a late comer, had much else to do...

Well I hope you had some time to capture these 5% interest rates ....

Seems wallstreet already begging and crying for lower rates from the fed. Some anticipating 3 4 5 even 6 Rate cuts. ...no need to cut rates anytime soon. Let the people with savings enjoy 5% on their money for a decade or 2 or 3. No need for any cut rates as everyone knows wallstreet just praying for rate cuts to keep markets propped up.

 

[S2007S]

It seems like there is not much hope in this company.

Peak price was 85.
It has been moving between 8 and 13 for many months.

When you say hope are you referring to seeing a return on investment in HOOd shares? Or them going bankrupt ?

 

[Quanto]

I wouldn't doubt if Robin hood in the next 2 yrs gets bought out.

I doubt it would get cleared by the regulators, but I could be wrong b/c the buying of TD Ameritrade by Schwab was no problem at all, and TDA was/is even much bigger than HOOD.

 

[Quanto]

Well I hope you had some time to capture these 5% interest rates ....

Unfortunately Nope :-( Had something else to do, didn't pay any attention to the outer World... :-(

Seems wallstreet already begging and crying for lower rates from the fed. Some anticipating 3 4 5 even 6 Rate cuts. ...no need to cut rates anytime soon. Let the people with savings enjoy 5% on their money for a decade or 2 or 3. No need for any cut rates as everyone knows wallstreet just praying for rate cuts to keep markets propped up.

I think it's big politics: these high interest rates are still cheaper for the government.
As I see it the govt has 2 choices:
1) borrow money from the big bad banks
2) borrow money from the people
Currently the govt favors #2 as it still comes cheaper than borrowing from the big bad banks...