Trading with $0 commissions -- "Robinhood"

E

earlyexit

I'm surprised that no one posted a thread about this. There is a new brokerage opening up in Silicon Valley that claims it will allow trading with no commissions.

It was started by a couple of prior high frequency traders. They haven't officially launched yet, but is worth a read.


At this point, we can only speculate on what the limits/requirements are to get zero commissions. I'm sure there will be many.

https://www.robinhood.io/
 
Quote from earlyexit:

I'm surprised that no one posted a thread about this. There is a new brokerage opening up in Silicon Valley that claims it will allow trading with no commissions.

It was started by a couple of prior high frequency traders. They haven't officially launched yet, but is worth a read.


At this point, we can only speculate on what the limits/requirements are to get zero commissions. I'm sure there will be many.

https://www.robinhood.io/
More...


So what, I trade the Forex market with $0 commissions too, that does not mean that my Forex broker is starving, he makes his money with the spread.

There is no Robin Hood in this business, somebody has to pay something...
 
Quote from xelite777:

So what, I trade the Forex market with $0 commissions too, that does not mean that my Forex broker is starving, he makes his money with the spread.

There is no Robin Hood in this business, somebody has to pay something...
More...

I guess the "so what" is that it hasn't been done before in equities (as far as I know). I thought about them making the spread, however, I don't think this is the case. Not from what I've heard (unofficially of course).
 
Once you read the fine print, you'll realize how limited it actually is:

1. It's for listed stocks only. No futures, options, or forex.
2. It's currently only available to California residents.
3. Trades can only be placed via mobile devices.
 
Quote from Baron:

Once you read the fine print, you'll realize how limited it actually is:

1. It's for listed stocks only. No futures, options, or forex.
2. It's currently only available to California residents.
3. Trades can only be placed via mobile devices.
More...


As far as I know, they are working on all 50 states. There will be an API available, so you will be able to trade by other means. However, the API is one of the ways they plan to make money. So there will be a fee for that.

No margin trading yet either.


BTW, this is really geared towards non traders that want to make an investment now and then. Young people with small accounts. Not sure the company will survive, but thought it was worth passing along.
 
Quote from earlyexit:

I guess the "so what" is that it hasn't been done before in equities (as far as I know).
More...

Well I heard that Wells Fargo gives you 100 trades a year without commissions. Not sure what the fine prints are though.

As I said, the trader always ends up paying commissions and fees, in one form or another, there is no free lunch in this world...
 
Quote from xelite777:

Well I heard that Wells Fargo gives you 100 trades a year without commissions. Not sure what the fine prints are though.

As I said, the trader always ends up paying commissions and fees, in one form or another, there is no free lunch in this world...
More...

I guess the argument is. Even if you are paying $9.99 at Ameritrade, they are still making you pay in other ways. They just screw you an extra 10 bucks.
 
You must log in or register to reply here.
Back
Top