what do discount brokerage firms think about Robinhood?

[sss12]

Honestly since I'm trading in 10-50-100 share lots and use limit orders I'm not not bothered by the fills, if you trading thousands of shares then yes it's something to question.

I don't understand this opinion. If the fill is .25 off what it should be you just "paid" $25 for your "free trade" on 100 Sh


At some point in life, you realize there is no free lunch. The "older millen" are staring to get this, the younger ?

 

[sss12]

Great article, they mention how long can a sustained model like this last referencing that it's been tried before and has failed every time ...this time I believe it could stay due to the fact of how many people use the service and how they have a simple platform with not much overhead compared to other brokers out there...there wasnt really much of a mobile platform back in the day, today I make over 99% of my trades on the go away from the computer.

Since opening my account in early February I have already made 45 trades!!!!

I have saved a huge $312.75 by using Robinhood over E-Trade or ameritrade.
$312.75!!!
Once you get the taste for free trading youll never want to pay commissions ever again....
Watch one of the big brokers come in and buy them out..... they are closing in on 5 million accounts in only a few years of being established. That's pretty insane!!

Do you know how much you sacrificed in slippage/bad execution ? Not saying you have to any large degree, but unless you know, your $312 Is just a nominal number not a saving.

Think about it, do you think you are getting optimal fills off a PFOF model ? You may not think it matters because your nominal is so small (your statement) but it is the % that you are leaving on the table that matters for your "free trades".

 

[S2007S]

I don't understand this opinion. If the fill is .25 off what it should be you just "paid" $25 for your "free trade" on 100 Sh


At some point in life, you realize there is no free lunch. The "older millen" are staring to get this, the younger ?

Maybe I don't understand what you are referring to, but if XYZ is trading at 75.00 x 75.01 and I put a limit order to buy at $75.00 and it excutes at $75 how is that a bad fill? I only place limit orders. Is this XYX stock price at $74.75 on another platform??

 

[sss12]

Maybe I don't understand what you are referring to, but if XYZ is trading at 75.00 x 75.01 and I put a limit order to buy at $75.00 and it excutes at $75 how is that a bad fill? I only place limit orders. Is this XYX stock price at $74.75 on another platform??

Did you ever look at the bid/ask on time and sales at the time of your fill ?

And yes, a limit order to buy at 75 is "75 or better". A good broker will give you the price improvement or at least partial if it is below 75.

RH is not the fictional literature character of rob from the rich and give to the poor....actually they rob from the millenial's who think it's FREE !

 

[ajacobson]

The guys who use it on our desk - as I mentioned - are pretty savvy institutional traders using it for the own account. Their experience has been as good or better than they see in their other electronic accounts. Reg NMS and the ITS system pretty much assure no trade throughs - I would read the 606 again and see if their destinations are any less attractive than where your brokerage house is sending their flow.
Get the 10 year up to 4 1/2 to 5% area and you'll see a handful of the majors go to a version of free trading.

 

[sss12]

The guys who use it on our desk - as I mentioned - are pretty savvy institutional traders using it for the own account. Their experience has been as good or better than they see in their other electronic accounts. Reg NMS and the ITS system pretty much assure no trade throughs - I would read the 606 again and see if their destinations are any less attractive than where your brokerage house is sending their flow.
Get the 10 year up to 4 1/2 to 5% area and you'll see a handful of the majors go to a version of free trading.

I still have a hard time believe a savvy institutional trader is using RH, for many reasons.

But, more interested in your view on the 10 yr at 450-500. While all hell will be breaking, why will majors go free trading, it is mostly asset management fees anyway ?

 

[S2007S]

Did you ever look at the bid/ask on time and sales at the time of your fill ?

And yes, a limit order to buy at 75 is "75 or better". A good broker will give you the price improvement or at least partial if it is below 75.

RH is not the fictional literature character of rob from the rich and give to the poor....actually they rob from the millenial's who think it's FREE !

I personally don't know...you can play with the app yourself....figure it out and let the board know. Not going to cost you much...open an account with a $1000 and buy a few shares and see how it fills. Report back....all I know is I place a limit order for a price I want and I get it ....I pay zero commission. I don't see what the problem is.

 

[sss12]

I personally don't know...you can play with the app yourself....figure it out and let the board know. Not going to cost you much...open an account with a $1000 and buy a few shares and see how it fills. Report back....all I know is I place a limit order for a price I want and I get it ....I pay zero commission. I don't see what the problem is.

Evidently.

 

[ajacobson]

"I still have a hard time believe a savvy institutional trader is using RH, for many reasons.

But, more interested in your view on the 10 yr at 450-500. While all hell will be breaking, why will majors go free trading, it is mostly asset management fees anyway ?"

Don't believe anything you don't want to believe. A big profit center is i rate spread. At Schwab the fee free ATM card was costing us over $100 million a quarter. The firms are not wedded to trading revenue. A ton is i rate spread and there hasn't been any. If you look at Schwab's share price it is more highly correlated to the 10 year - rather than volume.

 

[Saltynuts]

Reading this thread has me a bit perplexed. Can brokers literally fill their prices at something other than the bid/ask in the marketplace? Can they really fill it at a worse price and keep the difference? Wholly crap that is bad if so.

Can IB do this? I don't think they can based on, I think, when you place an order it doesn't run through a broker, it seems to be immediately submitted electronically to the applicable exchange - for example, on slow-moving stocks, when I place a market order, I *immediately* see it go through and hit the shown best bid or ask, as applicable. I doubt IB is maintaining orders out there on tons of stocks.

Thanks!