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by madenine 1962 days ago
RH makes money by selling data to investment firms, not off individual trades/fees.

If their customers - the firms that pay them, not app users - see the RH platform as a threat to their business they could pull the plug[0]. Or if this prompts regulators to examine RH and similar products.

The risk isn't in the outcomes of options/trades; its risk to their business model.

[0] RH's customer are actually market makers, who by and large will be profiting heavily off of this.
1 comments
JumpCrisscross 1962 days ago
> If their customers - the firms that pay them, not app users - see the RH platform as a threat to their business

This point has been made repeatedly elsewhere but it bears repeating. Market makers are getting rich off this trading. Robinhood's customers are not hurting from this.

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madenine 1962 days ago
Point taken.

Still, as far as risk to RH is concerned - if this kicks off a change via their customers, regulators, or legal action the change is probably not in their favor.

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