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by potions
1963 days ago
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Robinhood's legacy is commission free equity trades at pretty much every single retail brokerage, whether they survive as an app or not. There is a reasonable argument to be made that whatever minute price slippage customers might experience(which I believe isn't even supposed to be legal due to NBBO and Reg NMS? not an expert) due to payment for order flow is much less than the $10 commissions at deep discount retail brokerages and certainly than the $50 trades in the old days of calling up your friendly local rent seeking broker -- for typical robinhood sized equity transactions. Robinhood has plenty of problems but they directly caused investors to be able to trade for free @ fidelity, vanguard, schwab, etc which is obviously a boon to consumers. Also imo at least robinhood is somewhat up front about like 'the market is a zany gambling game' with their UX. Contrast with IBKR and TOS who heavily market their stuff to Serious Portfolio Dads With 4 Monitors and then ALSO do sheisty manipulation appearing stuff to "protect their clients from volatility." RH targeting a smaller computer and being colorful doesn't make it any worse than other discount retail brokerages shoving derivative trading platforms at unsophisticated retail. |
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I really do believe Robinhood is a net positive in the world because it has provided the lower classes the ability to more easily buy a small sliver of the means of production.
Most people lose money when they first start trading and investing. A lot of people are going through that the first time right now, but losing money in the market is the first step to making money in the market, and eventually I think this commission-free environment (paired with approachable apps) will build a great deal of financial competence among the general population.