6 ms·

Ah, shares of shares. Through Robinhood no less. Sounds like a great plan for the platform which has had how many comically massive mistakes over the past few m

Ah, shares of shares. Through Robinhood no less. Sounds like a great plan for the platform which has had how many comically massive mistakes over the past few months? Are they going to let r/wsb leverage these 100x as well? Don't get me wrong, I love some of what they're doing....I just don't trust them with my money.

frockington1 7y ago
Considering they have completely annihilated their reputation with anyone remotely paying attention, the only market left for them might be 18 year olds who can only invest $10 at a time
- everetm 7y ago
  That's a pretty toxic comment. Surely multiple banks and other software businesses have made mistakes but that doesn't stop the users from trusting their services. All this will blow over and people will forgive and forget. You don't need to age discriminant just because they make it easier to invest
  - frockington1 7y ago
    As a financial institution trust is everything. When they lied about savings accounts being SPIC insured, they lost a lot of credibility that will be near impossible to get back. And nothing against 18 year old, I also used Robinhood starting out. But once you have over a couple thousand invested, you need a bit more confidence in the company. This is without even going into the stupidity that was infinite leverage and the CEOs response afterwards. That is an entirely different level of incompetence that would need a novel to fully expand upon
  - deleted 7y ago
    [deleted]
- mhuston 7y ago
  > "Considering they have completely annihilated their reputation with anyone remotely paying attention" Can you elaborate on this a bit and/or share article(s)?
  - toomuchtodo 7y ago
    https://www.reddit.com/r/wallstreetbets/comments/aeqcvt/i_dont_know_when_to_stop/ https://www.reddit.com/r/wallstreetbets/comments/aeqcvt/i_do... (Failure of Robinhood's risk management systems) https://www.reddit.com/r/wallstreetbets/comments/dpnzup/i_recorded_todays_marketopen_and_the_instant/ https://www.reddit.com/r/wallstreetbets/comments/dpnzup/i_re... (Reg T violation) https://www.theverge.com/2018/12/15/18142319/robinhood-finance-startup-checking-savings-product-backtrack-criticism-cash-management-sipc https://www.theverge.com/2018/12/15/18142319/robinhood-finan... (Lying about their to be released cash management feature being SIPC insured that SIPC forced them to walk back)
bob1029 7y ago
I've been with Robinhood for over 3 years and I have had zero issues with my portfolio or any features around managing my account day-to-day. The only thing that tripped me up was the transition from Apex to their own clearing house, so I had some extra paperwork to file w/ the IRS during that transition year. I see a lot of people saying things like "I don't trust Robinhood with my money". I am curious what scenario you see unfolding with Robinhood that could result in loss of your assets. Especially scenarios impacting Robinhood uniquely. Are you aware that Robinhood, as well as virtually every other brokerage in America, provides SIPC insurance up to 500K USD on all (non-crypto) investment accounts? This is on-par with the same kind of protections you get with any FDIC-insured checking or savings account. In order to even qualify for this kind of insurance, Robinhood had to essentially sell its soul to the various auditors and regulators. Regulations around these kinds of businesses are incredibly stringent. You would probably feel a lot more comfortable with any arbitrary brokerage if you had to sit through one of their audits, or were simply made aware of how extensive it is. There is certainly a lot of "controversy" around Robinhood in the press lately (surely no competitor would stand to gain from running hit pieces against a zero commission broker), but from a purely academic standpoint, it is just noise and doesn't impact the ability of the firm to carry out its fiduciary duties in a reliable and consistent manner.
- kelnos 7y ago
  Not the parent you're replying to, but I don't think I'd say I wouldn't trust Robinhood with my money. As you say, they're a SIPC-insured, regulated entity. What I would say is that I just don't trust Robinhood as a company. They feel scummy to me, and their marketing and UX pushes practices that I would not consider good investment advice. I can only assume that pushing frequent trading (and poorly-described options trading) on unsophisticated investors makes more money for them. But it's likely at the expense of those investors. Even if I "know better" and could just take advantage of the platform as-is, I don't care to support that behavior. Take that and pile that on top of -- for example -- their misleading and factually incorrect announcement about their quickly-pulled cash management product last year... yeah, no thanks, I'll pass.
  - wefarrell 7y ago
egdod 7y ago
I need some deep out of the money calls on fractional shares at 1000:1 leverage expiring tomorrow to satisfy my personal risk tolerance.
- frockington1 7y ago
  As long as you put on a wolf mask and live stream market open
  - egdod 7y ago
    Guuuh
Lazare 7y ago
I don't have an especially high opinion of Robinhood, and I'll grant you that they've leaned into the "move fast and break stuff" mindset, and they've certainly made some comical mistakes. On the other hand, I still feel like it's a big jump to go from there to "...and so I don't trust them with my money". Have they lost anyone's money? Do you think they're in some real danger of shutting down and taking people's money with them? "These idiots keep failing to properly calculate margin requirements" is a pretty damning thing to say about a brokerage, but.... Brokerages are pretty heavily regulated. Why do you think your money wouldn't be safe?

frockington1 7y ago

Considering they have completely annihilated their reputation with anyone remotely paying attention, the only market left for them might be 18 year olds who can only invest $10 at a time

everetm 7y ago
That's a pretty toxic comment. Surely multiple banks and other software businesses have made mistakes but that doesn't stop the users from trusting their services. All this will blow over and people will forgive and forget. You don't need to age discriminant just because they make it easier to invest
- frockington1 7y ago
  As a financial institution trust is everything. When they lied about savings accounts being SPIC insured, they lost a lot of credibility that will be near impossible to get back. And nothing against 18 year old, I also used Robinhood starting out. But once you have over a couple thousand invested, you need a bit more confidence in the company. This is without even going into the stupidity that was infinite leverage and the CEOs response afterwards. That is an entirely different level of incompetence that would need a novel to fully expand upon
- deleted 7y ago
  [deleted]
mhuston 7y ago
> "Considering they have completely annihilated their reputation with anyone remotely paying attention" Can you elaborate on this a bit and/or share article(s)?
- toomuchtodo 7y ago
  https://www.reddit.com/r/wallstreetbets/comments/aeqcvt/i_dont_know_when_to_stop/ https://www.reddit.com/r/wallstreetbets/comments/aeqcvt/i_do... (Failure of Robinhood's risk management systems) https://www.reddit.com/r/wallstreetbets/comments/dpnzup/i_recorded_todays_marketopen_and_the_instant/ https://www.reddit.com/r/wallstreetbets/comments/dpnzup/i_re... (Reg T violation) https://www.theverge.com/2018/12/15/18142319/robinhood-finance-startup-checking-savings-product-backtrack-criticism-cash-management-sipc https://www.theverge.com/2018/12/15/18142319/robinhood-finan... (Lying about their to be released cash management feature being SIPC insured that SIPC forced them to walk back)

bob1029 7y ago

I've been with Robinhood for over 3 years and I have had zero issues with my portfolio or any features around managing my account day-to-day. The only thing that tripped me up was the transition from Apex to their own clearing house, so I had some extra paperwork to file w/ the IRS during that transition year. I see a lot of people saying things like "I don't trust Robinhood with my money". I am curious what scenario you see unfolding with Robinhood that could result in loss of your assets. Especially scenarios impacting Robinhood uniquely. Are you aware that Robinhood, as well as virtually every other brokerage in America, provides SIPC insurance up to 500K USD on all (non-crypto) investment accounts? This is on-par with the same kind of protections you get with any FDIC-insured checking or savings account. In order to even qualify for this kind of insurance, Robinhood had to essentially sell its soul to the various auditors and regulators. Regulations around these kinds of businesses are incredibly stringent. You would probably feel a lot more comfortable with any arbitrary brokerage if you had to sit through one of their audits, or were simply made aware of how extensive it is. There is certainly a lot of "controversy" around Robinhood in the press lately (surely no competitor would stand to gain from running hit pieces against a zero commission broker), but from a purely academic standpoint, it is just noise and doesn't impact the ability of the firm to carry out its fiduciary duties in a reliable and consistent manner.

kelnos 7y ago
Not the parent you're replying to, but I don't think I'd say I wouldn't trust Robinhood with my money. As you say, they're a SIPC-insured, regulated entity. What I would say is that I just don't trust Robinhood as a company. They feel scummy to me, and their marketing and UX pushes practices that I would not consider good investment advice. I can only assume that pushing frequent trading (and poorly-described options trading) on unsophisticated investors makes more money for them. But it's likely at the expense of those investors. Even if I "know better" and could just take advantage of the platform as-is, I don't care to support that behavior. Take that and pile that on top of -- for example -- their misleading and factually incorrect announcement about their quickly-pulled cash management product last year... yeah, no thanks, I'll pass.
- wefarrell 7y ago

egdod 7y ago

I need some deep out of the money calls on fractional shares at 1000:1 leverage expiring tomorrow to satisfy my personal risk tolerance.

frockington1 7y ago
As long as you put on a wolf mask and live stream market open
- egdod 7y ago
  Guuuh

Lazare 7y ago

I don't have an especially high opinion of Robinhood, and I'll grant you that they've leaned into the "move fast and break stuff" mindset, and they've certainly made some comical mistakes. On the other hand, I still feel like it's a big jump to go from there to "...and so I don't trust them with my money". Have they lost anyone's money? Do you think they're in some real danger of shutting down and taking people's money with them? "These idiots keep failing to properly calculate margin requirements" is a pretty damning thing to say about a brokerage, but.... Brokerages are pretty heavily regulated. Why do you think your money wouldn't be safe?