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I don't think Robinhood is doing anything wrong. They are making things easy, which it should be. They still need to use the NBBO price, so it's not like they a

I don't think Robinhood is doing anything wrong. They are making things easy, which it should be. They still need to use the NBBO price, so it's not like they are making things more expensive for traders. But I've seen this exact same pattern during the dot com boom. Lots of people making a ton of money day trading. This usually culminates in a heavy crash and many people are completely wiped out. /r/wallstreetbets is hand-in-hand with Robinhood and wsb more than RH is really making a huge game out of this, and it's crazy. I know people that have gotten sucked in by wsb and started buying crazy amounts of options just to lose all their money. If there is a big crash, I hope RH ends up IPO'ing before this, otherwise all their investors and employees will be holding onto worthless stock as trading volumes goes to zero, like it did after the dotcom-bust.

totalZero 6y ago
Their platform has had outages during periods of extreme market volatility, and they allow unsophisticated traders to take option risk that they may not readily understand. /r/wallstreetbets doesn't have any fiduciary responsibility to anyone. RH does.
- NovemberWhiskey 6y ago
  Is RH actually acting as an investment adviser in these transactions, or just a discount brokerage? If the latter, generally not a fiduciary, I think?
  - totalZero 6y ago
    You are correct. I should have used the term "suitability." What I was trying to communicate is that RH could be liable in a situation where it approves people for margin or L2 options accounts who have no business accessing those kinds of products. RH may benefit from increased order flow, but is not permitted to cultivate order flow that is clearly inappropriate for its clients.