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"The SEC’s order officially censures Robinhood for its actions, fines the firm $65 million, and requires that the company work with an independent consultant to
by inthewoods 6y ago
"The SEC’s order officially censures Robinhood for its actions, fines the firm $65 million, and requires that the company work with an independent consultant to ensure that henceforth it will satisfy its duty of best execution."
So, could this mean that Robinhood's business model just went bust? If they are getting the majority of their revenue from, and they will now be required to provide, presumably, some form of execution that is closer to best execution, then the other firms they are trading with will lower the money that RH receives, no? Naturally it may not matter - they are a SV darling and have quickly made Schwab et al look like dinosaurs.
- ludamad 6y agoProbably not. It looks like overall, they can make the same amount as a normal firm, just indirect instead of direct, and still have "best execution"
- frockington1 6y agoTheir interface pales to anything else. Download TDAs think or swim platform for a look at what could be. The only piece Robinhood does better is the SV gamification that lures investors who won't notice their orders are off
- dQw4w9WgXcQ 6y agoAs a huge ToS fan, Robinhood did the gamification so well it forced TD/ToS to add better (simpler) PnL features to their apps. And there really wasn't anything special about their main graph either, it's just simple.