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What would "they" do if they were enemies of Robin Hood? Short Robin Hood stock? Or send contract killers?
by herewegoagain2 6y ago
What would "they" do if they were enemies of Robin Hood? Short Robin Hood stock? Or send contract killers?
- TeMPOraL 6y agoIf by "they" you mean Wall Street - pull the data sharing contracts that underpin Robin Hood's business model in the first place. If by "they" you mean WSB - for now, they just nuked RH's app in Play Store, but they're already calling for a class action lawsuit.
- Scoundreller 6y agoDon’t just pull RH’s, pull all brokers’. Paying a commission doesn’t protect you from anyone maximizing profits. All the discount brokers sell order flow. > Schwab earned 1.4% of revenue from payment for order flow, TD Ameritrade about 8.4%, and ETRADE about 6.1%. They all make half or a lot less of their revenue from commissions. > The contribution to revenue across the discount brokerages is minimal: 6.8% at Schwab, 28% at TD Ameritrade, and 17% at ETRADE. > Interactive Brokers is the one standout, largely because it caters to high-volume professional and semi-professional traders; it makes 49% of revenues on commissions. All RH did was run a tight ship on costs and cut commissions to zero. In theory, commissions could go less than zero. https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...