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In the simplest, likely potentially inaccurate explanation... Robinhood doesn't actually make the trades. They pay someone else to make the trades, add a small
by Pasorrijer 6y ago
In the simplest, likely potentially inaccurate explanation... Robinhood doesn't actually make the trades. They pay someone else to make the trades, add a small amount to the price, and that's how they get to 0$ trading price to the end user. The upstream party is refusing to do things, so Robinhood has no choice but to follow the rules that party set.
That's like, way over simplified but gets to the gist
[Edit cause spelling are hard]
- outoftheabyss 6y agoThen why not communicate that in a diplomatic way. Their business and user base is at stake
- Pasorrijer 6y agoWhen your marketing model is built entirely on sticking it to the man, how do you communicate that the man has you by the balls and you have no recourse because your business model is built on the man paying you off.
- vharuck 6y agoYou do this clearly, because if you don't give people a good explanation, they'll find one elsewhere. And the person giving that explanation probably doesn't care about preserving your reputation.