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RH was the number one downloaded app just a couple of days ago. They must’ve gotten at least a couple of hundred thousand new accounts. Even at $1,000 average d
by hehehaha 6y ago
RH was the number one downloaded app just a couple of days ago. They must’ve gotten at least a couple of hundred thousand new accounts. Even at $1,000 average deposit, you’re looking at hundreds of millions to cover for a day or two. That said, I highly doubt they’re in trouble. JPMorgan/Fed likely have RH covered.
- nrb 6y agoBut does that explain why they didn’t just prevent trading on these names unless your cash balance is settled and nothing on margin? They already have a mechanism for that.
- ev1 6y agoImagine half of your userbase, especially almost every single new user onboarded this week, explicitly only wanted to trade on specific symbols, and you don't allow them to do so for 2-3 weeks (ACH settling period) at all.
- TheKarateKid 6y agoWell like OP said, then just restrict people whose cash didn't settle yet or require 100% margins like other brokers did. Even if I believed this excuse, then RH is still greedy for signing up users they don't have the finances to support. They could've closed signups.
- nrb 6y agoSeems better than holding hostage the balances of existing customers who already had cash settled accounts? This was a lose/lose for them, new signups won’t stick around anyway now and they’re going to absolutely bleed existing users.