4 ms·
Is it just me or is the involvement of VCs here really strange? If Robinhood was anything like a traditional broker (or bank/broker combination) Venture Capital
by habosa 6y ago
Is it just me or is the involvement of VCs here really strange? If Robinhood was anything like a traditional broker (or bank/broker combination) Venture Capital firms would not have been anywhere on the list of places to get emergency money.
Although I'm glad that RH has driven the price of trading down for everyone, this is one more reason why most people should keep their money with a more boring financial institution.
Reminds me of when RH launched a "checking" account and claimed it had deposit insurance and then in about one day regulators said "absolutely no it does not":
https://www.forbes.com/sites/ronshevlin/2019/01/02/the-robinhood-checking-account-was-doomed-to-fail/ https://www.forbes.com/sites/ronshevlin/2019/01/02/the-robin...
- tuna-piano 6y agoMy first reaction to any news from a large company that people question the legality of is "I'm sure they have a team of highly qualified lawyers who signed off on this plan." But then I remembered about the RH checking account that clearly wasn't approved...
- bombcar 6y agoMost "real" brokerages can get access to billions if not trillions of cash for overnight/three days for settlement purposes. They say WallStreetBets is "4chan found a bloomberg terminal" - Robinhood is Silicon Valley masquerading as a real broker; perhaps even the Juicero thereof. I only have a small amount of play money there, and I continue to draw it down. TD Ameritrade and Vanguard serve as my real brokers. Side note: I kinda wonder what Bogle would have to say about all this if he were still alive; probably would have killed him.