3 ms·
I still don't get how this is deemed 'screwing over'. Would the alternative of paying $11 in trading fees round trip on an order of 3 shares of Ford Motor Compa
by missedthecue 6y ago
I still don't get how this is deemed 'screwing over'. Would the alternative of paying $11 in trading fees round trip on an order of 3 shares of Ford Motor Company be preferable to the $0.01 in worse order execution a Robinhood user gets instead? The transaction fees only make sense when you start placing relatively big trades, something 99.99998% of Robinhood users do not and will never do.
What Robinhood has done is cleverly found a more cost-effective means to allow poor people to get invested, and disrupted a previously uncompetitive industry in the process. Yes their gamification of the UI is likely a bad thing, but most people seem to be viewing the order-flow situation backwards.
Remember, the alternative is not free trades. The alternative is more expensive trades.