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I've been a long time critic of RH but you can see the value to their business. They mainly target millenials who are largely shut out of the investment market
by hangonhn 5y ago
I've been a long time critic of RH but you can see the value to their business. They mainly target millenials who are largely shut out of the investment market because of their poor financial situations. Tiny portfolios and game-ified trading is a good way to capture that audience. Millenials won't stay poor forever so RH's customer base is actually quite valuable. A more mature company can either acquire RH for those customers or RH itself can transform into a more stable and reliable operation with a large customer base that will acquire more assets over time.
- hef19898 5y agoIMHO targeting financially less than robust people with a gamified solution is a real problem. An not a feature.
- hangonhn 5y ago100% agree with you. Not at all condoning their business practices. I'm just saying their business has value because of their large customer base that they've already acquired. Its a customer base that becomes more valuable over time as millenials become wealthier and acquire more assets.
- Grim-444 5y agoI don't really buy this argument, since you can sign up at most traditional brokerages for free, with no minimum balance, and zero or almost zero trading fees on most trades. There's absolutely no more barrier to entry than with Robinhood.
- hangonhn 5y agoAgree with you on that. I don't see any advantages to RH at all but they were the first to really target that group and has already acquired them as users. That group of users is worth a lot and will be worth even more over time.
- kyawzazaw 5y agoRobinhodd started that push, no? They were comission based before