True, fair take - but would you really consider a 2DTE position "HFT"? I run ethereum bots, IMO that is not HFT and Robinhood should at minimum have account representatives to manage client relations to be allowed to operate.
But they don't, because of everything that you said. They are lightweight by design, they are not for large investors, they are made for the retail space.
You can see this echoed in their featureset - for example, no historical date on options prior to purchase date, and only visible once you've purchased the contract. With Etrade or other institutional brokerages, you have access to full historical data for any contract or stock you are looking into. You are able to educate yourself and make much smarter decisions, without leaving their app.
Granted, the Robinhood app is much smoother. They dont' have an iPad app though, which was another big con for me.
Robinhood is for the general public. The general public has always been fleeced in the markets. Always. And always will be. Read any historical book on the markets, the public is getting fleeced. If you want to complain about execution or products or relationships you should get serious and become a trader, in which case you’ll immediately stop using Robinhood. If it makes you feel any better, almost every time you’re being fleeced there is a professional trader on the other side of the trade laughing at this dumb schmuck just giving their money away.
Indeed. For what it’s worth I don’t think Robinhood intentionally created a product that can serve its users up on a platter. Robinhood’s platform can still be used in a way that creates a lot of value for disciplined value investors with long time horizons so long as they are careful with their order types. I think they’re just not watching their blind spots in an industry that thrives off exploiting blind spots, and their efforts to grow their product are outpacing their efforts at being market savvy.
I also agree with this - maybe a hint of doubt is cast by their sketchy history w/ Plaid and collecting transactional data. But for the most part, I think Robinhood did open the doors to a new era of retail investment not accessible ever before. They've just been eaten by the very market they've helped create.
I think you nailed the sentiment well, basically blind spots in an industry that thrives off exploiting them.
Agreed, I would not consider it HFT. But I would still say that if the execution is time critical (that is, if delaying the execution an hour or two is important), Robinhood is not the right platform to use.
But even with this caveat, RH should still have a reasonable business model. I think the vast majority of individual investors have most trades that are not time critical. For those folks, having investment options that they would otherwise be priced out of may be a good thing. My 2c.
But they don't, because of everything that you said. They are lightweight by design, they are not for large investors, they are made for the retail space.
You can see this echoed in their featureset - for example, no historical date on options prior to purchase date, and only visible once you've purchased the contract. With Etrade or other institutional brokerages, you have access to full historical data for any contract or stock you are looking into. You are able to educate yourself and make much smarter decisions, without leaving their app.
Granted, the Robinhood app is much smoother. They dont' have an iPad app though, which was another big con for me.