Robinhood Trading Exposed: Steal from the Poor and Give to the Ultra Rich - Katusa Research
katusaresearch.com
A cautionary tale for new users. Because of its simplicity, Robinhood has quickly become the go to trading platform for a generation of new investors.

This is a good read, but the most important bit is this: Robinhood is able to offer commission free trading because they essentially skim money off of every trade you make. This is called frontrunning. It's complicated, but essentially they (via third party market makers) will execute your trades at a little above (or below) the best price and then pocket the difference.

This is a crime, and they've been caught and fined in the past, but how else are they going to make money?

Since many people here are excited about the Gamestop fiasco (everyone is making money now, but even more people will be badly hurt when this is all over) I thought it would be good to emphasize this.

To reiterate ROBINHOOD STEALS FROM THE POOR AND GIVES TO THE RICH

The wealthy hedge fund investors that Re getting pwned right now are getting multibillion dollar bailouts, that's not going to happen to unlucky retail investors when this is all over.

  • star_wraith [he/him]
    ·
    4 years ago

    Jfc this isn't the storming of the Bastille. It's putting the screws to one small hedge fund in a sea of them. It's the equivalent of forcing the largest car dealership in Dayton, OH to close.

    • 234567890987654 [none/use name]
      ·
      4 years ago

      It's literally more effective than any movement you've been a part of in your lifetime and likely will go on to be a part of, so let's not downplay it as if our movements have done something.

      • star_wraith [he/him]
        ·
        4 years ago

        I'm gonna assume you are not including rhe BLM protests in there, right? Because... that would really be something to suggest this is more effective than the BLM protests. And Occupy was 100X more impactful than this is going to be. If you can't recognize the broader effects that came from Occupy - framing economic issues as the 99% vs the 1%, a concept Americans did not think of before then; if we don't have Occupy we don't have Bernie or AOC - then I think you're really missing some perspective here.