[Feature request] Broker Tipping

In his AMA Mark Cuban discussed the issues facing the success of RH and how it’s biting them now:

Link to AMA: https://www.reddit.com/r/wallstreetbets/comments/lawubt/hey_everyone_its_mark_cuban_jumping_on_to_do_an/

Link to Question:

"The challenge is not opening the brokerage, the hard part is dealing with success. What fucked up RobinHood is that they didnt have enough cash to handle the number of customers they had, their margin loans and the requirements from the DTCC. They have now raised more than $5 billion and that may not be enough. And its not like they are charging anything for their trades.

The question becomes whether or not buyers would pay a commission or even a tip to a broker for doing their trades…[goes on to discuss bitcoin]"

I just wanted to create a discussion on this idea. I’m happy with how vocal FT have been supporting customers but it’s frustrating to be unable to purchase stocks that I deem to be at a huge discount.

Whilst I do not wish to pay for trades, as for me this is a barrier to entry for small investors. I do like the notion, as with Deliveroo etc of adding a tip option going towards FT.

Interested to hear others thoughts.

RH are an anomaly because they found a way to be very, very profitable through selling order flow and grow very fast (hence finding billions in funding overnight). Changing their business model to anything else will be quite a left turn. In the end if there are alternatives similar to FT who make their profit from the customer end, or more likely through products like options in the US, surely customers will make their own mind up. It’s not a shock this, WSB has been laughing at RH users for years for getting a raw deal.

I wouldn’t fancy a tipping structure here but in the USA they’re used to it in everyday life. The FX fee seems perfect for freetrade because I rarely notice it, I know some people like to track every penny.

1 Like