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:
Quote:
"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.