Robinhood Discussion 🏹

Fresh off the Robinhood press today - they have developed and will be slowly rolling out their own clearing system!

I think this is a pretty incredible achievement for a startup and is definitely aligned to their clients’ interests.

Wonder if Freetrade have feature this in their own roadmap? Maybe 2020 after we’ve conquered Mars? :smile:


Interesting! Yeah I guess it would have to be very long term if Robinhood are only moving into it now…

I’ve seen ClearBank’s shaking up clearing in the UK banking market; whilst this is a different kind of clearing you can get the impression from their story of how expensive and complicated it is to setup with all the regulations! They raised £50m+ to do so, the founder previously founded Worldpay and so already knew the regulators etc…

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The TechCrunch article has more details:

  • 6 million accounts up from 4 million just 5 months ago
  • this was started at least this 2 years ago
  • they have a team of 70 people on this
  • in the next 5 years there is plans to offer “…everything from Robinhood that you could get from walking into your local bank.”

I wonder what benefits bringing clearing in-house gives them in the background too..

Now that’s interesting (you knew I’d like that :wink:) what if stockbroking was just a smart acquisition strategy for a business that wants to (at least partly) be a challenger bank? It’s definitely been more effective than the other approaches that’ve been tried in the US.


Bloomberg reported Robinhood was discussing banking products with regulators a few months ago. I don’t know, feels like they could focus and get more market share as a stockbroker. But then again US Banking needs someone to disrupt it. Their IPO will be interesting for a lot of reasons.

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We’re already self-clearing in the UK and are the direct custodian of our clients’ assets. The equivalent of DTCC in the UK is CREST, which we are members of. Just saying.


Show off! :sunglasses:

What about US or ex-UK stocks when we start to introduce them to the app?


I was thinking Square was going to go into banking with its Cash App, but they’ve had some stumbling blocks. Doesn’t seem all that easy!


We won’t be going full-stack in every international market anytime soon, but you might find this article interesting: What is a CREST Depository Interest (CDI)? – The International Investor


Sorry Rob but

“the founder previously founded Worldpay”

You are sure of this? I dont think so. Any link?

yes, I think I heard this on a podcast, but there’s an article which has the story as well…

On mobile and couldn’t find the Robinhood main thread. Migrate if possible


The competitor threads have been temporary locked due to problems distinguishing planted posts Vs legitimate discussion of differences between platforms.

It’s hard to administer, probably need to update forum guidelines. Problem is that opinions are always going to be skewed, we have to learn to accept them and let everyone make up their own minds.

But how far do you let it go and where do you draw the line with the spam and nefarious posts


If you try printing this mega thread on RH’s account, it’s 49 pages of size A4 so far with a “chat-bot” replying with the same statement over and over:

People can’t day trade and it looks like it’s been 3-4 hours.

Building robust infrastructure is hard.

I’d advise not to (day) trade and embrace longer time horizons for investing (if you can) unless you know your margin of safety.

“Go to Winchester…”


Will be interesting to see what impact this has on Robinhood in the long term. I imagine most are kicking off a storm to try and get compensation/Robinhood fined again.

I’d also been keen to see RH handle the openness around what the tech issues are/were

T212 I can understand but I doubt there is “shills” from Robinhood (there’s nothing positive to say about them in the UK right now) or even Revolut

Interesting choice of first post :rofl::thinking:


Over 6 hours in total.

It’s system-wide now. More than 1 hour ago they posted an update and it looks bad:

There’s already an account:

(The sense of entitlement among some people is strong.)

But if you’re a passive investor:

Reddit’s /r/RobinHood/ - it can be just like this forum :rofl::

Found it:

The day that this happens here…my phone’s going in the bin.



"One of my most overarching principles is “knowing how to deal well with what you don’t know is much more important than anything you know.”

"Related to this is my fundamental investment principle that “diversifying well is the most important thing you need to do in order to invest well.”

“This is true because 1) in the markets, that which is unknown is much greater than that which can be known (relative to what is already discounted in the markets) , and 2) diversification can improve your expected return-to-risk ratio by more than anything else you can do.

– Ray Dalio

(Bookmark this link :arrow_up:)

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