Robinhood Discussion 🏹

All irrelevant in my view, RH are US only, FT are Europe only. The real issue is Trading 212 who are beating FT hands down.

FT have one big advantage, no leverage, stockbroker only. Completely insulated from leveraged gambling. They need to concentrate on offering a full platform of funds, and 100% of LSE listings. Their competition is then HL not T212. And for this a full desktop offering is needed.

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Just realised you’re a famous entrepreneur @adatherton great to hear your contributions.

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Totally agree. To attract the segment of the market that is still retail (i.e. individual investors) but a bit more pro, a desktop version is essential.

That seems such a long time ago. Although I was getting a million pageviews a day in 1997, which was world-class at the time.

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It would be nice to see options introduced into FT imo.
Even if it was only covered options that were possible. Reducing risks to begin with.

The RobinHood incident above is a shame and a tragedy, though I dont think it should be seen as a deterrent for options, rather, more geared towards providing education on the area and having better screening for those who can trade options. Its clear from reports and viewing the UI of RobinHood that the options trading was presented as gambles and far too easily accessible for beginners or those who weren’t aware of the risks.

I am a fan of freetrade and use it as my main account currently. Though I have to admit, if/when a uk/eu platform integrates the option to trade options within their platform I would most likely migrate. From forums it seems T212 has this on the plan…

The problem with options is that brokers allow retail traders to write (sell) them as well as buy them. Writing an option as has a fixed upside, and but (in the case of selling a call) a unlimited downside. (in selling a put, at least share can only go to zero). Buying options is safe, safer than leveraged CFDs, as you pay in full up front.

Example : penny share say 10c with a 0.1c spread (9.95/10.10), no vol at all. A one week call will probably be 0.15/0.20c. So you sell 5000 calls at 0.20c and receive $1,000. Elon Musk or Donald Trump or r/wallstreetbets say this is the best company ever, price jumps to $200. Calls are now worth 5000 x $100. You are on the hook for $1m. There was no leverage involved from the broker.

If you’d bought 5000 puts, you’d only lose your $1,000.

In Europe, brokers are not allowed to take retail accounts negative, this is why you’ll not see options here, or certaintly not writing. Nevertheless IG and Saxo and a couple of others do cautiously let you do it.

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Robinhood files “confidential” paperwork to go public, source says

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If only they used:

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Huge Numbers

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They get points for trying. A few will get in at IPO prices, the rest will claim it’s a conspiracy :rofl:

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If RH can use their connections with the likes of Citadel & Goldman to get onboard pre ipo they could then sell their own allocation on IPO day and give their platform an advantage and making money.

Or what all investors should do - wait a few weeks and pick it up under the joke of a ‘reference price’ that nobody got anyway cough cough $COIN.

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Robinhood fined $70 mln for harming 'millions' via misleading info, outages | Reuters.

Robinhood S-1


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Straight to the risks section -

‘ For the year ended December 31, 2020, revenue derived from PFOF and Transaction Rebates represented 75% of our total revenues, and for the three months ended March 31, 2021, represented 81% of our total revenues ‘

That’ll be why they shuttered UK expansion then.

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£40Bn! :open_mouth:

avoid this like the plague.

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