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/biz/ - Business & Finance

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11103170 No.11103170 [Reply] [Original]

If you bought into the Robinhood shilling around here, you should have known that if someone is giving you something for free, they're making up the difference somewhere.

That somewhere, in this case, is your personal data being sold to high-frequency-traders.

So, your "free" trade really ends up costing you more because they're in bed with the scalpers.

https://www.zerohedge.com/news/2018-09-15/robinhood-investing-app-makes-millions-selling-users-data-high-frequencstealing

>> No.11103194

that's cool I just hodl

>> No.11103200
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11103200

>>11103170
Conventional brokers:
>buy 100 shares of A at limit price of $X
>sell 100 shares of A at limit price of $X+Y
>profit 100*Y - $5-$7 commission

Robhinhood:
>buy 100 shares of A at limit price of $X
>sell 100 shares of A at limit price of $X+Y
>profit 100*Y - $0 commission

go fuck yourself OP

>> No.11103214

>>11103170
so?

>> No.11103220

everyone does that faggot

>> No.11103234

>>11103170
>if something is free, you are the product
how do people not know this in 2018?

>> No.11103244
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11103244

>>11103200
Holy shit, you're delusional.
It's not that they're selling your data, >>11103220 is right. It's that they're shit tier because they have a broke ass clientele. They're fucking you 8 ways from sunday as far as access/pricing/fills go, but at least they're freeeeeeeee

>> No.11103251

>>11103244

It's called math you fucking moron.

I don't care if they are scalping fractional pennies off of transactions. I'm still pocketing more money by not having to pay $5-$7 transaction with a fee-based broker

>> No.11103259

>>11103200

Conventional Brokers:

> Put in a buy order for 100 shares of A at limit price of $X
> when you place the order, A has ticked down and is now x-.05
> your order gets filled at x-.05

Robin Hood:
> Put in a buy order for 100 shares of A at limit price of $X
> when you place the order, A has ticked down and is now x-.05
> Robinhood gives a heads up to HFT. They buy at x-.05, and then sell to you at X
> You pay x, they make .05
> HFT gives kickback from the the fronting to Robinhood.

>> No.11103266

>>11103244

They sell your data, as in your trading behavior. They don't literally phone somebody to profit off of your trade that moment, that is fraudulent and illegal.

So, the same thing every digital era company is doing. Your small fries Robinhood account isn't important enough to warrant scrutiny or manipulation on its own.

>> No.11103268

>>11103200
>>11103214
/thread

Imagine being as fucking stupid as OP. Lol. Back to plebbit loser.

>> No.11103279

>>11103251
>I'm still pocketing more money
Nope.
You're getting fucked and don't even know it. Of course you think you're getting a bargain, no one would use this shit otherwise.

>>11103266
>They sell your data
No shit.
You must not have read the post.

>> No.11103280

>>11103220

Yes, everyone does it. But Robinhood is making 10x the amount of others doing it.

Guess whose money they are using?

>> No.11103287

>>11103280
I dont give a fuck because Im not paying outrages 5-7 dollars in commission

>> No.11103293

>>11103259

I'm still getting the stock at the price I want.

>> No.11103303

>>11103280
Well, RH was founded by a couple of hedgies.
Sounds to me like the perfect group to stick up for the little guy.

>>11103287
>>11103293
>They're not out to fuck ME

>> No.11103312

>>11103293
Wait, do you even know what the real price is?
Aren't their "prices" just an average, not real time quotes?

>> No.11103317

>>11103280
Lol this is 100% a plebbit user. They’re the only ones who go on these self righteous whistle blowing campaigns while stroking themselves, thinking they’re brilliant for “figuring out the scam”. Kys immediately.

>> No.11103319

ITT: Morgan Stanley is upset their firm is losing clients

Maybe youll learn something new about what customers want

>> No.11103327

>>11103312

How much is TDAmeritrade paying you to shill here?

>> No.11103339

>>11103279

>no shit

No, you're being retarded by insinuating that they're actively scheming with HFTs to nickel and dime each of your trades

And if you're so suspicious of that put a fucking limit order in

>> No.11103341
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11103341

>>11103327
good answer

>> No.11103354

>>11103339
>insinuating that they're actively scheming with HFTs to nickel and dime each of your trades
Nope, never said that, or implied it.
Only agreed they sell your data.
Hey look, you said that too!

>> No.11103363

This Robinhood FUD is most likely coordinated.

RH is the absolute best way for poorfags to play the stock market at microstakes (buys/sells of $100-$400), without their accounts being eaten by commissions. This opportunity has never existed before.

If you're daytrading for pennies with large positions/high volume, that's one thing. But this muh HFT shit has ABSOLUTELY no effect on most people, most of the time. But commissions do.

GTFO back to whatever RH competitor is astroturfing this BS.

>> No.11103373

>>11103354

Alright, well, I don't give a fuck. Every app on your phone does the same thing. This site does as well. Welcome to 2018 squirt.

>> No.11103423

>>11103363
Question.
Do you believe there's any financial level below which people shouldn't be trading in the stock market? Trading.
I'm not talking about long term investments, or that they should be legally barred, or anything like that.
Just that, common sense-wise, should they?

>> No.11103431

>>11103363
>RH is the absolute best way for poorfags to play the stock market at microstakes (buys/sells of $100-$400), without their accounts being eaten by commissions. This opportunity has never existed before.
This is evidently true and they provide a good service for that particular market segment, so good on them. Once you start taking big positions or you try to flip options, if you have some experience with the fee-charging brokers, you see how RH gives you a shitty execution price and actually costs you more money. Their execution prices for options specifically are atrocious compared to the big boys. If you're small stack and just want to play with unleveraged equity positions, though, RH seems great.

>> No.11103441

>>11103423

PDT already exists you monkey. Why are you even discussing a subject you don't understand

>> No.11103457

>>11103441
>I'm not talking about long term investments, or that they should be legally barred, or anything like that.
>PDT
God you're fucking stupid.

>> No.11103461

>>11103431

To dumb it down for people who can't follow...

... imagine that you drive your friend to McDonalds every day. You tell him to to buy you a double cheeseburger, and give him $1.26 (the regular price that you remember seeing on the menu).

This goes on for a few months, then you discover that he's been buying it on the $1 menu, and has been pocketing the $0.26 every time without telling you.

Now... you expected to pay $1.26, so have nothing to complain about, right? Or do you?

>> No.11103463

>>11103457

You're not saying anything, I wouldn't be surprised if you're some kind of bot

>> No.11103494
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11103494

>>11103463
I think you missed the point again.
RH sucks, but not for the reasons that we're talking about.
How about now?

>> No.11103542

>>11103293
Yeah but you are paying a higher percent for those stocks than you would if you used a different brokerage. So it’s not exactly “free” you’re paying way more than you would if you just used vanguard.

>> No.11103544

>>11103461

Stop using market orders you imbecile.

I've used fee brokers before and when orders are filled below my limit price, 99% the difference is fractions of a penny. The savings don't even come close to making up for the commissions.

KYS

>> No.11103563

>>11103542

BY FRACTIONS OF A PENNY.

Not once have I placed a limit order with a fee broker and they filled it at a price significantly lower than what I entered.

>> No.11103569

>>11103494

>a free stock trading service isn't top of the line in performance

This is like arguing with a wall.

>> No.11103571

>>11103563

Never? Happens to me all the time.

>> No.11103591

>>11103170
Pretty sure it goes deeper than that.

I used to go in the robinhood thread and explain how that if alot of robinhood users start to buy into a small cap it will crash. I went on to explain how when you buy a few shares of a stock it doesn't go through the orderflow on other brokers, if you put any buy or sell limit in it will not show up on a level 2 no matter the size.

People really think that robinhood will buy 2 shares of a stock @ .25 just for them. lol

Robinhood shorts the stock to their own customer base, if enough people using robinhood will buy into a stock with a market cap lets say less than a few billion the stock will start to drop. They short 100share lots (i've witnessed this after buying here and there on different days on low volume stocks) if the stock ask is 1.01 they will sell you the stock at 1.01 if you hit market but then they will put a bid down at .99. They then need to cover those shares which isn't hard when they are basically manipulating a stock.

How else do you think they are able to give away so many free shares? they are shorting them!! they have a 100 share lot but only 43 are "sold" to their customers they then give the rest away.

At first i noticed that alot of stocks that alot of robinhood customers were in would go probiolic.. such as DRYS, ETRM..etc.. thats when i started to look more into the way it trades when i'm on another broker using my robinhood.

If you wan't a small cap to go down just go into the robinhood thread (/smg/) and get some people to buy.

>> No.11103601

>>11103571

Not by .05 or some of the other figures retards are throwing out around here

>> No.11103625

>>11103591
>he thinks /smg/ has enough buying power to move a stock on it's own

That's enough retardedness for one night.

I'm done with this thread

>> No.11103654

>>11103625
Smart move.
You've been adding to the stupid since you got here.

>> No.11103663

>>11103591

Reminds me of how brokers do conversion/reversals with retail people trading options. Brilliant fucking idea; I just wish we all could do it.

>> No.11103820

>>11103625
Maybe you aren't understanding what i said or maybe you don't understand how MMs place and execute orders.

If someone buys 2 shares of a stock Robinhood shorts 100 shares to it's own customers because that is an even lot. They will either A. continue to do this if the price fluctuates or continue to sell their shares that they are now short (because they still have shares of their even lot) to their client base.

Im not saying /smg/ has enough buying power to move the stock you fucking retard i'm saying that robinhood is shorting more stock than what their clients are buying.

I don't get how you can be so dense and not understand what i'm trying to tell you.

Also, yes, If /smg/ was on the same page as each other they definitely can move stocks that have less than 50million market cap and less than $20,000 of trading volume a day.

Try not to be so dense next time kiddo. Lurk more if you have to

>> No.11103995

>>11103820
>stocks that have less than 50million market cap and less than $20,000 of trading volume a day.
so these are like shitcoins of stocks?
shitstocks?

>> No.11104093

>>11103995
there are plenty of stocks with less than 1million market cap.............................. and only a few hundred in volume.. they're called pink sheets

>> No.11104137

>>11104093
it would be cool to trade them, I hope they get tokenized some day

>> No.11104346

>>11104137
now that crypto is dieing down penny stocks can get more gains imo.. crypto will never have the gains like it had before. Pennystocks will always have those gains due to shells being bought and sold, mergers, FDA approvals, etc.

>> No.11104826

>>11103170
Just use limit orders retards