Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Rhyd6,87investor,longview,Sussexlad, for Donating to support the site

Robinhood.com - commission free investing

Investment discussion for beginners. Why you should invest your money, get help getting started
feder1
Lemon Slice
Posts: 293
Joined: November 8th, 2016, 8:28 am
Has thanked: 28 times
Been thanked: 30 times

Robinhood.com - commission free investing

#319780

Postby feder1 » June 19th, 2020, 2:29 pm

This is coming to the UK sometime and was mentioned on Bloomberg today.

I might be worth looking closer at it.

OLTB
Lemon Quarter
Posts: 1227
Joined: November 4th, 2016, 9:55 am
Has thanked: 1175 times
Been thanked: 493 times

Re: Robinhood.com - commission free investing

#319791

Postby OLTB » June 19th, 2020, 2:54 pm

Robinhood was doing the rounds on Twitter over the last few days because of this tragic story...

https://www.dailymail.co.uk/news/articl ... -debt.html

A misunderstanding it appears - some people need to be protected from their own exuberance and perceived knowledge of these complex instruments.

Cheers, OLTB.

EthicsGradient
2 Lemon pips
Posts: 129
Joined: March 1st, 2019, 11:33 am
Has thanked: 10 times
Been thanked: 42 times

Re: Robinhood.com - commission free investing

#319796

Postby EthicsGradient » June 19th, 2020, 3:11 pm

OLTB wrote:Robinhood was doing the rounds on Twitter over the last few days because of this tragic story...

https://www.dailymail.co.uk/news/articl ... -debt.html

A misunderstanding it appears - some people need to be protected from their own exuberance and perceived knowledge of these complex instruments.

Cheers, OLTB.

I just had a candidate for Private Eye's "Malgorithms" - inappropriate adverts, served up by keyword matching - when reading that Mail article. I got "make money by trading commission-free stocks. 64% of clients lose money using this."

OLTB
Lemon Quarter
Posts: 1227
Joined: November 4th, 2016, 9:55 am
Has thanked: 1175 times
Been thanked: 493 times

Re: Robinhood.com - commission free investing

#319798

Postby OLTB » June 19th, 2020, 3:18 pm

feder1 wrote:This is coming to the UK sometime and was mentioned on Bloomberg today.

I might be worth looking closer at it.


I already use Trading 212 for my commission free trading within my ISA - no issues at all, although only the main stocks (within the US/Germany/UK) and ETFs are available (so no AIM if that's your bag).

Cheers, OLTB.

OLTB
Lemon Quarter
Posts: 1227
Joined: November 4th, 2016, 9:55 am
Has thanked: 1175 times
Been thanked: 493 times

Re: Robinhood.com - commission free investing

#319799

Postby OLTB » June 19th, 2020, 3:20 pm

EthicsGradient wrote:I just had a candidate for Private Eye's "Malgorithms" - inappropriate adverts, served up by keyword matching - when reading that Mail article. I got "make money by trading commission-free stocks. 64% of clients lose money using this."


I have not heard of Malgorithms before - but it's a wonderful description! Quite a warning especially following the story.

Cheers, OLTB.

Pete675
Posts: 7
Joined: March 9th, 2020, 9:44 am
Has thanked: 1 time
Been thanked: 2 times

Re: Robinhood.com - commission free investing

#320074

Postby Pete675 » June 20th, 2020, 4:46 pm

But is commission free investing really free - surely the spreads are wider, compared to what's on offer from the likes of HL or AJ Bell?

The target market seems to be the inexperienced and financially unsophisticated, occasionally with disastrous consequences, as above.

Lootman
Lemon Half
Posts: 7902
Joined: November 4th, 2016, 3:58 pm
Has thanked: 66 times
Been thanked: 1402 times

Re: Robinhood.com - commission free investing

#320078

Postby Lootman » June 20th, 2020, 4:58 pm

Pete675 wrote:But is commission free investing really free - surely the spreads are wider, compared to what's on offer from the likes of HL or AJ Bell?

Spreads should not be wider for exchange-traded securities.

But if it is an OTC-type security then your counterparty is the broker and they can manipulate the spread of course.

Trades won't be free because of stamp duty, where applicable. And because of spreads, where appreciable. In the US, with no stamp duty and tight spreads, online trading has become effectively free.


Return to “How Do I Invest”

Who is online

Users browsing this forum: No registered users and 6 guests