Tech firm aiming its sights at brokers: Robinhood - free brokerage

Discussion in 'Wealth Creation & Management' started by aleks, Apr 16, 2015.

Page 1 of 3
  1. aleks

    aleks Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    2,210
    Likes Received:
    27
    Trophy Points:
    48
    Location:
    Karl-Marx-Allee
    https://www.robinhood.com

    They have a platform that offers free trades and realtime data currently in its beta phase, and no minimum trade size?

    This has the potential to tear down alot of barriers to entry in financial markets

     
    aleks, Apr 16, 2015
    #1
  2. sammysilver

    sammysilver Well-Known Member Silver Stacker

    Joined:
    Apr 7, 2011
    Messages:
    7,981
    Likes Received:
    6,657
    Trophy Points:
    113
    Location:
    Sydney
    It could certainly change the dynamics of share trading.

    I always maintained that silver, at currently say $24 an ounce ,is a bite size way to accumulate; however, to be able to buy a single BHP share et al, is an attractive proposition.
     
    sammysilver, Apr 16, 2015
    #2
  3. trew

    trew Active Member Silver Stacker

    Joined:
    Aug 24, 2011
    Messages:
    3,653
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    Melbern
    Can't see wall st letting this go very far
     
    trew, Apr 17, 2015
    #3
  4. aleks

    aleks Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    2,210
    Likes Received:
    27
    Trophy Points:
    48
    Location:
    Karl-Marx-Allee

    SLV ETF one ounce at a time, GLD is a tenth of an ounce
     
    aleks, Apr 17, 2015
    #4
  5. SilverKendo

    SilverKendo New Member

    Joined:
    Dec 26, 2013
    Messages:
    259
    Likes Received:
    1
    Trophy Points:
    0
    I just opened an account with Robinhood but have yet to make any trades. I've been using Loyal3 for a few months but it has a very limited selection of stocks. It is more like a DRP platform than discount brokerage. Loyal3 has several stocks that I was interested in buying anyway though so it has worked for me for now. There are a few sectors that aren't represented on Loyal3 that I want exposure to so Robinhood seems like a good place to try. When I make my first trades I'll report back.
     
    SilverKendo, Apr 17, 2015
    #5
  6. goldpelican

    goldpelican Administrator Staff Member

    Joined:
    Jun 29, 2009
    Messages:
    17,648
    Likes Received:
    581
    Trophy Points:
    113
    That's actually a really neat idea. Makes stock purchases for someone with say $100 a month to invest realistic without copping a 10% instant hit from brokerage fees.

    Stock portfolios don't seem prone to "hacking theft" type incidents that plague nascent Bitcoin exchanges still figuring out security.
     
    goldpelican, Apr 17, 2015
    #6
  7. SilverKendo

    SilverKendo New Member

    Joined:
    Dec 26, 2013
    Messages:
    259
    Likes Received:
    1
    Trophy Points:
    0
    The thing I do like about Loyal3 is that it allows you purchase fractional shares (again why I feel like it more of a DRP platform service vs a brokerage). It allows the investor to dollar cost average and opens up doors for smaller players to get in the game. It allows a small guy to create a somewhat diversified portfolio pretty quickly with a small budget.

    I'm excited to try out Robinhood but I need to download the app on my wife's phone, since mine is a little out of date for the software. OnceI get the app I'll start making some trades and see what happens. I'm glad these platforms are out there now. I started to realize most of my assets were in metals, job pension, 401k and bonds. I needed a little more direct stock exposure but wasn't able to drop the cash most places required to open an account.
     
    SilverKendo, Apr 17, 2015
    #7
  8. aleks

    aleks Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    2,210
    Likes Received:
    27
    Trophy Points:
    48
    Location:
    Karl-Marx-Allee
    Being able to buy the SP500 and the ASX200 ETFs one share at would be great for people who only have the capacity to invest a three figure sum of money at a time, the only other way I can see someone doing this is through the vanguard funds that let you deposit a minimum $100 at a time but you still need a minimum $5K initial investment
     
    aleks, Apr 18, 2015
    #8
  9. goldpelican

    goldpelican Administrator Staff Member

    Joined:
    Jun 29, 2009
    Messages:
    17,648
    Likes Received:
    581
    Trophy Points:
    113
    Ok, so Robinhood works. Took three days for my initial funds to clear, but today my at-market order for 1 Disney stock was filled.

    Only works on iOS at the moment, so I need to run the iPhone app on the iPad, they're saying an Android app is coming. The UI is pretty simple to figure out, but the watchlist/portfolio screens could use some work - it's a little "too" simple. Looks like there's permanent items on the watch list like Google and Apple that you can't remove, only add your stocks to watch at the end of.

    Given it's only a 4 digit pin between a lost phone and your stock portfolio, I wouldn't recommend it for large portfolios, but for dollar-cost-averaging in with small budgets, it looks like a winner.

    Note I'm writing this from a US perspective.
     
    goldpelican, Apr 23, 2015
    #9
  10. SilverKendo

    SilverKendo New Member

    Joined:
    Dec 26, 2013
    Messages:
    259
    Likes Received:
    1
    Trophy Points:
    0
    I just got an email stating my funds cleared today as well. My phone has an older version of iOS so I have to wait til I get off work to use my wife's phone. I'm excited to see how it works. I have a few stocks I've been researching so when i pull the trigger on Robinhood I'll report back.
     
    SilverKendo, Apr 23, 2015
    #10
  11. SilverKendo

    SilverKendo New Member

    Joined:
    Dec 26, 2013
    Messages:
    259
    Likes Received:
    1
    Trophy Points:
    0
    Well it works. I made a purchase of some Old Republic Int. (ORI) stock with Robinhood. It was quick, easy and painless. I agree with GP that it might be a little too simplistic. I'm not sure I would use it as a research tool, but for what it is I'm happy. Going forward I will be using Loyal3 and Robinhood. I like Loyal3 because it has several stocks I like and it lets me dollar cost average like a DRP. For those other stocks I want Robinhood will be my go to platform. Let's hope they both stay free.
     
    SilverKendo, Apr 23, 2015
    #11
  12. aleks

    aleks Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    2,210
    Likes Received:
    27
    Trophy Points:
    48
    Location:
    Karl-Marx-Allee
    I don't see how full disk encryption wouldn't stop the average person who has picked up your phone if you loose it
     
    aleks, Apr 24, 2015
    #12
  13. SpacePete

    SpacePete Well-Known Member Silver Stacker

    Joined:
    Mar 1, 2014
    Messages:
    12,433
    Likes Received:
    40
    Trophy Points:
    48
    Does it even have facilities for managing a large portfolio?
     
    SpacePete, Apr 24, 2015
    #13
  14. aleks

    aleks Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    2,210
    Likes Received:
    27
    Trophy Points:
    48
    Location:
    Karl-Marx-Allee
    Website says they are a member of FINRA with $500K insurance on securities, I can't see any deposit limits on their website but if you did have the capacity to invest millions you would probably be using something else
     
    aleks, Apr 24, 2015
    #14
  15. goldpelican

    goldpelican Administrator Staff Member

    Joined:
    Jun 29, 2009
    Messages:
    17,648
    Likes Received:
    581
    Trophy Points:
    113
    Saw that they are expanding internationally and Australia is first on the list.
     
    goldpelican, May 9, 2015
    #15
  16. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    18,680
    Likes Received:
    4,442
    Trophy Points:
    113
    Looking forward to that.
     
    mmm....shiney!, May 9, 2015
    #16
  17. aleks

    aleks Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    2,210
    Likes Received:
    27
    Trophy Points:
    48
    Location:
    Karl-Marx-Allee
    Nice! I was about to send them an email and ask them this, now they just need to hurry up and roll out their android app.
     
    aleks, May 9, 2015
    #17
  18. aleks

    aleks Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    2,210
    Likes Received:
    27
    Trophy Points:
    48
    Location:
    Karl-Marx-Allee
    This will be a great way to accumulate shares in a SMSF. Accumulating VAS and SPY every time your super gets a deposit without getting destroyed by fees.
     
    aleks, May 9, 2015
    #18
  19. SilverKendo

    SilverKendo New Member

    Joined:
    Dec 26, 2013
    Messages:
    259
    Likes Received:
    1
    Trophy Points:
    0
    I've made a few more purchases on Robinhood and so far I've been very happy with it. I hope they get it down to you guys because it makes stocks super accessible. There have been a few times already when I've skipped eating out and used that extra cash to purchase a stock or two. Something I couldn't justify previously. I know other brokers have tried to offer 0 fee trades and failed. Hopefully these guys get it right and we keep this service around for a while.
     
    SilverKendo, May 9, 2015
    #19
  20. aleks

    aleks Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    2,210
    Likes Received:
    27
    Trophy Points:
    48
    Location:
    Karl-Marx-Allee
    Australian users can sign up early but there is a que

    https://robinhood.com/?ref=KF7C9N

    That's my referral link if anyone wants to use it (means I will jump the que a little for a referral)
     
    aleks, May 9, 2015
    #20
Page 1 of 3

Share This Page