Individual Stocks, ETFS?

[Reyaj]

Anyone buy individual stocks or ETFs? What app or program do you use?

 

[wifehunter]

I was using cash app to buy s&p, tesla, etc. But I sold everything, because I realized that they are all an unlimited supply of poop.

Just Bitcoin now.

 

[Reyaj]

I was using cash app to buy s&p, tesla, etc. But I sold everything, because I realized that they are all an unlimited supply of poop.

Just Bitcoin now.

Didn't know cash app could be used for stocks... How much are their transaction fees?

 

[wifehunter]

Didn't know cash app could be used for stocks... How much are their transaction fees?

I don't remember, and it's probably changed.

 

[Reyaj]

I am liking this Robinhood app.

Time to make a portfolio... Thinking of mixing small cap companies and blue chips..

 

[RBK]

I use Vanguard for all trading.

 

[Reyaj]

Robinhood is working well so far, only downside is the time it takes for deposits to come in

 

[Bible_Belt]

I have been conned into using Robin hood

Don't do it. They don't actually execute your trades. If you have a big winner, they just remove the position from your account. Citadel financial is their funding arm, and they have bribed all the politicians who might regulate them. Robin hood screwed a friend of mine out of a $75k winning option position. There is a class action lawsuit ongoing.

 

[Reyaj]

Don't do it. They don't actually execute your trades. If you have a big winner, they just remove the position from your account. Citadel financial is their funding arm, and they have bribed all the politicians who might regulate them. Robin hood screwed a friend of mine out of a $75k winning option position. There is a class action lawsuit ongoing.

I did not say that quote lol

Anyway what do you mean they don't execute trades? So if I buy 100 shares of something and it says I own it, I really don't?

 

[Bible_Belt]

I did not say that quote lol

Anyway what do you mean they don't execute trades? So if I buy 100 shares of something and it says I own it, I really don't?

Correct. Most traders lose money anyway, so rh just keeps your losses for themselves.

 

[Reyaj]

Correct. Most traders lose money anyway, so rh just keeps your losses for themselves.

I'm diversifying though... Mixing strong established companies with a few young ones. Bought an REIT too. I think I legitimately own the stock.. I know the knock with them is that they sell information but I think if I were to sell the stocks I invested I'd get the money

 

[Bible_Belt]

I'm diversifying though... Mixing strong established companies with a few young ones. Bought an REIT too. I think I legitimately own the stock.. I know the knock with them is that they sell information but I think if I were to sell the stocks I invested I'd get the money

I remember a day trading firm a little over 20 years ago that did the same gig. They touted it as "liquidity partner." Why wait to get your trade executed on an exchange when we will take the other side of your position right now? 99% of you people lose money, so doing the opposite of you is almost a sure bet, was what they were really saying.

You own the stock in the sense that if you sell it for a loss or a small gain, rh will add or subtract to your account. But if you do really well and hit a lottery ticket of a position, they will just erase it from your account, because they never executed the trade in the first place and don't want to be on the hook for the money.

 

[Reyaj]

I remember a day trading firm a little over 20 years ago that did the same gig. They touted it as "liquidity partner." Why wait to get your trade executed on an exchange when we will take the other side of your position right now? 99% of you people lose money, so doing the opposite of you is almost a sure bet, was what they were really saying.

You own the stock in the sense that if you sell it for a loss or a small gain, rh will add or subtract to your account. But if you do really well and hit a lottery ticket of a position, they will just erase it from your account, because they never executed the trade in the first place and don't want to be on the hook for the money.

Wow that's scary... Not to be cynical but are there any article sources around this?

 

[Bible_Belt]

Wow that's scary... Not to be cynical but are there any article sources around this?

RH executes 100% of their trades through market makers, Citadel and a few others. They sell you stock out of their own inventory through a process called paid for order flow. It is the same way online brokerages worked in the 90s when they first came out. When you buy, you pay a little bit higher of a price than the current market, and similarly you get a lower price when you sell. And they don't have to disclose that spread. That's why it is hard to get traded when a stock is moving rapidly. They won't execute an order unless they are sure they can make a spread.

My friend was trading options, and what is probably going on is that the market makers do not have a full inventory of option positions to offer. But almost everyone loses money, so they don't care.

Wherever you are in the US, look up your elected representatives and their biggest donors. Citadel will be on the list. They have made billions on screwing traders, so they then wisely invest that money by purchasing politicians who might attempt to regulate them.

 

[Reyaj]

RH executes 100% of their trades through market makers, Citadel and a few others. They sell you stock out of their own inventory through a process called paid for order flow. It is the same way online brokerages worked in the 90s when they first came out. When you buy, you pay a little bit higher of a price than the current market, and similarly you get a lower price when you sell. And they don't have to disclose that spread. That's why it is hard to get traded when a stock is moving rapidly. They won't execute an order unless they are sure they can make a spread.

My friend was trading options, and what is probably going on is that the market makers do not have a full inventory of option positions to offer. But almost everyone loses money, so they don't care.

Wherever you are in the US, look up your elected representatives and their biggest donors. Citadel will be on the list. They have made billions on screwing traders, so they then wisely invest that money by purchasing politicians who might attempt to regulate them.

It says they execute trades at the NBBO which means Nationality Published quote. That means best available bid or ask price right?

 

[BriBri]

I used Scottrade years ago and have been using Schwab for a couple years. No problems with ETF or individual stock trades.

 

[Bible_Belt]

It says they execute trades at the NBBO which means Nationality Published quote. That means best available bid or ask price right?

LOL. If they give you the best price, then where does their profit come from? There is a spread taken on every trade.

 

[logicallefty]

I agree with @Bible_Belt About Robin Hood. I think it’s shady. I used it up to a couple of years ago and always found myself having app issues when the trades seemed to be going my way. Same with Webull.

I use Fidelity for a broker now. They are one of the older ones and I’ve never had any trouble with execution of orders. Their customer service is good and I’ve never got any impression that they were shady.

That being said, I think the overall market is rigged. That is why I don’t do anything anymore but day trade. In and out in same day, no matter what.! I haven’t been training the past couple months only because I haven’t had time. Hope to get back at it soon.

 

[Reyaj]

LOL. If they give you the best price, then where does their profit come from? There is a spread taken on every trade.

I looked it up and it says they make money by putting uninvested cash into interest bearing accounts..

I agree with @Bible_Belt About Robin Hood. I think it’s shady. I used it up to a couple of years ago and always found myself having app issues when the trades seemed to be going my way. Same with Webull.

I use Fidelity for a broker now. They are one of the older ones and I’ve never had any trouble with execution of orders. Their customer service is good and I’ve never got any impression that they were shady.

That being said, I think the overall market is rigged. That is why I don’t do anything anymore but day trade. In and out in same day, no matter what.! I haven’t been training the past couple months only because I haven’t had time. Hope to get back at it soon.

I'm not really day trading.. just creating a diversified portfolio.. you think even doing that is risky on Robinhood?

 

[G Money]

Nobody here uses Stash app??