Robinhood seems to have run low on credit due to this insane surge, and would have needed to go long on $X00M worth of GME. Way too risky given guaranteed eventual drop. So they shut it down.
Originally Posted by KCUnited:
Even if their TOS negate any potential lawsuits it feels like brand suicide. Seems other platforms halted buying temporary or set limitations but RH went all in. Add in the known connection to some of the players in this and they're taking the heat.
Robinhoods exposure is probably wildly higher. Most of the capital at places like Schwab or Fidelity is probably in fairly safe retirement accounts. Sure, they have active trading accounts and some subset of that group was probably in these trades.
Also, from what I know, Robinhood makes it's money off getting people to trade and selling margin so they've gone out of their way to encourage some of this behavior. I'd be shocked if their subset of traders in these trades wasn't quite a bit larger.
I didn't see any "Vanguard cuts off trading of GME" headlines the last few days but they've went out of their way to sculpt a more buy and hold investor mentality. [Reply]
Originally Posted by Rain Man:
On a much more minor note, I've got an account at Schwab. I opened it online and have never spoken to a human being, which is how I want it.
Except once.
Years after I opened the account, I got a call out of the blue from someone I'd never heard of. He said, "I'm your broker at Schwab, and I'm going through your account. I see you've got XXX shares of this stock and YYY shares of that stock, and I'm wondering if perhaps we should move some to ZZZ mutual fund where I get paid a commission." (Well, he didn't say that last part, but it was obvious.)
I took the phone away from my ear and looked at it in confusion before putting it back. "Who are you?"
"I'm your broker and I just wanted to talk about ..."
He was clearly in my account because he knew what my holdings were. It was some dude who worked there. I sent him packing, and then I started getting his "personal Schwab newsletter", which went straight to my junk folder.
I have no idea why they suddenly assigned this guy to me, and I did not welcome his presence. Now I know that some dude that I've never met occasionally looks in my stock account, and I've considered moving away from Schwab as a result.
THAT would bother me A LOT. I'd shut that account down if it were me. [Reply]
Originally Posted by Discuss Thrower:
No it's pretty clear from mainstream news coverage that this isn't Robinhood looking out for their users' interest. They're covering for the hedge funds who are getting BTFO by a bunch of barbarians instead of their Ivy-league educated, big moneyed competitors.
Originally Posted by DaFace:
Whether they should be in the role of protecting people is subject to debate, but this is insanely risky to anyone buying in right now.
One month from now, GME will likely be worth $20. If you're buying now, you're betting that you can time it right and not lose your ass before then, and people have never been able to time the market.
RH didn’t give a flying fuck when the same jackasses were YOLOing their whole portfolio on Tesla calls. This isn’t about risk to the investor. [Reply]
Originally Posted by FD:
A few hedge funds with big short positions will lose, but most of the short squeeze is being pushed by other hedge funds. They are just using the redditors as cover. There isn't enough money on WSB to execute this big of a trade, it is mostly coming from some different hedge funds that are making out like bandits while the vast majority of the redditors are getting in late and will be left holding the bag.
Originally Posted by Ninerfan11:
Anyone have a way to get around the $75 Robinhood account transfer fee?
Sell, transfer money, buy. But don't sell any GME you may have, as there is some chance you won't be able to buy again. Realistically you'll have two accounts on two brokerages for awhile. [Reply]
Originally Posted by MagicHef:
Sell, transfer money, buy. But don't sell any GME you may have, as there is some chance you won't be able to buy again. Realistically you'll have two accounts on two brokerages for awhile.
If i sell I'll have to pay crazy taxes, trying to avoid giving RH my money [Reply]
