IB lets you get a credit card that uses margin in your stock account. You can also setup your account to loan shares to short sellers. It’s automatic if you opt-in, and you can still sell the shares at any time.
I use the IB iPhone app for everything. The iPad app is actually better, but I don’t always have the iPad with me. You can build options trades pretty easily on the iPhone app. I do calendar spreads and everything in the app.
No matter Whether other brokers are giving options or margin or free trade, Robinhood made a dent in brokerage, and becoming famous to fetch 5B level.
Any way, I have not posted robinhood for its functionality or benefit, but to inform everyone there is a potential IPO company from Palo Alto, going to rock this bay area again.
This company, originally (first) funded by google VC, going to create two more Billionaires (founders) and many millionaires to bay area.
When they pay such short term interest, they make triple or Quadruple amount as return.
As long as their (ROI - minus tax - minus 5% interest - invested amount) is greater than zero, taking margin is justified. The only is that they take additional risk as there is no free lunch.
They are just an ordinary brokerage, is my take. Interactive brokers has 30b$ valuation, and their service is superior, their market cap was 15b$ just a year ago.
I do not expect a lot from robinhood - they are not innovative, yet-another-brokerage - so far.
Some things stand out - Robinhood doesn’t have too many tech employees ( and few managerial level people) and yet have managed to make the business scale. They’ve also been fast to let users do bitcoin trading.
You don’t really need a lot of engineers for early stages in a product, in fact smaller is better.
“Business scale” → I don’t know much, plenty of brokers existed. I used to use options house around 2013ish i think.
Only few companies are giving commission free trades, but they have limitations.
Robinhood does not charge any commission for trades irrespective of the amount. It is free lunch, who will not eat? Even with $100 people can trade, gain or lose, benefit out of robinhood.
This is a killer app, growing fast, make a dent in IPO debut, wait and see.
Some say is because Mark has been selling everyday to raise funds for foundations. Actually, is he gifted to the Chan foundation which is doing the selling to avoid tax. From the perspective of the market is the same, increased supply means lower price.
Is FB a bottom drawer stock too? FB is well managed and is diversifying too (Istagram, WhatsApp, some office software, may be some home hardware stuffs)