Free Trades For Everyone

[yakers]

Anyone signing up?


Robinhood trading app has 340,000 wait list - The Buzz - Investment and Stock Market News

Don't know why but the Dire Straights song popped into my head "Money for nothing and chicks for free"

 

[LongPrime]

Nope.
Current trading patterns IMO dont warrant changing. My trading losses by far surpasses my trading costs. And in 2013 my trading profits far surpasses the fees to make that profit. And everything inbetween don't much matter.

Brokerage houses don't make much on retail trading fees anyway-They make money on your deposit ...

 

[Ronnieboy]

I haven't signed up for that one, but I did join Loyal3, which has free trades for specific companies. Plenty for me to play with.

 

[LOL!]

I suppose this app will appeal to folks who have no money and want to day trade. But then they will probably get hit with the "pattern day trader" rule and need $25,000 anyways. Or maybe the app won't support a margin account.

In the meantime, everyone should already have free trades now for the things that they should need to trade. To wit:

Vanguard has free trades on its mutual funds and its ETFs.
TDAmeritrade has free trades on about 100 ETFs including Vanguard ETFs.
Wells Trade has 100 free trades a year on ETFs, stocks, and funds if you are grandfathered into their PMA package that had free trades.
Fidelity has free trades of many iShare ETFs.
Merrill Edge has free trades.

Basically if you are paying for trades now, then you are a chump.

 

[photoguy]

I'll admit to paying a few bucks for trades at vanguard. I don't have enough in vanguard funds to qualify for free trades on ishares etfs. It wasn't worth the hassle to me to setup another account elsewhere.

Regarding the app, the last thing I want to be doing is making trades on my phone or iPad where I think I'm much more likely to make an error, be distracted and it's harder to access other information.

From the article

The company's business model is to make money on margin trading, interest on cash deposits and payment for order flow, a fancy way of saying making money by trading faster or slower than others.

(emphasis mine). Maybe they should have said "a fancy way of saying kickback".