RobinHood?

[cwelsh 1,549]

Has anyone on here had any experience with the Robinhood trading platform or service?  (https://robinhood.com/).  They claim trading options is commission free with no ticket charges (https://support.robinhood.com/hc/en-us/articles/115005706826-Getting-Access-to-Options).  I find it very hard to believe that they can actually stay in business doing that, but if it is true.....well that opens an entire world up and should improve performance.

 

I know nothing about these guys and was just floating it out there to see if any of the SO community did.

[Djtux 548]

1 minute ago, cwelsh said:

Has anyone on here had any experience with the Robinhood trading platform or service?  (https://robinhood.com/).  They claim trading options is commission free with no ticket charges (https://support.robinhood.com/hc/en-us/articles/115005706826-Getting-Access-to-Options).  I find it very hard to believe that they can actually stay in business doing that, but if it is true.....well that opens an entire world up and should improve performance.

 

I know nothing about these guys and was just floating it out there to see if any of the SO community did.

We had some discussions on RH in the past (https://steadyoptions.com/forums/forum/topic/4169-robinhood-commissions-free-options-trading/?tab=comments#comment-89036).

I've used it in the past for my 'gamble' account (to keep it separate from my primary broker account). For now it's only an app (no desktop) so it's cubersome to enter the trades for me. I prefer a desktop application to enter my trades and follow all the positions.

They are working on a web version and free option pricing as well, but that remains to be seen when it's actually released for real.

There was an interview by Kirk but i haven't listened to it yet : https://optionalpha.com/free-options-trading-robinhood-106647.html.

I'm personally on the waitlist for option with RH, but i closed all my positions on RH in January

 

[mrw02536 18]

Once we can trade options, what's the downside?

[cwelsh 1,549]

Well evidently you already can trade options.  The only downside I see is that they don't have a desktop platform yet, but that should be out soon. Their web interface is evidently in beta trial now -- wonder if anyone on here has used it.  But going commission free would improve SO performance dramatically. 

[Djtux 548]

6 minutes ago, mrw02536 said:

Once we can trade options, what's the downside?

Not clear to me how the margin works. On the stock only account, you are supposed to pay a monthly fee to access margin (they call it gold).

Also i'm not sure if they can handle the load if the market are busy. Are you confident you can place and execute trades when market are fast moving ?

[Kim 7,943]

58 minutes ago, cwelsh said:

Has anyone on here had any experience with the Robinhood trading platform or service?  (https://robinhood.com/).  They claim trading options is commission free with no ticket charges (https://support.robinhood.com/hc/en-us/articles/115005706826-Getting-Access-to-Options).  I find it very hard to believe that they can actually stay in business doing that, but if it is true.....well that opens an entire world up and should improve performance.

You can ask the same question about tradier?

[cwelsh 1,549]

Tradier isn't free though - they are definitely cheaper than IB and most other places, but not free.

[mrw02536 18]

Has anyone traded options? Maybe a screen shot if available?

[SBatch 3,123]

2 minutes ago, cwelsh said:

Tradier isn't free though - they are definitely cheaper than IB and most other places, but not free.

They are free ($89 monthly SO/Platform Fee).

Edited February 15, 2018 by SBatch

[cwelsh 1,549]

1 minute ago, SBatch said:

They are free ($89 monthly SO/Platform Fee).

(only applies to individuals)

[SBatch 3,123]

Just now, cwelsh said:

(only applies to individuals)

Not true.  I trade in a Partnership account and it is commission free.

[mrw02536 18]

I've been trading in tradier almost exclusively with no problem. Only issue is no P/L statement

[cwelsh 1,549]

Just now, SBatch said:

Not true.  I trade in a Partnership account and it is commission free.

When exploring it, they specifically told me that I'd have a platform fee for the entity and .10/contract (again much better than IB).  Regardless, don't want to hijak the thread, I'm trying to find anyone that has actually used the option trading on RH.

[Kim 7,943]

Even if it's $40/month, it's basically free.

[SBatch 3,123]

Just now, mrw02536 said:

I've been trading in tradier almost exclusively with no problem. Only issue is no P/L statement

P&L reports can be generated on the Apex website.

[SBatch 3,123]

Just now, cwelsh said:

When exploring it, they specifically told me that I'd have a platform fee for the entity and .10/contract (again much better than IB).  Regardless, don't want to hijak the thread, I'm trying to find anyone that has actually used the option trading on RH.

Execution will be the same on both Robinhood and Tradier as they both clear through Apex.

[mrw02536 18]

I have same question regarding option trading on RH

[Gaurav 0]

Do you think you will get good fills on this platform especially with the volume of contracts for the SO Fund? I have used some low cost platforms (for equities) before and wasn't happy with the fills and the general experience. My 0.02 for whatever that is worth.

[mrw02536 18]

I would think apex clearing is the key

[SBatch 3,123]

7 minutes ago, mrw02536 said:

I would think apex clearing is the key

Correct.  The difference in choosing Robinhood or Tradier over one another will come down to the platform and customer service.  Everything else will be pretty much the same.  Therefore, one can draw many conclusions about Robinhood by researching Tradier.

Edited February 15, 2018 by SBatch

[mrw02536 18]

Executing trades with tradier has been fine. The only difficulty is I'm not able to easily get a running profit and loss on their platform or from the apex site

[mrw02536 18]

I can't figure out how to generate a P/L statement on Apex, can you help?

[apsoccermd 27]

when I looked at Robin Hood u can only long but not short primium... not sure if it changed... also they only have mobile... entering spread trades on mobile is tough

[Javier 99]

May anyone who knows well, please clarify who is behind these two businesses (Tradier and Robinhood).

sorry but I tend to be extremely careful where I leave my money, furthermore when I do not see a clear business model behind. I believe I have read all posts, here and in Tradier forum, and do not remember an only mention, about the financial stability and warranties of these new brokers. I lived in the past some sad experiences with “extremely “ attractive deals. We all have seen how an apparently well backed product has gone with the wind in a night (VXI) and no tears now.

Thanks in advance.

[SBatch 3,123]

5 hours ago, Javier said:

May anyone who knows well, please clarify who is behind these two businesses (Tradier and Robinhood).

sorry but I tend to be extremely careful where I leave my money, furthermore when I do not see a clear business model behind. I believe I have read all posts, here and in Tradier forum, and do not remember an only mention, about the financial stability and warranties of these new brokers. I lived in the past some sad experiences with “extremely “ attractive deals. We all have seen how an apparently well backed product has gone with the wind in a night (VXI) and no tears now.

Thanks in advance.

There seems to be some confusion in this thread regarding how brokers earn part of their revenue.  In addition to commissions all brokers/market makers/clearing firms  also receive rebates from the exchanges for order flow.  This is Tradier’s model.  They have extremely limited overhead as they do not provide their own platform (and therefore eliminate all the costs associated with developing and maintaining one).  They are a small shop with low expenses so the order flow rebate is enough to make them profitable. The lack of platform is solved by their API and outside developers.  This is the reason Tradier is not available in Canada for @Kim and others, because Canadian regulators do not allow rebate for order flow.  With regard to safety of assets, Tradier holds nothing.  They are simply an Introducing Broker to Apex who is the custodian.  Therefore, in addition to SIPC protection one should look at the stability of Apex which is very solid.

Edited February 16, 2018 by SBatch

[mrw02536 18]

Very well thought out and clear explanation. Thanks.

[mrw02536 18]

Sbatch would you make the same conclusions about Robinhood?

[SBatch 3,123]

7 minutes ago, mrw02536 said:

Sbatch would you make the same conclusions about Robinhood?

Yes.

[Javier 99]

3 hours ago, SBatch said:

There seems to be some confusion in this thread regarding how brokers earn part of their revenue.  In addition to commissions all brokers/market makers/clearing firms  also receive rebates from the exchanges for order flow.  This is Tradier’s model.  They have extremely limited overhead as they do not provide their own platform (and therefore eliminate all the costs associated with developing and maintaining one).  They are a small shop with low expenses so the order flow rebate is enough to make them profitable. The lack of platform is solved by their API and outside developers.  This is the reason Tradier is not available in Canada for @Kim and others, because Canadian regulators do not allow rebate for order flow.  With regard to safety of assets, Tradier holds nothing.  They are simply an Introducing Broker to Apex who is the custodian.  Therefore, in addition to SIPC protection one should look at the stability of Apex which is very solid.

Thanks, makes some sense, and I buy your very small overhead Tradier reasoning.  I have no idea how much rebates mean to any Broker, but what I know for sure is that many of us leave thousand of bucks in commisions in IB, and that is a sound business model. 

Thus I understand you open your trading account with Apex. Two more questions:

1) Stanislav, anything new regarding non US users?.

2) If Tradier keeps on not dealing with future options, witch of our strategies if any cannot be traded ( specially volatility ones, mainly dealing with ETNs/ETFs)?

Thanks in advance.

[SBatch 3,123]

1 minute ago, Javier said:

Thanks, makes some sense, and I buy your very small overhead Tradier reasoning.  I have no idea how much rebates mean to any Broker, but what I know for sure is that many of us leave thousand of bucks in commisions in IB, and that is a sound business model. 

Thus I understand you open your trading account with Apex. Two more questions:

1) Stanislav, anything new regarding non US users?.

2) If Tradier keeps on not dealing with future options, witch of our strategies if any cannot be traded ( specially volatility ones, mainly dealing with ETNs/ETFs)?

Thanks in advance.

We don't trade any strategies that require futures options.

[Stanislav 302]

4 minutes ago, Javier said:

1) Stanislav, anything new regarding non US users?.

Being non-US resident I successfully opened an account in Tradier 1-2 weeks ago. So I confirm, it can be done. Just contact their support.

I transfered a small amount of money to Tradier the day before the market crashed.

I found I personally do not like TradeHawk platform as it uses too much CPU. So decided to wait while ONE creates better Tradier support. Andy told me they are testing a beta version with native Tradier integration (no Internet Explorer anymore). This gives some hope ONE + Tradier becames usable solution soon.

For now I returned the money to IB (mostly need more margin there, but now is waiting for ONE to better support Tradier as well).

 

[Djtux 548]

3 minutes ago, Stanislav said:

Andy told me they are testing a beta version with native Tradier integration (no Internet Explorer anymore). This gives some hope ONE + Tradier becames usable solution soon.

That would be an interesting solution for me if ONE supports Tradier natively from within the software.

[cwelsh 1,549]

I just heard back from RH -- they will NOT support business accounts, only individuals. 

[mrw02536 18]

Are they trading options on their mobile app?

[Djtux 548]

5 minutes ago, cwelsh said:

I just heard back from RH -- they will NOT support business accounts, only individuals. 

How about Tastyworks ? I believe they are using Apex Clearing. The capped commission structure might be interesting if executing large number of contracts.

[cwelsh 1,549]

I've got an account open at TW and doing a one month demo on it.  They're great so far (actually on about 2/3 of the trades, getting better fills than on IB)

[SBatch 3,123]

Creating Alpha's Tradier/TradeHawk bundle is now available!

https://steadyoptions.com/forums/forum/topic/5165-creating-alphas-tradiertradehawk-bundle-package/

[lrfsdad 10]

I opened a small account at both tradier and robinhood so I can compare to IB.  Tradier is not yet funded, but robinhood allowed me 1000 in useable funds once small ach deposits were verified.   This allowed me to take yesterday's csco trade.  I was filled at the official price on robinhood for the long straddle $2.51.  I was also at IB, but was about 50 mins later and it was in blocks (50k acct).  Because of a movement in that 50 mins in the underlying I did get a $0.02 better credit on the short strangle though at IB.

Robinhood does not send out daily statements showing what clearing fees I paid but the commission should be zero. My commissions to do same size at IB breaking down my daily statement appear to be $6.61