Robinhood

[Caseynotes]

Interesting developments as commission-free Robinhood head for the UK;

https://www.financemagnates.com/cryptocurrency/news/commission-free-trading-app-robinhood-to-debut-in-the-uk/

[Guest backwardation]

Interesting.... Very very interesting.

[dmedin]

Interesting, but active trading still isn't appropriate for 95% of the population ...

This will bring in lots of new people who will lose lots of money. 

 

[dau710]

How Does Robinhood Make Money?

https://www.investopedia.com/articles/active-trading/020515/how-robinhood-makes-money.asp

[LeoTrader]

I wonder how their UK offering will compare to all the other commission-free UK brokers (I can think of four off the top of my head). Free of fees or not, if your share dealing account isn't in a tax wrapper like an ISA or SIPP then you'll still be liable to pay dividend and capital gains tax on your profits. Of course, Robinhood aren't tax advisers so they don't have to tell clients this. 

Even though they're late to the UK market, they'll probably steam ahead like they did in the US. It will be interesting to see how/if established brokers respond to the extra competition. 

[dmedin]

I like that they don't charge 'custodian' fees like IG do.  £24 per quarter for what?  As the cannabis fiasco shows, ultimately you don't even have full control over the shares you buy.

[DilmorJohn]

That's really interesting.

[dau710]

We all appreciate good service and products but those things can’t be provided for free as there is always some cost.  Everyone needs to pay the bills, including IG. I think that charging fees that are reasonable is fair. IG provides friendly & professional service and companies and people should be allowed to charge or we will loose out in the long run as they may not be here because they are broke.