Published On: February 21, 2017

According to a New York Times article last week, there is a new trading app in town that doesn’t charge a commission for its users. Robinhood Markets, a start-up, was introduced in December 2014, and since then has executed more than $30 billion in trades, up from $2 billion in 2015. The app has one million users. The company makes money from interest on customer cash balances and there is no minimum deposit to register an account. There are no trading fees for customers who purchase and sell U.S. listed stocks and exchange-traded funds. Some are wary of the app, stating that the illusion of free trading leads to frequent trading, which can be a cause of bad investment returns. Currently, there are some issues with the app, such as complaints have been made about its customer service and the time it takes (up to eight days) to transfer money from a Robinhood account to a bank, or vice versa. The app was created by Vladimir Tenev and Baiju Prafulkumar Bhatt, Stanford graduates who used to make high-frequency trading software for hedge funds and banks. The company makes money from “payment for order flow,” which is the money it receives for selling its orders to market makers to be executed. The app now has a Gold program, which offers margin accounts and after-hours trading, for a fee: five to six percent interest on margin accounts, whether the customer uses the credit line or not. Please call our securities law firm at 312-332-4200 for a free consultation about your options of suing Robinhood Markets.

Disclaimer

The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.

Chicago Investment Fraud Attorneys Offering Nationwide Representation to Investors

If you have suffered financial losses because of the negligence or fraud of your financial advisor or broker through unsuitable investment recommendations, over-concentration, churning, misrepresenting risks, conversion or selling away, you have legal rights and options to pursue recovery of those losses.

Stoltmann Law Securities Investment Fraud Attorneys