Twitter poll: ignoring the current controversy and just looking at Robinhood's core business model, does its basic function (allowing and encouraging users to trade individual stocks) make its users better or worse off? (reposted this poll to avoid a confusing double negative)
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W odpowiedzi do @2plus2make5
I don't think this is Robinhood's unique core functionality. Tons of investment platforms allow users to trade individual stocks. Robinhood's unique angle is that you can trade them *commission free*, which I think is probably related to the subtext of your question.
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W odpowiedzi do @AndrewLBeam
I think other platforms allow now you to trade commission free as well? https://www.bloomberg.com/news/articles/2020-12-19/robinhood-s-role-in-the-gamification-of-investing-quicktake … (Not sure - I don't trade individual stocks cuz I think it's a bad idea.) Overall, my sense is Robinhood uses multiple nudges to encourage active individual stock trading.
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W odpowiedzi do @2plus2make5
I think that's right, and commission-free trading was likely the result of pressure from Robinhood. I do think Robinhood uses lots of "lessons" from social media apps to encourage engagement at a higher rate than other platforms.
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W odpowiedzi do @AndrewLBeam
That's my understanding too. But I'm a very boring person financially (as I describe here - https://epierson9.github.io/financial-advice/ …) so I haven't used the platform; my impression is based on reading media articles.
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I used similar platforms to invest, though the apps strongly encourage users to begin CFD trading where the average user will make a loss. I believe that’s the core of their business model.
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