Money hungry pricks unfortunately do not care who dies in their tornado of scamming and destruction.
Very sad story overall, but blaming Robinhood for his death, or saying that they *literally* killed him is wrong.
This wasn't about GME. He unfortunately didn't understand how Robinhood showed spreads, and panicked when he saw he was down more than he really was.
The flaw with economics is the main premise is that everyone or nearly everyone is a thoughtful rational person.
Milton Friedman, Gary Becker and other Libertarian economists had the ear of Richard Nixon. I believe first discount brokerage firm was 1975. Discount brokerage firms gave clients an opportunity to purchase and sell equities for less than 5% (roughly 2 1/2% for a quick exchange of one security for another security). Discount brokers in mid-1970s usually offered commissions in (3.75 to 2)% range.Full-service usually then and today, a broker then and a full service advisor today will talk most clients out of attempting to trade derivatives. Discount brokerage firms offered a bit of hand holding for derivative trading from mid-1970s to mid-1990s. AOL offered flat rate phone rates since about 1997 or 1998. We have had cheaper and cheaper on-line discount brokerages since..
Just like in 1975, discount brokerage clients did worse than full service clients, discount clients today do worse than full service clients. A clinical psychologist was brought in years ago to our investment firm for sales training. Said clinical psychologist told us 70% either have some mental illness or a learning disability. I wonder what Friedman or Becker would have said about that? Discount brokerage firms basically give you for what you pay. A young client pays next to nothing, one gets next to nothing in service.
comeon wrote:
Very sad story overall, but blaming Robinhood for his death, or saying that they *literally* killed him is wrong.
If you read the article it's very clear robinhood is 100% responsible for his death. They told him he owed 750k and that he needed to pay 170k immediately. He only had 16k in his account. Turns out those messages were wrong and he owed nothing, but he wasn't sent that message until after he died.
Robinhood has also been exposed as a tool to make wall street and hedge funds richer. They are actually not looking out for the little guy like they claim.
This lawsuit will put them out of business and even some executives in jail.
Jeboris (not a sheep) wrote:
Money hungry pricks unfortunately do not care who dies in their tornado of scamming and destruction.
Wasn’t the guy who died a money hungry prick, trying to turn a quick buck?
willarnett wrote:
Jeboris (not a sheep) wrote:
Money hungry pricks unfortunately do not care who dies in their tornado of scamming and destruction.
Wasn’t the guy who died a money hungry prick, trying to turn a quick buck?
Everyone has to make money. Difference is the guy who died was doing it innocently while the host was doing it by fraud and evil intentions. SCREW YOU for taking what I said out of context and twisting it in your own sick way. You are sick in the head!
stop it please wrote:
comeon wrote:
Very sad story overall, but blaming Robinhood for his death, or saying that they *literally* killed him is wrong.
If you read the article it's very clear robinhood is 100% responsible for his death. They told him he owed 750k and that he needed to pay 170k immediately. He only had 16k in his account. Turns out those messages were wrong and he owed nothing, but he wasn't sent that message until after he died.
And he tried to contact them and they wouldn't respond.
Once again people don’t know how to use literally
You don't understand what literally means, Mr Moran.
At that specific moment he was 170K in the hole. It's his own fault for not understanding how exactly trading options works. If he did, he would have known that it was just a temporary thing that would work out somewhat in due time. This kind of stuff is exactly why there need to be limits on what novices are allowed to do on trading apps. And is partly why clearing houses started to clamp down on trades during the GME fiasco. Could they have made contacting support easier and better? Yes. But anyone who offs themselves so quickly clearly had previous mental issues...
Said clinical analyst revealed to us 70% either have some dysfunctional behavior or a learning handicap. I can't help thinking about what Friedman or Becker would have said about that? Markdown financier firms fundamentally give you for what you pay. A youthful customer pays close to nothing, one gets close to nothing in assistance.
stop it please wrote:
Robinhood has also been exposed as a tool to make wall street and hedge funds richer. They are actually not looking out for the little guy like they claim.
This lawsuit will put them out of business and even some executives in jail.
How is destroying one of the only places to make commission-free trades going to help the little guy?
Maybe the little guy should put his money in "high yield" savings accounts and almost keep pace with inflation instead.
News flash about retail investing, you don't have to do it the stupid way. Just buy index trackers and hope the economy doesn't collapse.
20 is not a kid. He was not even a teenager.
Robin hood did not kill him. He, an adult, killed himself.
You are the kind of ignorant person mentioned in the above article who should not be investing on your own.
Dirty Sanchez. wrote:
20 is not a kid. He was not even a teenager.
Robin hood did not kill him. He, an adult, killed himself.
You are the kind of ignorant person mentioned in the above article who should not be investing on your own.
Is it possible that perhaps this individual bears responsibility for his actions AND Robin Hood has acted irresponsibly in ux decisions regarding options trading , negligent customer support etc? These two things can exist on the same plane of existence.
To me it is pretty clear Robin Hood needs to clean up its act a bit if it is going to continue to scale. This story is guaranteed to repeat itself unless they address some fundamental issues that will like also pay dividends re customer satisfaction. Honestly, given the whole GME fiasco and issues with the stability of the platform it doesn’t seem like a very well run company.
There are two distinctly different tiers of ethics and standards in U.S. financial services industry:
1) N.Y.S.E. broker-dealers and all their employees;
2) Everyone else employed in commodities, futures, derivatives and financial services.
There are thousands of people guilty of insider trading and other market manipulation. Ever wonder why Martha Stewart was singled out and forced to do prison time? Martha Stewart formerly was a Merrill Lynch broker. She was punished with prison time for being a former M.L. broker. Stewart was not even convicted of insider trading which Stewart may or may not have done. Stewart was guilty of lying to F.B.I. I have family members who tell lies nearly every time they talk. I hope they never get questioned by F.B.I. Some people cannot talk without telling lies.
When now Bank of America Merrill Lynch clients lose money, no one says: The client-investor brought it upon her or his self. He or she should have known better.
Hedge funds screw over the little guy, on-line discount brokers clean out their clients, we then get 90% Libertarians defending discount brokerage firm and blaming the clients. Libertarians are Libertarians until they need help of government.
Discount brokerage firms now function as if Auto Zone & O'Reilly Auto Parts sold all their inventor for less than $1. Just think if Auto Zone and O'Reilly Auto Parts had enough resources to drive most full-service mechanics out of business. Road travel would be less safe. Fatal mechanical errors would be blamed on foolish Auto Zone & foolish O'Reilly Auto Parts customers by Libertarians on Let'srun. Hedge funds and discount brokerage firms need to suffer greater regulation. Hedge funds & discount brokerage firms need to be regulated to the extent they are forced to pass some of regulatory expenses onto their clients. Trading for almost free is not helping society. Hedge funds and discount brokerage firms do not do all what full-service firms do: I.P.O.s, primary offerings and thousands of bond analysts. The system cannot go on like this forever.
I have accounts with 3 different brokerages that no longer charge for trades. There are many brokerages that don’t charge for trades now. Cost per trade isn’t the problem. Stupidity is.
The following brokerages offer free trading.
eOption
Ally Invest
Webull
Firstrade
TD Ameritrade
Robinhood
E*TRADE
Merrill Edge
You Invest by J.P.Morgan
Vanguard
Fidelity
Charles Schwab
stop it please wrote:
If you read the article it's very clear robinhood is 100% responsible for his death. They told him he owed 750k and that he needed to pay 170k immediately. He only had 16k in his account. Turns out those messages were wrong and he owed nothing, but he wasn't sent that message until after he died.
This lawsuit will put them out of business and even some executives in jail.
That is an artifact of options trading, but even if it was a 100% erroneous email, it doesn't follow that you kill yourself.
No way anyone goes to jail. This lawsuit will be either thrown out or settled out of court.
Most of the zero fee trading world and Robinhood are able to provide free brokerage services because they sell your trading info to big hedge funds. So, when you think you have some hot tip from reddit or youtube and go long of short or whatever, the giant hedge funds are immediately alerted to the activity and are able to use their size to get on the opposite side of your bet and win. Gamestop was in large part an attempt to revolt against this. But it did nothing as only a few hedge funds got beat up and Robinhood and the other fintech zero fee sites are still selling trading info. Plus, a lot of retail investors had big losses because they were not able to time their trading and got stuck when everyone went for the exits. Robinhood does not democratize Wall Street. It just makes you think that you are winning when in fact you are helping the hedge funds beat you at the end of the day.
Also, these fintech companies like Robinhood are a lot more tech than finance. Robinhood is very dangerous because it allows retail investors to trade on margin by opting into the "gold" level, which just costs $5 a month. It is like going to a casino, giving the cashier $1k and getting $10k in chips to gamble with. But if you lose, you have to come up with cash to cover the chips you lost. And the worst part is that Robinhood allows instant cash transfers from your bank account of up to $1,000.00. That is another big reason people get into big trouble. They put cash in thinking that they will win their bet and then find themselves out of money at the end of the month to pay their bills.