Tag: Robinhood

The Cryptocurrency Craze Is Driving Digital Wallet Innovation and Adoption

The Cryptocurrency Craze Is Driving Digital Wallet Innovation and Adoption

More than a decade after the initial Tech media buzz digital wallets are enjoying adoption largely driven by stimulus check processing and more recently the cryptocurrency craze. The pace of innovation is accelerating as digital wallets incorporate equity trade execution, cryptocurrency transaction capabilities and more. Many will know of PayPal / Venmo, Square's Cash App, … Continue reading The Cryptocurrency Craze Is Driving Digital Wallet Innovation and Adoption

FOMO Is Stronger Than Ever

FOMO Is Stronger Than Ever

FOMO is stronger than ever given social media, the 24-hour news cycle and various fintech apps that facilitate equity trading. FOMO ("Fear Of Missing Out"), is stronger than ever, especially among the retail trading community. Retail traders are flush with cash coming off of 2020's Federal Government issued checks and enhanced unemployment benefits. Technology has … Continue reading FOMO Is Stronger Than Ever

The Free Trading Business Is Getting Crowded. Webull and Square Have an Edge.<span class="badge-status" style="background:red">Premium</span> 

The Free Trading Business Is Getting Crowded. Webull and Square Have an Edge.Premium 

Webull - the China-based fintech firm - is the latest entry in the commission-free trading space along with Robinhood, Square and Fidelity to name several. These zero commission stock trading apps have enabled the equity bubble in part. A key element of these platforms is fractional share trading which enables retail equity traders to buy … Continue reading The Free Trading Business Is Getting Crowded. Webull and Square Have an Edge.Premium 

Two Different Approaches To Growth: Fintech vs. Legacy Asset Managers

Two Different Approaches To Growth: Fintech vs. Legacy Asset Managers

Robinhood and other Fintech firms are using Social Media-based principles and tools such as "gamification" software to drive customer growth and usage. Legacy Asset Managers are taking the M&A route. Order Flow Revenue or "Pay-to-Play Revenue" is the revenue that Asset Managers generate from directing equity and options order flow to various trade execution firms … Continue reading Two Different Approaches To Growth: Fintech vs. Legacy Asset Managers

Consolidation Will Not Save Asset Managers

Consolidation Will Not Save Asset Managers

Mass Mutual and Athene made a bid for American Equity Investment Life. Activist Trian took stakes in Invesco and Janus in an effort to build one of the largest Asset Managers. M&A is a quick way to scale AUM, but it does not change the paradigm for legacy Asset Managers. Legacy Asset Managers (and depository … Continue reading Consolidation Will Not Save Asset Managers

High Frequency Trading Operations Have Traded Ahead of Order Flow For Years. The Practice Stinks.

High Frequency Trading Operations Have Traded Ahead of Order Flow For Years. The Practice Stinks.

High Frequency Trading ("HFT") operations have purchased order flow in order to trade in front of it for years. The fact that Robinhood didn't properly disclose its practice is missing the larger issue. This practice provides HFT operations with an enormous advantage. HFT's powerful machines glimpse order flow and execute proprietary orders that benefit from … Continue reading High Frequency Trading Operations Have Traded Ahead of Order Flow For Years. The Practice Stinks.

The Rise of Fractional Share Trading

The Rise of Fractional Share Trading

Robinhood (pvt.), Fidelity (pvt.), Schwab (tkr: SCHW), SoFi (pvt.) and Square (tkr: SQ) each have fractional share investment offerings. Fractional shares enable investors to purchase one U.S. Dollar's worth of a given equity ($5 in Schwab's case), rather than a full single share. For example, investors may purchase $1 worth of Amazon (tkr: AMZN) rather … Continue reading The Rise of Fractional Share Trading