geeks to prove them wrong.
Stanford grads Vladimir Tenev and Baiju Bhatt
have built a mobile stock trading app called "ROBINHOOD" that appears to be currently functional in the U.S.A as we speak.
Current plans are under way to get approval to function in Australia next.
Will Canada be next??? I certainly hope so.
Whenever someone talks about ZERO commission fees for stock trades, the question arises as to just HOW the company"Robinhood"will glean their earnings. Will they tack a couple cents on the spread between the bid and the ask? Or will there be hidden fees to produce some menial ikky things like "end of year " tax forms??? Investors want to know....
Well there's still time for me to do more research. As a canuck, ROBINHOOD is still beyond my reach as you need to be an American resident to use their app as of now.
You can guess that the other discount brokerages are gonna watch these developments like a hawk and do their best to discredit what "Robinhood" has to offer.....perhaps even going so low as to question the "safety and security" of trading via a "free" app.
But once all the flurry settles down and ROBINHOOD becomes functional all across North America, perhaps it will really just heat up the competition and thus drive down commission fees for all discount brokerages worldwide. ALL discount brokerages are going to have to prove themselves all over again, as to why we should be willing to pay good money for the "privilege" of giving perfect strangers our money to trade stocks with.
I am delighted with the ROBINHOOD invention and I wish them all the best. I pray that they will maintain their "free" trades policy long enough for many of us to make some great big bucks.