> They're going to lose much of their base, and they deserve to
Where are they going to go? Even with their problems, the RH app is pretty good - especially for the first time trader with a few hundred dollars. My primary brokers app and website works, but is very cumbersome. The closest thing out there might be ToS from when I used to use TDA.
IBRK has a great app, and API access so you can write your own frontend. The explanation of trades isn't as idiot-proof, though, and it won't let you trade options unless you complete a knowledge test.
IBKR is great but they have fucked up before as well. When oil futures went negative early last year, IBKR's software could not handle a negative sign and led to traders not being able to close their positions. Luckily, IBKR took it to the chin and compensated more than $100 million in losses anything their clients owed below $0.
And the apps are still not very good. E-trade, one of the classic ones, works fine on the web but the app was still problematic the last time I used it.
UI/UX matters. RH's core demographic is also more likely to be app first. In some ways this is a standard HN response that completely dismisses the UI/UX.
Hmm I've seen on r/wsb that many are going to Fidelity, while a few are trying weird apps like Webull.
But maybe a better way to put it would be "they're going to lose the trust of much of their base", which might be fine short-term but long-term isn't great for them.
These days there are a number of alternatives out there. Others have mentioned Fidelity, IBRK, TD Ameritrade (Thinkorswim), and WeBull. I'd also recommend looking at ETrade, Tradestation, Schwab, Tastyworks, or Dough.
But some of those other options did the same thing in this instance per the article. WeBull and ETrade both did the same thing as RH and halted buys. TDA and Schwab halted options. The problem RH faced wasn’t a problem unique to them other brokers who didn’t stop buys were just fortunate enough to either have more cash on hand and/or have fewer trades on GME.
You're right. I only meant to shine a light on the alternatives that one has to using Robinhood.
I wouldn't move off of Robinhood for this issue, but there are a number of other reasons that I would advise others from using the platform, including poor order fills[1], constant outages, and overall lack of features.
I use Schwab. They have the things that are actually important for someone getting started: ~free trades and fractional shares, but the app and website aren't as slick (though it does feel like a serious tool), and they make you go to more effort to get options trading or a margin account--I've never seen them actively promote either.
Anywhere but there. Who would seriously use them for their savings or investments after this? Who cares about their UI when they don’t have your best interests at heart.
Where are they going to go? Even with their problems, the RH app is pretty good - especially for the first time trader with a few hundred dollars. My primary brokers app and website works, but is very cumbersome. The closest thing out there might be ToS from when I used to use TDA.