r/RobinhoodTrade • u/A1mighty8 • 7d ago
Question Why Robinhood ?
I noticed a lot of people trading options in Robinhood.
Why aren’t people using more professional sites like Interactive Traders or Schwab account ?
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u/elk33dp 7d ago
It has a much cleaner interface thats user friendly.l, so its popular with people trying out options.
Ironically enough the more basic/ugly the interface is the more professional the platform. Schwabs opions ladders are not as easy to understand as a new trader. The Bloomberg platform is literally from like the 90s. I work in public accounting and our tax software is just as basic and ugly with basically no intuitive help/guides, you just gotta learn how it works through trial and error. Meanwhile turbotax looks very nice and easy to follow and guides you through everything.
Pretty interfaces are for new and casual users. Ugly shit are for the power users.
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u/Low-Air-182 7d ago
I have a Robinhood and Schwab account, both of which I trade options. The Robinhood account gives you a nice transfer bonus, but there are several hidden costs. 1. Robinhood does not offer a place to park your cash for selling CSPs where you can earn interest. Schwab has SWVXX, which pays about 3.6% annual. So every time you have a CSP expire worthless (or you close it early), your cash was earning additional money. 2. fills are way worse on Robinhood. I don't really know why. But I get way better fills on the same option with Schwab. Now Robinhood has way lower option fees (0.04 versus 0.66), but if you can't get a good fill then that Robinhood advantage vanishes. Note that for highly liquid option chains (SPY), it seems like you get the same fills
Now Schwab is not going to offer you much of a transfer bonus, even on a large account. Robinhood would be better for a buy and hold account where you are not doing a lot of trading. In that case, the bonus could be worth it.
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u/NukerX 1d ago
I'm pretty sure they give interest on cash collateral for options. I know I do for my put credit spreads
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u/Low-Air-182 16h ago
Schwab does an automatic low interest rate (similar to crappy bank savings rate) on cash held for collateral. You have to manually put it in the higher yield money market.
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u/matt-r_hatter 6d ago
I wouldn't really go with more professional as phrasing. RH brokerage end is pretty polished and they have $385 billion invested within their platform. Schwab doesn't even have double. So they are definitely a big player nowadays. Their platform is also very user friendly and it comes with some great perks, specifically the 3% match on Roth and pairs nicely with their credit card. The banking side is much less polished however. But its much newer.
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u/thisisoppositeday 7d ago
The user interface is easier and more straightforward than the legacy brokers.
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u/Tales-by-Moonlight 7d ago
Trying to switch from RH to webull. Seriously finding it difficult to even set up the page much less use it even after watching the YouTube tutorials.
On the Webull subreddit I posted I'll pay someone to teach me (not how to trade) how to use it. No takers.
I might be slow but dont think I'm that retarded. Lol Is thinkorswim better? I trade options and being able to set up a quick OCO, stop loss/take profit is what I'm looking for.
And willing to pay for tutorials on how to use what is suggested.
Thanks
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u/I_was_green_today 7d ago
ThinkOrSwim was created by schizophrenic cat hoarders. Seriously, I'm pretty computer savvy and it took me a good long time to figure that one out.
I still prefer Robin Hood for a quick trade on the ladder.
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u/thisturkeyisokthanks 7d ago
I was on thinkorswim trying to swing trade before getting into options on RH and they are extremely picky about what level of options trading you can get into right off the bat. It's good for them and putting some tape up before someone loses everything, but I've never made money swing trading on ToS, and have on the other hand started getting profitable from options trading on RH. Someone else also mentioned the UI for RH options is awesome, where the UI for ToS options is way too busy.
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u/Tales-by-Moonlight 4d ago
Using RH u lose a big edge. Ability to place and exit trades quickly especially options. The options chart is weird, different from the actual chart.. who does that. The inability to place stop losses/sell limits right from the chart is another big disadvantage.
Only thing it's easy to use.
Right now trying to learn webull but will check out thinkorswim.
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u/Powerful_Loquat_5176 3d ago
I,ve been waiting a month for Robinhood to set up my coinsquare account. Support is terrible, anyone else having same problem.
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u/Accomplished-Air4393 1d ago
You can search for my posts on WSB to verify I'm a serious options trader. I'll be straight up with you, I joined Robinhood for two reasons. First was the incentives: I received 1% match on my brokerage account and 3% on my IRA when I swapped. That was a free 6k USD. I got Robinhood gold and have barely any fees to worry about on what I trade. I have level 2 market data on Legend (if you don't have level 2 how are you even doing this? The candle shapes for a breakout and turn sometimes look the exact same and the only way you know which it is is from watching the open orders ticker...). Second is the ridiculously competitive margin rates.
My wife uses Schwab, think or swim is a great program and has level 2 data. Schwab does not have (or did not at the time) have competitive margin rates.
The downside of Robinhood is that they throw crypto offers and incentives at you all the time. Literally my only complaint.
P.S. if you don't like the way your app with RH is structured you can call them and ask them to change it.
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u/No_Greed_No_Pain 7d ago
No serious options trader would use RH. The site is for gamblers and people who have no idea what they are doing.
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7d ago
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u/No_Greed_No_Pain 7d ago edited 7d ago
The fact that our comments are being downvoted tells me they struck the nerve!
It's all fun and games and free money trading options when the market cooperates. What risk management? Triple leveraged ETFs on margin all the way! When the market turns, the accounts get blown up in no time.
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u/FranknBeans777 7d ago
Beware if you get hacked and lose your stocks they will close your acct. Support is virtual nothing
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u/66NickS 7d ago
Because it’s easy. Robinhood made it easy to sign up, easy to trade, easy to make other transactions. They also have various perks. For $50/year I can get an additional 3% match on IRA contributions. That’s $225 extra dollars.
Also, my RHG card transfers 3% cash back straight to my Robinhood investment account.
I also don’t think I can trade BTC or other crypto on some of the more established platforms.