>and probably bad for you. But they have a $5bn company and I don’t. That is far more value creation than simple armchair criticism.
Not necessarily. It's not value creation when you are creating a bubble and letting people do things they probably shouldn't be doing.
Did it end up to be "value creation" when banks were allowing people to buy houses with 0% down and variable interest rates?
Because from what I hear other people saying about Robinhood, they are making money from interest on margin trading. Meaning they are encouraging their users to be trading on margin and then act like "trading is free, see no commissions!". Yeah that's great until you have millions of people invested long on margin and then the market tanks and they end up losing more than they even had.
So yeah, not too sure about the value creation here...
Not necessarily. It's not value creation when you are creating a bubble and letting people do things they probably shouldn't be doing.
Did it end up to be "value creation" when banks were allowing people to buy houses with 0% down and variable interest rates?
Because from what I hear other people saying about Robinhood, they are making money from interest on margin trading. Meaning they are encouraging their users to be trading on margin and then act like "trading is free, see no commissions!". Yeah that's great until you have millions of people invested long on margin and then the market tanks and they end up losing more than they even had.
So yeah, not too sure about the value creation here...