Robinhood Markets advertises rock-bottom fees for options trading—but a new study finds that its customers face hidden costs far higher than those of other brokers.
Robinhood Touts Rock-Bottom Fees for Options Trading. Then Come the Hidden Costs.
byu/I_Love_Fones inoptions
Posted by I_Love_Fones
3 Comments
> Retail brokerages often try to fill customers’ orders at prices within the bid-ask spread. Getting orders filled in the middle of the spread benefits investors because it means they save money on purchases, or earn more money on sales. The study found that Robinhood was more likely than other brokers to fill orders near the extreme ends of the bid-ask spread.
I wouldn’t say this is a “fee”. It just seems like the authors didn’t know what a limit order is
this why i only use fidelity. rh is for uninformed and inexperienced retail traders. they get lured in by 0 commissions and then give it all back, and more, on pricing.
This is such a stupid article, its the reason why you use Limit Orders. instead of clicking buy, confirm like a monkey at whatever quote they give you. Robinhood is an excellent brokerage backed by JP Morgan and is growing like crazy. No other app beats the UI, and they are the reason fees are as low as they are in the industry now. I’m not sweating cause some dumbass at WSJ doesnt understand limit orders and the spreads.