Also with Robin Hood, much like Facebook and other free products, you are the product. They get trade information of general customer sentiment, and that data is worth more money than anything they could make on commission. This was the heart of the congress hearings... Payment for Order Flow, where Robin Hood took this information, gave the customer worse execution and benefited.
- No attention to the quality of core infrastructure.
- misleading information about customer ability to trade on margin ,cash in customers accounts, risk, and margin calls.
- failed to exercise due diligence before approving customers to place options trades.
- policy to not report certain failures and complaints to to FINRA.
- several other issues like bad customer identification.
Robinhood is designed to be cheap, easy and addictive. It's all that. The cost is quality.