I knew that Instant is a margin account. I didn't enter the terms ignorantly.
1. How does RobinHood make money?
2. Why are the bid-ask spreads so much greater on their platform versus others?
3. Why doesn't the application show you how much buying power is coming from the Instant account's margin account versus your own cash?
4. What will the SEC think of a company that misleads novice investor-consumers into a margin account that is branded merely as instant access to funds (even though the terms you have to accept state it's a margin account) and then obscures the actual amount of margin buying power to be used in the app's UI? It's absolutely in RobinHood's business model's financial interest to keep user's money in said margin accounts. That misaligns the company's incentives with the goals of the customers.
1. How does RobinHood make money?
2. Why are the bid-ask spreads so much greater on their platform versus others?
3. Why doesn't the application show you how much buying power is coming from the Instant account's margin account versus your own cash?
4. What will the SEC think of a company that misleads novice investor-consumers into a margin account that is branded merely as instant access to funds (even though the terms you have to accept state it's a margin account) and then obscures the actual amount of margin buying power to be used in the app's UI? It's absolutely in RobinHood's business model's financial interest to keep user's money in said margin accounts. That misaligns the company's incentives with the goals of the customers.