If I ran WSJ or the like I'd make following the journos a core feature of the product. Some offer it but it's usually tacked on as an after thought.
The order this happened in was Interactive Brokers, Schwab, TD Ameritrade, Etrade. They were obviously all prepared to do it in the event one of them went for it. Interactive Brokers did this more to give themselves a competitive edge over Schwab, TDA, and ETrade. That lasted about a day.
They also have some of the worst real time market data available (intraday), absolutely horrendous historical market data request rate limiting and more. Great brokerage, but if you're interested in API for more than orders I recommend other services for realtime data
if you just need reliable daily without 1440 minute bars going wack IB is probably ok
I think RobinHood was the first to sell the rights to trade against their users, though.
You may not always get the best pricing, and also there are no market trades as of this writing on RobinHood, but the RH UI handily beats everyone else in terms of ease of use and simplicity.
The options trading functionality, for instance is very simple. You select options and then it presents you with a list of (screen) options on whether you think stock will go up, down, or sideways. Based on that, they show you low risk, high risk call options, put options or stangles and straddles. You can place a trade with a couple of taps.
If you want to get more specific and sophisticated, you can choose the expiry dates and select your own call / put options.
Compare this to TD Ameritrades UI and Schwab's UI, it looks like some guys from the 90s, stuck in the 90s, are still working on the UI team.
Truly clunky, horrible, confusing and annoying.
Trades take considerably longer to execute than on other platforms. They tend to hide things that are “advanced”, even when it’s important for a trader to learn to use them (for example, the default Buy type is a Market Order instead of a Limit).
Most brokers have protections in place so you don’t shoot yourself in the foot. For example, say you placed a sell order on Robinhood, but want to cancel it. You have to go through 3-4 clicks to get to the order record and cancel it. Oh, and that horrible UX is a chatbot.
Robinhood strikes me as an app that was designed by folks that have limited trading experience. On the mobile app, you can’t select to view your positions by Total Return and simultaneously view your watchlist by Last Price; you must select one or the other. The watchlist of stocks is of course not going to have a total return, so the app just displays “N/A”.
What Robinhood has actually managed to capture is the “bro trader” mentality of the Trump era bull market, and for that they deserve some credit. Check out /r/wallstreetbets for examples. I think a lot of people associate millennials with being broke and having no concept of financial security, however Robinhood is making a name for themselves as the broker of millennials. It’s just a shame RH is so terrible.
Shameless plug for my employer TradeStation. We just launched zero commission Friday. I’d be interested to hear a critique of our web/mobile ui. It’s more trader oriented but I’m not an expert
You really believe that the “millennials and zoomers” actually have enough capital to compete with these traditional brokerages?
Robinhood doesn’t event pay out dividends.
You’re overselling it. Their education for options is basic at best. PLUS anyone who is serious about playing options should actually invest time in learning it.
If anything, its cleaner ui makes it easier for said demographic to LOSE money.
You may think RH is large, but I’m guessing your vantage point is from within the tech bubble.
Hmm? Of course they pay out dividends. I don't even see how it would be legal for a broker to keep a customers dividends.
Had to give up 1/4th of the article in for this one, it just goes on and on for something that can be summarized in two paragraphs.
The brokerage some of my colleagues pay to E*Trade is huge. $15 per trade to sell RSUs. And sometimes it gets too costly for them to sell RSU because of the brokerage costs.
ETrade's annoucement says that they are eliminating commissions for stock AND option trades. But the fine print says that they're still charging $0.65/contract. Apparently, it doesn't count if they use the phrase "contract charge" instead of "commission". https://about.etrade.com/newsroom/press-releases/article?qmo...
As far as I know of, only Robinhood and Firstrade have true zero-cost option trading. And even then, there can be fees involved if you actually exercise options.
Aside from the options others have mentioned, there are a bunch of brokerages that charge a monthly fee and give you unlimited trades. These are targeted at very active traders.
TLDR: While going $0 was long time coming, US brokers have other avenues of earning, unlike their Indian counterparts.