Home Politics Stock Traders Must Ditch Robinhood App for Good

Stock Traders Must Ditch Robinhood App for Good

by Burk

In good conscious, we would avoid anyone who plays in the Stock Market World to avoid the Robinhood APP forever and shut these people down. Today, they are limiting transactions of such companies that include $AMC and $GME to closing positions only.

These frauds essentially are creating market manipulation after many on the internet decided to go after stocks that were heavily shorted – such as GameStop (GME) which ran from $19.96 a share on January 12 to $366.70 a share as of Thursday morning.  The move by people in members of the Reddit Group called WallStreetBets initiated a short squeeze to get short sellers out of their position.

The move comes as its being reported (or a theory) that Robinhood receives 60% or so of its revenue from Citadel, a firm that has heavy short positions in the market—this news is spreading to social media such as Twitter calling for people to leave the platform.

According to their message Thursday:

Our mission at Robinhood is to democratize finance for all. We’re proud to have created a platform that has helped everyday people, from all backgrounds, shape their financial futures and invest for the long term. 

We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities.

Amid significant market volatility, it’s important as ever that we help customers stay informed. That’s why we’re committed to providing people with educational resources. We recently revamped and expanded Robinhood Learn to help people take advantage of the hundreds of financial resources we offer and educate themselves, including how to make sense of a volatile market. In 2020, more than 3.2 million people read our articles through Robinhood Learn.

We’re committed to helping our customers navigate this uncertainty. We fundamentally believe that everyone should have access to financial markets. We’re humbled to have helped many people invest in the markets for the first time. And we’re determined to provide new and experienced investors with the tools and resources to help them invest responsibly for their long-term financial futures.

In response, many have taken to the internet and aired their frustration with the decision:

@Zakariyasl
Robinhood is working on an IPO and wants to have good relations with these hedge funds who will either build up its stock or destroy it when it goes public – right now they don’t care about legality

“So are @robinhoodapp and @IBKR ending trading in #wallstreetbets stocks because they are losing their ass on these trades? Or maybe they dont have the cash to enable the trades at this scale?” asked Dallas Mavericks owner Mark Cuban “Anyone have any insight on their economics?”

Barstool Sports founder Dave Portnoy said, “Somebody is going to have to explain to me in what world @RobinhoodApp and others literally trying to force a crash by closing the open market is fair? They should all be in jail.”

 

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