Greed, it’s been said, is good.
You know what’s better? Free.
As in, buying and selling stocks for free, with Robinhood, taking sign-ups now.
“Our benefits are zero commissions for listed stocks, and a focus on mobile,” says a Robinhood rep.
Which means you get a zero-dollar way to buy and sell stocks, as opposed to the typical $8-$10 per trade.
All via three taps on a smartphone.
So, you ask, "How do they make money?" They don’t; not yet. They just have some big investors — Google, Andreesseen Horowitz — and a promise to offer more “premium services” in the future.
Before you get too Gekko on us, know that Robinhood isn’t getting you into the high-frequency, algorithmic world of Flash Boys.
This is consumer buying, plain and simple.
Sign-ups start now. You’ll get a beta invite “within a few weeks.”
Until then ... Hey, Flash Boys is a really good read.