buckgrad04 2 Posted June 30, 2019 Question for some of you experienced swing traders. I am just starting to learn swing trading and am having a hard time finding a reason to not use a $0 commission broker like Robinhood and Webull. After reading several reviews it seems that charting and other essentials are sufficient at these $0 brokers. The only negative I have consistently read is that they don't offer OTC, Options, Bonds and Crypto, which I don't want to trade those anyways. And Webull also offers a sim account. It all seems too good to be true so I'm hoping someone can talk me out of going to one the $0 commission brokers (for swing trading only). Share this post Link to post Share on other sites
Abiel 472 Posted June 30, 2019 Robinhood´s revenue comes from selling its customers’ orders to market makers. There is no free lunch. https://seekingalpha.com/article/4205379-robinhood-making-millions-selling-millennial-customers-high-frequency-traders Abiel Guerra BBT Team [email protected] @abielguerra Find your answers in our Knowledge Base Share this post Link to post Share on other sites
buckgrad04 2 Posted June 30, 2019 Abiel, I read that article in a previous post of yours. I'm still having a hard time wrapping my head around how this negatively impacts a small retail trader like myself? They sell my order flow to a market maker, who can't front run, and do they really care about my 100 shares of AAPL? Share this post Link to post Share on other sites
Abiel 472 Posted June 30, 2019 I guess computers don't "care" about anyone, they just go after all those stop orders... Abiel Guerra BBT Team [email protected] @abielguerra Find your answers in our Knowledge Base Share this post Link to post Share on other sites
RTrader 20 Posted July 1, 2019 I think you should try it. If you are swing trading on daily charts, and entering at the close of the day using limit orders (I assume RH allows limit orders) then seems like it would not matter what they do with your order. Yes execution is probably slow, but for swing trading none of that matters. You are going for the big moves. Which also means commission shouldn't matter. For swing any broker works. I know a guy who is a total fool when it comes to trading. Knows nothing and uses Schwab. He is up over $4 million on AMRN he bought in the $2 range. So it doesn't take anything fancy to make serious money! Good luck! Share this post Link to post Share on other sites
