question Stock Market and Robinhood - please, explain

[DmMoscow]

Hi!

I had discussed an article with a friend recently, about how does "RobinHood" makes money. Not returning to those exact problems, we couldnt rsolve a more general question: why do you need robinhood (or any other similar products) at all?

I'm not talking about going in person to a nasdaq, but isnt it just another middle man between you and a thing you want to buy/sell?

Arent there more streamline ways for an average person to buy stocks in NA (both, Canada and USA)?

 

To be clear: this is not a question, how do stocks (and other equities) work, as I had lessons on it in uni and i have some personla experience by now. But it seems that ways of accessing stock market differ between countries.

 

P.S. I rewatched TechLinked on "Robinhood" topic and didnt find an answer.

P.P.S. Thanks in advance for your answers.

[Tristerin]

On Robinhood you dont own your stocks or crypto - you own shares in the crypto and stocks they purchase (basically)

 

Plus this exact answer is on their website.

 

 

EDIT - I didnt answer your why as to why a person like myself would use it - access to Doge only is why I use robinhood.  If I am going to do any F@H (you can fold for their team and earn doge btw) its for LTT, so I buy it instead.  (plus all my GPU's are currently NiceHashing for BTC)

 

Stock Market?  No thanks, crypto is for me because its the Everyman Currency

[DmMoscow]

14 minutes ago, Tristerin said:

On Robinhood you dont own your stocks or crypto - you own shares in the crypto and stocks they purchase (basically)

I get that now GameStop sells for about 150-160$ (with peaks around 350), and you may want to invest just 10$. But at the start it was only 30-40$. Was it only convenient as people did want to invest only a couple of bucks? (any other example, like tesla that goes about 650$ e piece, falls in the same category, broadly speaking)

Otherwise I still dont get it. Arent there any direct ways for an average person to buy stocks in NA? I, for examople can buy stocks even from my phone without any middle man.

[DmMoscow]

24 minutes ago, Tristerin said:

EDIT - I didnt answer your why as to why a person like myself would use it - access to Doge only is why I use robinhood.  If I am going to do any F@H (you can fold for their team and earn doge btw) its for LTT, so I buy it instead.  (plus all my GPU's are currently NiceHashing for BTC)

Thanks for your update, btw. I tried Nicehash myself, but I got only about 3-4$ after a week of mining (not 24/7) and thought it wasnt worth it for me.

[DmMoscow]

No new ideas?

[zeusthemoose]

On 5/6/2021 at 2:59 PM, DmMoscow said:

Arent there any direct ways for an average person to buy stocks in NA? I, for examople can buy stocks even from my phone without any middle man.

Some companies offer DsPPs (direct stock purchase plans) that allow you to purchase stock directly from them. These companies have varying requirements/processes to buy from them. Alternatively you can use an online broker like e-trade which allows you to pick and choose securities to buy with low-no fees. These online brokers are much more popular and common than buying directly from the company.

[DmMoscow]

19 hours ago, zeusthemoose said:

Some companies offer DsPPs (direct stock purchase plans) that allow you to purchase stock directly from them. These companies have varying requirements/processes to buy from them. Alternatively you can use an online broker like e-trade which allows you to pick and choose securities to buy with low-no fees. These online brokers are much more popular and common than buying directly from the company.

This explains quite a lot (not everything, but a lot). Thanks. At least, now Robinhood seems to me as a sort of a regular broker and not some other form of comany. The only thig that still surprises me is that USA brokers are different from banks. At least, "The Big Four.

Comapring to Russia, our most popular brokers are part of banks and their comission is regulated by the federal law. This way it is very conveniet, as I can in a second transfer money between my regular debit account (not sure for the actual term, but the one, assosiated with my debit card) and my brokerage account in the same bank or the other way around. At the same time they act as a tax agents and they automatically apply taxes to your account at the end of the year, so that i dont have to declare it myself.

 

Overall, lack of that convenience when comparing to first transfering money from bank to Robinhood (or any other company) and then waiting for you application to be accepted, seemed strange to me. And that was a cause of a question.

 

Thanks for your answer!

[12345678]

On 5/6/2021 at 9:18 PM, DmMoscow said:

Thanks for your update, btw. I tried Nicehash myself, but I got only about 3-4$ after a week of mining (not 24/7) and thought it wasnt worth it for me.

nicehash sucks, it pays like shit

as long you do use pools, mining is not difficult

just pick a miner like trex or phoenix, select a decent pool and start to mine

 

[DmMoscow]

7 minutes ago, 12345678 said:

nicehash sucks, it pays like shit

as long you do use pools, mining is not difficult

just pick a miner like trex or phoenix, select a decent pool and start to mine

 

Thanks, I'll try one of those and see if there's a big enough difference to me to justifiy it.

As I only used my PC for F@H previosly, this was ony my second experience of joining some "pool"-type tasks overall and first in mining.