InvestTech, Brokerages in FinTech ST4US

By pjain      Published Jan. 22, 2021, 9 p.m. in blog Startups   

InvestTech Trends and Key Factors

Passive Index Investing Dominates

  • The 1% dump their stock to MCapWeighted 401k for lcap, and "At-any-price-get-rich-on-partials" daytrading Robinhood millennials

Market Timing

The rich dump their stock to the poor just before the market crashes.

Commission Free

Partial Stocks

InvestTech Companies

Chase YouInvest

Ally Trading

Schwab-TDAmeritrade

r Review and Compare

Robinhood

Robinhood 13m users 8m millenials Commission free Attract millenials Approved by FINRA, SEC

  1. Robinhood had to back off from 3% cash deposits on not getting FDIC. It announced it would re-launch and re-name the product, catching the attention of U.S. senators in the process who said they were “concerned” that Robinhood and other fintech companies may be dodging regulatory scrutiny.

  2. Recent 11/28/19 move by Robinhood to pull its request for a national OCC banking charter highlights the struggles a tech company can face when trying to upend the financial system.

  3. Stupid Robinhood Investors - Bullish MoMo - Crowd into Hertz Value Trap, Tesla Growth, Bitcoin enabled

  4. Hertz - screw Robinhood-esque investors by bankruptcy-fund-raising, SEC blocked

  5. BP - div raise 2.5% in Feb - little stock move, but went up 7+% on 7/31/2020 massive $7b losses, Div 50% CUT, Super bad earnings, layoffs, cut Crude/Go Green!

About

Google Ventures-backed app makers test wisdom of stock-picking crowd An app from a pair of Stanford grads, backed by Google Ventures, launched on Thursday to see just how smart the crowd is at picking stocks.

Robinhood was created by Spacetime Industries, a Palo Alto startup founded by Vladimir Tenev and Baiju Bhatt, and is available only on iPhones and iPads for now.

"This is a modern version of the investment adviser," Bhatt told me.

Robinhood encourages users to test their stock-picking acumen against others, scoring them on how accurately they predict the direction of a publicly-traded equity. It only includes about 3,000 widely traded stocks now but is being expanded.

"The results we have gotten from our beta test are pretty spectacular, in the 70 to 75 percent range for the top ones," Bhatt told me.

The app is free now but paid features are likely to come later. Bhatt and Tenev are also trying to get a broker-dealer license, so buying and selling stocks through the app may come in the future, too.

They are also keeping an eye on what the Securities and Exchange Commission does with crowd-funding rules, meaning that backing startups like theirs could come some day.

"It's definitely a space we are keeping our eye on," Tenev told me. "Robinhood is just our beachhead. More will come later."

In addition to an unspecified amount of money in their seed round from Google Ventures, Tenev and Bhatt said they are backed by early executives from electronic market maker GETGO.

Spacetime Industries marks a return for the partners after launching a few finance startups in New York City.

"There is a lot of great finance people back there but it was just too hard to get good engineering and design talent," Bhatt told me. "That's why we came back here, to here our roots are. This is where you find that type of talent.

US: Robinhood pulls request for Banking Charter

The start-up handles the app and customer experience, while the bank holds customer deposits and offers commission-free stock and cryptocurrency trading. * No longer looking to become a federally insured bank.

  • 11/27/19 Said it was voluntarily pulling its bank charter application with the Office of the Comptroller of the Currency, which was submitted earlier this year. A source familiar with the announcement said the charter withdrawal does not reflect a change in the company’s product plans.

FDIC fail

It also launched a cash management account almost a year after the botched announcement of what it called a checking and savings account with a 3% interest rate.

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