Hi,
Some zero commission stock brokers are starting to emerge, Robinhood is the latest example. It would be great if C2 could add support for them, as this is very good news for trading systems that trade frequently.
They offer an API on their website.
Danny
Zero commission doesn’t mean zero cost. These dealers will charge a wider bid/ask spread, so you’re just paying your commission via less favorable execution prices.
This sounds like pure marketing, similar to the FX dealers at the airport who charge ‘zero commission’ but the rates you get are terrible.
Yes, I know that’s usually the case with forex brokers who list some popular stocks alongside, offering their own bid/ask spreads for them. But robinhood.com is a real broker and you will be trading directly on the electronic exchanges just like you do with e.g. interactivebrokers.
Google and Andreessen are putting their money behind this, so it’s not some shady book dealer operating from Malta or Cyprus. With those dealers you cannot transfer your stocks in or out with ACAT.
so how does robinhood make a profit?
Mainly from the interests charged on margin accounts:
https://robinhood.com/faq/?q=how_we_make_money
I think the main draw back is that they only plan to serve US customers at the moment. Don’t know when they will roll out. Just keeping an eye on it for now.
