A lot of posts going around about Robinhood suffering this week, possibly going bankrupt, because they have started limiting trades on many stocks now not just gme. Since t212 has the same business model do we have anything to be concerned about here?
They don’t have the same business model. Nothing to worry about.
the business model isn’t actually the same. T212 has none of the same issues in comparison
Highly unlikely RH will bankrupt.
I’m often wrong
As others have said, 5 mins of research would have shown 212 does not have the same business model.
you are probably right in this scenario LOL.
had RB been unable to draw on lines of credit this would be a very real scenario. but they were so their creditors deemed them capable of repaying their debt.
the lawsuit might cause things to take a turn for the worst, but currently RB is shaky, but still okay.
Even if T212 were to go bankrupt you are protected. Again 5 minutes of research. My advice is don’t trust anything you read on these places where they have these “rumours”.
Far better to do your own research and look for things such as this below:
Not sure if bankruptcy is a threat but they are under investigation for manipulating price by the SEC, and that can only mean that Interactive Brokers will be under the microscope too.
Must be a worrying time for T212 and other platforms, Thursday’s restrictions were a real faux pas.
correct me if I am wrong, but the reason Robinhood is facing investing is because they sold the shares on their clients behalf when it is illegal for the broker to do so.
IB only cut off access, which isn’t illegal, because its in the approved terms that they don’t have to guarantee access to any and all instruments at any given time.
however I have heard similar claims as those against RH from people who don’t understand how the negative balance protection works in cases of extreme volatility for T212 and similar brokers, so it may not go anywhere if this is what really happened.
what fun times we live in
They won’t be worried because they didn’t do any illegal. They have the right to place restrictions on trades during periods of volatility.
The RH thing was something completely different.
Thanks for the links, I’m satisfied T212 is covered by the FSCS. But by same business practices I was thinking along the lines of commission free, making money via their spreads and volume of trades. What’s special about Robinhood that is causing the rumours of bankruptcy?
Should we be recording a monthly total with evidence of what shares we hold incase we need to make a claim to FSCS or will this data all be held and made availabe by T212 should the worst happen?
You get a monthly statement and a daily contract note sent from 212 the next day. That not sufficient?
Yeh that’s perfect, just wanted clarification on what we should use. Thanks.
should the worst happen you would also be in contact with T212 to nominate an alternative broker for the transfer of your shares and funds. they wont just up and vanish, they would be working through all of the clients to get your stuff moved in accordance with your wishes as regulations require.