Why Does Robinhood Have a Hated Reputation?

Robinhood is a recognized new star in the stock marketing industry, even although it does not have a very good reputation.

By Thorsten Steins
Edited by Taj Schlebusch

Published April 27, 2021.

Robinhood is certainly one of the most popular and well-known apps in the field of online trading. In the spirit of the Robinhood legend that tries to relieve the rich of their money and give it to the poor, the idea behind the platform is to counterbalance the big investors in the International Evil.

The reputation Robinhood got in the last month is mostly due to how it is organized. It is astonishing that this reputation also crept over to parts of Europe, although the app isn't even available there.

Robinhood is especially interesting for small investors and promises them outstanding opportunities for profit-taking through organized buying and selling. In fact, a large number of buy recommendations are given here, but many shares are also excluded from trading on the app from the outset.

Also, there are no real training opportunities here. Consequently, many users of the Robinhood app actually have no real idea about stock market trading and only invest their entire reserves in stocks because of the suggested profit prospects; the lack of knowledge has many new investors losing their money.

This leads to considerable discontent among Robinhood users. Also, Robinhood is perceived as a threat at the stock exchanges since it can affect the possible course and stock exchange movements at short notice and unexpectedly by purposeful trade of large share packages, which substantially increases the risk of other investors outside of Robinhood.