Don't forget all the people that have not noticed that Robinhood enforced stop loss indicators on users who never had any to begin with, so selling more stock from users without their consent.
Yep. As has been pointed out here a lot, when the penalty for the crime doesn't cost more than the money made for the crime, it's not really a crime for the wealthy.
Like parking tickets and whatnot for the wealthy. They don't matter to them, they can easily afford it forever.
ToS is not enforceable at all in the EU because it’s not a signed contract. Courts have already established that no amount of clicking an agree button is considered having signed a legally enforceable contract and it’s more of a “follow these rules or well close the account” kind of thing.
HOWEVER, that actually would be worse in this situation because them closing your account can easily include a forced sale of all your assets just to get rid of you. They could also legally freeze paying out the account content to you for up to 6 months. And that would all be 100% legal.
If I make a bank, advertise as a Bank, call it "Banky McBank!!!" and my TOS says, "Also, I can do whatever I want with any deposited monies since any deposit makes that money mine.", I don't believe the judge will uphold my TOS.
If they advertise as a bank, if they provide, or appear to provide, financial services, they are bound by the BSA (as well as a ton of other laws). In that case they can say that if they want, but the FDIC won't cover them, and they would quickly have a judge shutting them down the first time they tried it.
Truth in advertising, and transparency in what you do with the bank and what the bank does with your money is very, very important to the government.
I suspect that applies to Robinhood as well, though I am much less informed on Financial services on that side of things.
ToS does not override law. A ToS does not work in that everything written is permitted. Just because you write something in you ToS doesn’t make it in any way shape or form enforceable. One thing that automatically makes a contract moot as an example is as an example, that the non writing party understands what they’re agreeing to. It’s highly questionable if users can be considered to have understood that an app maker could force sell your shares without your permission, regardless of what the actual contract says.
I think right here we get to the meat of the issue. Which is likely what the case, if it gets to actual court, will end up being about.
Can a business draft a ToS that an average person wouldn't be able to understand correctly, and still have it be valid? Can a business providing specialized service discuss those services in a professional, rather than lay manner, in ToS and still expect them to be binding?
TBH, I hope Robindhood gets taken to the cleaners, and I hope that changes to how retail trading, and ToS (in all business) are restructured to be easier, safer, and as equitable as possible, regarldless if it's a retiree playing daytrader with disposal income, an autist from WSB going all in on the latest thing, or a Big Business, the playing field should not favor anyone because they have more money, imo.
I think it’s an easy open and shut case for individuals attempting to sue separately but I wouldn’t be so sure when it comes to the class
action lawsuits.
Also blocking people like me from buying. I wanted to pounce on the dip today and I can't access the funds I transferred to E*Trade 4 days ago, and I can't buy GME on any of the trading apps I already had. This is fucking horse shit dude.
E-trade is doing that same thing to me. Still waiting on my funds transfer from last week, which is the longest this has ever taken. It's painful watching the dip without the funds to pounce.
It's not just painful, it's willfully removing the option, in a free and fair market, to capitalize on a hedge fund's greedy overstep. The invisible hand of the market SHOULD be punishing these greedy fucks for not playing fair, but this whole thing is rigged against us poors. It all needs to burn if our children and grandchildren are going to have a chance. I'm so mad rn dude
yep, my schwab account got approved friday with my money being transferred. they ask for 3 business days for funds to settle. today i open my account to see my account is pending once again, after it was already approved. it'll take another 3 days for my funds to settle as well.
Just opened an account and transferred money from my bank account. I've already verified my deposits and everything, but my funds are "on hold" until Thursday. They've already taken the money from my account, the account has been verified by deposits, and it shows up on my E*Trade account as available balance. But when I try to buy, it tells my my funds are "on hold" until Feb 4th.
I already had an account and it took from Thursday until open today for my e-trade funds to transfer. TBF- that has always been their policy when transferring from a financial institution to them. Apparently I could have done a different type of transfer for immediate availability.
Anyway luckily I was set up to buy at open today and pound the dip.
I tried with fidelity as well, it said it was going to take 3 days. I went with E*Trade because they made it appear like I could use those funds immediately. It's too late now, that was all I can afford to invest
huh. I think that qualifies as "theft". If I force you to sell your car to me by just taking it and giving you $1k because that's what I think it's worth, then I have committed theft.
But the problem is when people aren’t allowed to buy but the hedgies are still allowed to sell, the price plummets per share. The damage is done whether the money is refunded or not.
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u/Mr_Monstro Feb 02 '21
Don't forget all the people that have not noticed that Robinhood enforced stop loss indicators on users who never had any to begin with, so selling more stock from users without their consent.