Robinhood is the controversial trading app behind Reddit's GameStop surge

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So at this point everyone knows about the massive run-up of game stop stock. Although at this point it's it's a bit on a decline this morning. We'll see where it actually goes but let's talk about the training app. That really has been a play a central role in this. And that's robin hood. keep briefly. Describe what robin hood is sure. So robin hood is its own. Investing app is launched Won't watch twenty fifteen and it was designed to be for to get investing for the people it's to democratize investing where there's no fees and it's been a hit with millennials that makes primarily of its Accusers are millennials. Who want to either. Learn how to invest. A word tried different than try to put their money in different stocks. It's it's become very big. Especially has we all become aware of with the sub. Reddit wall street bets right before this all hit of the last week or two or three quarter note. That robin hood had become extremely popular over really the last year during the coronavirus lockdown right with the law people at home i'll folks with disposable income younger folks and not much also do investing and trading through robin hood had been a avenue new trend. So i'm curious. How robin hood works differently than some of these other services. Because we've got e-trade td ameritrade a number of these brokerage firms that also allow for trades. How does robinhood sets off apart. What one of the big reasons why would sits at apart as well as being a big reason why it's popular with wall street. Bits is that it allows for all these extra options when it comes to trading sucks it allows you to do put all these terms that are essentially bet hence the reason why wall street bets likes it so much because you could go wit put in a couple of hundred bucks and you could actually take some money out on margin and that means you borrow the money so say can make these bets on stocks and a lot of other apps. Don't do that. There's a acorns and s-o-f-i and there's all these other investing apps that do allied to buy shares and a do it for free like robin hood but need they don't let you do all these different fats. Different options that you can actually make really big money very quickly. And that's why with wall street beds. It's become such a big deal there because that's kind of they created this environment where you say. Hey i'm going to spend. I just got a i just got my student loans and i'm gonna put it all on apple and they just cheer you on. Just say yeah do it and try to make a lot of money. Our try to lose a lot of money. They tell you on that you lose money. So that's why they robinhood because you can't really do these kind of bits and a at these other apps or even like your bank your baked me let you do different kinds of investing. But it doesn't you all the very intense and very risky but also big returns bets like Robinhood does return a really big losses. There's a reason. Why a number of these investment mechanisms think things like investing in puts and stock options. Though those are there's a huge potential for losses with this kind of investing a traditionally. This been really been reserved for more traditional dusters. That's part of the reason why it's courted. Some controversy right like this is a company that even before all the game stop. Hoopla has been accompanying that has caused some controversy and some criticism for the way that it's gamified the investment process. Yes especially last year. there was a bug that happened last year over a it was kind of a between last year before where people were able to deposit two thousand dollars and they were able to borrow essentially infinite amount of money from robin hood. So you were having these young guys in their early twenties. Maybe like the late teens. Who were all of a sudden pudding in these Short says these other options for stocks and within seconds they were down fifty thousand dollars eighty thousand dollars and they all kind of cheered for that though. So it's it that became a. That's when robin hood really got a lot of people's Because all of a sudden these kids were losing out on big money and they were. You know there were some people that I believe there was at least one who took their life Because of it it is. It's a risk that you're putting in the hands of people that can't even drink yet and they're being cheered on by other people that are saying. Hey if you do this you could make a lot of money. Quick and things get on head

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