Marketing scam or legitimate trading platform?

 
Essentially they are saying you can trade stocks online for free. I'm thinking they're going to gather everyone's information for this supposed "waiting list" and then never roll this thing out.
 
Michael Bluth said:
I'm thinking they're going to gather everyone's information for this supposed "waiting list" and then never roll this thing out.
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At first I thought this seems to good to be true, but then noticed that this is backed by Google Ventures and Andreesen Horowitz (and a few others). Appears legit...

The start-up brokerage has received $3 million in seed funding and is backed by Google Ventures, Andreessen Horowitz, Index Ventures, Rothenberg Ventures, Tim Draper and Howard Lindzon's Social Leverage, according to the company's website.
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https://www.robinhood.com/faq/
 
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Cool. I had not heard about this. Based on the people backing it, I could see it being legit.

I could see this being profitable in the long-run... Lure in a bunch of customers with no commissions then market other products to them. Simple enough idea.
 
As far as marketing other products and the ways they make their money, it seems all the same as every other platform. The difference seems to be lower costs.
 
I'm curious as to what research/active trading elements they will provide. They could become the dominant platform for the active trading market overnight.
 
I'm curious if this has any effect on high-frequency trading. In theory, it could help average investors but only on the cost front... Still not gonna be able to compete with the big banks on the computer speed front.
 
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