Nicholas Pardini
Contrarian, macro, hedge fund manager, emerging markets

Short E-Trade Due To Creative Destruction From Robinhood App

Technology has continued to be a disruptive force in the financial services industry. In the late 1990's online brokerage platforms built by companies such as E-Trade (NASDAQ:ETFC), TD Ameritrade, and Scottrade reduced the costs of trading for retail investors to a fraction of previous levels. They also caused the extinction of the stockbroker, and took down many full service stock brokerages with it. However, with the innovations of tech upstart Robinhood, Inc., online brokerages such as E-Trade may become dinosaurs themselves.

Robinhood, Inc. is displacing online brokerages by offering 100% free trades for cash stock and ETF trades. In fact the company has found a way to turn a profit, and will be charging commissions for margin-based trades,...

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