Where are they going to go? Even with their problems, the RH app is pretty good - especially for the first time trader with a few hundred dollars. My primary brokers app and website works, but is very cumbersome. The closest thing out there might be ToS from when I used to use TDA.
This is honestly for the best, and is a feature I'm surprised Robinhood has not implemented.
Source: https://www.bloomberg.com/news/articles/2020-05-08/oil-crash...
Online brokerages are from the first dotcom boom. They are over 20 years old. There are many well establish reliable brokers.
And many of them have cut their transaction fees to $0.
All Robinhood seems to have done is layer a fun UI over a weak trading back end and pretend to be empowering their users.
UI/UX matters. RH's core demographic is also more likely to be app first. In some ways this is a standard HN response that completely dismisses the UI/UX.
But maybe a better way to put it would be "they're going to lose the trust of much of their base", which might be fine short-term but long-term isn't great for them.
I wouldn't move off of Robinhood for this issue, but there are a number of other reasons that I would advise others from using the platform, including poor order fills[1], constant outages, and overall lack of features.