A Robinhood rival is encouraging users to abandon the stock trading app in favor of their own – and is hiring Michael Bolton to seal the deal.
Public – a New York-based startup that wants to capitalize on Robinhood’s recent problems with regulators and customers – tweeted a video on Tuesday of the breakout ringer singing a version of his 1989 hit “How Am I Supposed to Live Without You ? “
The new track, “How Am I Supposed to Trade Without You?” follows a bitter end to the “Reddit Rally”, in which users accuse Robinhood of taking shares of companies like GameStop and AMC Entertainment with surprise commercial restrictions.
In the new letter, an impassive Bolton investigates allegations that Robinhood sells “order flow” to large hedge funds like Citadel Investments, whose financial interests are not aligned with those of small investors.
“I could hardly believe it, what I saw on Reddit today,” Bolton sings while a piano tinkles in the background. “I was hoping that I would understand directly from you. They told me ‘about’ the order flow, ‘So I researched it, now I know – I think I have to find someone new. “
“So tell me all about it – tell me who you sell my transactions to,” Bolton sings, perched in a recording studio amid stock images of burning roses, a broken glass of wine and a guy walking alone on the beach .
“Tell me how should I negotiate without you? My actions have been in your app for so long. “
The public, which currently has 1 million users versus Robinhood’s 13 million, allows customers to buy fractional shares and ETFs. On Wednesday, Public said it raised a new round of financing for $ 220 million from existing investors.
The company also said that it no longer engages in payments for order flow, and that it is now directing its trades directly to exchanges such as the New York Stock Exchange, while encouraging users to give tips on their trades.
“I think it’s time to move on,” sings Bolton, closing the field. “I’m going to transfer all my stuff and I’m leaving!”