A Robinhood rival is encouraging users to abandon the stock trading app in favor of their own, and is taking advantage of Michael Bolton to seal the deal.
Public, a New York-based startup that wants to capitalize on Robinhood’s recent problems with regulators and clients, released a video on Tuesday of the breakup dancer singing a version of his 1989 hit “How II Supposed to Live Without You?”
The new topic, “How am I supposed to trade without you?” follows a bitter end to the “Reddit Rally,” in which users accused Robinhood of closing shares of companies like GameStop and AMC Entertainment with surprise trade restrictions.
In the new letters, a straight-faced Bolton delves into allegations that Robinhood sells “order flow” to large hedge funds such as Citadel Investments, whose financial interests are not aligned with those of popular investors.
“I could hardly believe it, what I saw on Reddit today,” Bolton snarls as a piano jingles in the background. “I was hoping he would get it straight from you. I was told the order flow was “good,” “So I searched Google, now I know, I think I need to find someone new.”
“So tell me everything – tell me who you sell my trades to,” says Bolton, set in a recording studio amid images of flaming roses, a shattered glass of wine and a boy walking alone on the beach .
“Tell me how should I negotiate without you? My actions have been in your app for a long time. “
The public, which currently claims 1 million users compared to Robinhood’s 13 million, allows customers to buy fractional shares of stock and ETFs. On Wednesday, Public said it had raised a new round of $ 220 million in funding from existing investors.
The company also said it no longer pays for order flow and now routes its transactions directly to stock exchanges such as the New York Stock Exchange, while encouraging users to lean into its operations.
“I think it’s time I have to move on,” Bolton sings, closing the playing field. “I’m going to transfer all my stuff and I’ll be done!”