After I deposited all my money in robinhood to start day trading options, I was told that robinhood execution speed might not be good enough for successful day trading. My plan was to profit off the relatively big volatile swings in the current market, but I’m concerned that robinhood won’t be able to open and close large positions (50-100 options) fast enough to be able to make decent gains. I am honestly worried I’ll miss out on the current volatility and don’t want to wait to transfer my money to another broker. Do you think it’s worth the wait?
From what I have read, the Robinhood app has a lot of glitches because it's a relatively new broker. If you're going to trade, you need a brokerage platform designed for trading that offers:
Continuous access to the platform
Easy and fast order placement
Smart Routing directly to the ECN with the best price
A well known Robinhood issue is that they receive payment for order flow for directing the order to specific exchanges. Per Investopedia:
In payment for order flow scenario, a broker is receiving fees from a third party, at times without a client's knowledge. This naturally invites conflicts of interest and subsequent criticism of this practice. Today, most brokers offer clear policies surrounding this practice.
This is a major benefit for smaller brokerage firms, which can't handle thousands of orders. In effect, this allows them to send off their orders to another firm to be bundled with other orders to be executed. This helps brokerage firms keep their costs low. The market maker or exchange benefits from the additional share volume it handles, so it compensates brokerage firms for directing traffic.
IMO, if you're going to be trading serious size - and 50 to 100 options is that - you might be better served on a trading platform that provides speed, quick execution and has been around long enough to have worked out the kinks.
For your purposes, I think you'd be better off with a commissioned broker like TDA or Charles Schwab. This is all anecdotal evidence, but from my experience you may end up losing hundreds to thousands of dollars in the course of time through slippage due to Robinhood's execution speed and front-running.
You'd be better off paying the tiny commissions on your trades in this case.
This is of course if you're trading options (which your tags seem to suggest you are). If you're just concerned with stocks, then both of the brokers I listed are commission free now so it's a no-brainer (my opinion).