70% of their revenue is from order flow to HFT operating. They will basically front load your order flow before your RobinHood order is complete. Feel better know?
Robinhood’s entire business is built on selling its customers’ orders to trading titans like Citadel Securities. At Schwab, so-called PFOF or “payment for order flow” only accounts for 3% of revenues. ETrade, 17%.
This should be illegal but the daft Congress are too stupid to now!
Instead of taking fees on the front end in the form of commissions, Tenev and Bhatt would make money behind the scenes, selling their trades to so-called market makers—large, sophisticated quantitative-trading firms like Citadel Securities, Two Sigma Securities, Susquehanna International Group and Virtu Financial. The big firms would feed Robinhood customer orders into their algorithms and seek to profit executing the trades by shaving small fractions off bid and offer prices.
This article reveals all
Free books https://quantlabs.net/
or learn algo trading https://quantlabs.net/dvd
Worried about your future with retirement, get this latest USB product
Jump on this Quant Analytics service https://quantlabs.net/quantanalytics/NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!