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Back then that was certainly true. Today it's easy and free to do using ETFs that are free to trade under certain brokers. Since I'm a boring fuddie duddie, I j

Back then that was certainly true. Today it's easy and free to do using ETFs that are free to trade under certain brokers. Since I'm a boring fuddie duddie, I just rebalance my ETFs and index funds in Vanguard every so often at no cost, but I believe eTrade and some other platforms have a subset of "no commission" ETFs, Interactive Brokers has very low commissions, and if you like startups in the space, Robinhood is technically free (though order fill I hear isn't nearly as good as other major platforms, to be expected).

nodesocket 9y ago
Robinhood is good for quick smaller trades, but their order fill is horrible. Every time I am shocked at the prices my orders fill at. I'm fairly positive they are making money front-running or from kickbacks from exchanges.
- benmowa 9y ago
  After reading Flash Boys: A Wall Street Revolt, I think it would be silly of me to not believe everyone is doing some variation of front running.
- asddddd 9y ago
  They sell flow to KCG/Citadel/etc like most all (every?) retail broker.
  - icelancer 9y ago
    Pretty much. Think they route through Apex a lot as well. Interactive Brokers is the only way to go for an intermediate person who wants to speculate and have high-powered tools for a relatively low minimum ($10k I believe, $3k or so for younger people under 25?). They refuse payment on order flow, as does Fidelity, IIRC. Like I said I'm out of that game (minus small speculation on BTC for currency hedging purposes). I've found the love of index funds and low expense ratios.
- icelancer 9y ago
  If the desire is to fill index-type ETFs at the market price, yeah, Robinhood is probably not smart. Vanguard is simply better for that. I wonder how the fills are at limit stops? Slower? Don't know who they clear through. Robinhood seems like a great fit for the person who has maxed a Roth and wants a brokerage to hold on to ETFs across low-ER providers, like Charles Schwab and iShares ETFs + Vanguard ETFs as they accumulate capital. Beyond that I can't see using it for trading or anything. If I was slanging options or speculating long/short through retail brokers, I'd be doing it on Interactive Brokers and nowhere else. (And yes, I know Robinhood doesn't do short-side work.)

nodesocket 9y ago

Robinhood is good for quick smaller trades, but their order fill is horrible. Every time I am shocked at the prices my orders fill at. I'm fairly positive they are making money front-running or from kickbacks from exchanges.

benmowa 9y ago
After reading Flash Boys: A Wall Street Revolt, I think it would be silly of me to not believe everyone is doing some variation of front running.
asddddd 9y ago
They sell flow to KCG/Citadel/etc like most all (every?) retail broker.
- icelancer 9y ago
  Pretty much. Think they route through Apex a lot as well. Interactive Brokers is the only way to go for an intermediate person who wants to speculate and have high-powered tools for a relatively low minimum ($10k I believe, $3k or so for younger people under 25?). They refuse payment on order flow, as does Fidelity, IIRC. Like I said I'm out of that game (minus small speculation on BTC for currency hedging purposes). I've found the love of index funds and low expense ratios.
icelancer 9y ago
If the desire is to fill index-type ETFs at the market price, yeah, Robinhood is probably not smart. Vanguard is simply better for that. I wonder how the fills are at limit stops? Slower? Don't know who they clear through. Robinhood seems like a great fit for the person who has maxed a Roth and wants a brokerage to hold on to ETFs across low-ER providers, like Charles Schwab and iShares ETFs + Vanguard ETFs as they accumulate capital. Beyond that I can't see using it for trading or anything. If I was slanging options or speculating long/short through retail brokers, I'd be doing it on Interactive Brokers and nowhere else. (And yes, I know Robinhood doesn't do short-side work.)