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You do realize you pay fees it’s just baked into the price? It’s pretty impressive how they’ve worked it out.
by chrisabrams 9y ago
You do realize you pay fees it’s just baked into the price? It’s pretty impressive how they’ve worked it out.
- lawrenceyan 9y agoThat's only true in the most technical of senses. Yes, there is a spread, but other brokerages take a spread AND additionally charge you another fee on top of that which is often an outrageous $5-10.
- jonknee 9y agoThat outrageous $5-10 probably helps the average person make money in the long run by not overtrading.
- nerfhammer 9y agodepends, how big is the spread?
- lawrenceyan 9y agoThe spread is generally on the order of a cent.
- Blackthorn 9y agoThe same as literally any other brokerage.
- bobcostas55 9y agoNot really, just because they're selling order flow doesn't necessarily mean the customer gets a worse deal. Robinhood still has to follow reg nms, they have to fill you at the NBBO.
- nicholas73 9y agoBut is their NBBO worse than other firms (worse routing options)?
- Blackthorn 9y agoThat's literally a contradiction. Look up what NBBO actually means.
- wocram 9y agoIt's actually more complicated, nbbo governs quotes but there are a few other things that affect your actual trade price such as exchange fees and price improvement. For example, every exchange can have the same quote, but a different liquidity fee.