4 ms·
Not 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
by bobcostas55 9y ago
Not 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.