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E*Trade and Ameritrade followed suit: https://techcrunch.com/2019/10/02/robinhood-e-trade-schwab-ameritrade/ https://techcrunch.com/2019/10/02/robinhood-e-trad

• tmaly 7y ago
  E*Trade got a bailout from Citadel back during the mortgage crisis in exchange for selling order flow.
  • mortehu 7y ago
    Most retail brokerages do this, and the information is regularly made public by law. https://www.schwab.com/public/schwab/nn/legal_compliance/important_notices/order_routing.html https://www.schwab.com/public/schwab/nn/legal_compliance/imp... shows that Schwab sends less than 1% of orders to exchanges.
    • perl4ever 7y ago
      People take offense at the idea someone is profiting off their stupidity, even if it's objectively making them better off because they get a kickback.