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Yeah that was a bit orthogonal but was going into the point that Robinhood is more than just payment order flow selling. Robinhood payment order flow selling (
by drawkbox 6y ago
Yeah that was a bit orthogonal but was going into the point that Robinhood is more than just payment order flow selling.
Robinhood payment order flow selling (PFOF) is just the "limited hangout" they want people to focus on and how they make most of their money. I wouldn't doubt they even pay people and have false opposition to focus on the PFOF aspect over other things they are doing.
Robinhood use PFOF more effectively than other retail brokerages with the larger system they are in. The type of investor can more easily be manipulated as well as the volume is key.
However, PFOF is merely a node in the Robinhood system of influence. Ultimately Robinhood itself is a node in a orchestrated investment system that is greater than Robinhood. Anyone in investment or even knows a bit about geopolitics knows that it is greater than simply an app that sells PFOF. Robinhood would love people to just focus on PFOF because "everyone is doing that", but they aren't going further but Robinhood is.