4 ms·

They got hit with a $65M SEC settlement for this last December: https://en.wikipedia.org/wiki/Robinhood_(company)#SEC_Probe_on_Selling_Clients'_Orders https://e

by sxp 6y ago

They got hit with a $65M SEC settlement for this last December: https://en.wikipedia.org/wiki/Robinhood_(company)#SEC_Probe_on_Selling_Clients'_Orders https://en.wikipedia.org/wiki/Robinhood_(company)#SEC_Probe_... This is a clear case of "if you're not paying for the product, you are the product".

partiallypro 6y ago
Yeah, but now almost every brokerage is 0 commission unless you are trading large blocks.
- jedberg 6y ago
  And chances are if you're trading large blocks you have a lot of money, making you a premium customer, meaning you get free trades anyway!
- ummonk 6y ago
  Yeah but not all of them are selling order flow. E.g. Vanguard and Fidelity don't sell order flow and haven't blocked purchases of these stocks. They make their money the same way banks do.
  - silicon2401 6y ago
    Can one buy stocks through Vanguard?
    - jrickert 6y ago
      Yes, Vanguard supports individual stocks with no trading fees.
xwdv 6y ago
I’ll gladly be the product for 0 commission trades.
- simo7 6y ago
  You're not the product, it's a wrong analogy. You simply pay hidden fees embedded in the slightly higher price you pay.
- joshspankit 6y ago
  Will you also have your shares sold out from under you for those same 0 commission trades?
  - jhanschoo 6y ago
    If you're referring to what happened to margin accounts at RH, what does that have to do with 0 commission?
Triv888 6y ago
Everyone should contact the SEC to make sure that they don't let them get it away with it this time (even if the SEC did the right thing in December).
bko 6y ago
Please stop spreading this meme. If you're actually curious about the role HFT plays in price enhancement for retail trading, check out Matt Levine under section "Robinhood". https://www.bloomberg.com/opinion/articles/2018-10-16/carl-icahn-wants-to-fight-dell-again https://www.bloomberg.com/opinion/articles/2018-10-16/carl-i...
- Khelavaster 6y ago
  We're suggesting ulterior motive in Robinhood shutting down GME trading. GME has caused Citadel tremendous risks/losses. Citadel loaned $2.75 billion to Melvin before Melvin liquidated over GME. Maybe Citadel's updated their position but I think it's still shorter-term bearish.
  - bko 6y ago
    Nothing to do w/ unwanted attention from politicians and regulators?
- belltaco 6y ago
  What does HFT have to do with buying up retail trade streams before they are put on the market? Surely HFT can exist without that. And the OP is right, the trader is 100% the product in this scenario and the trade stream buyers are the real customers.

by sxp 6y ago

partiallypro 6y ago

Yeah, but now almost every brokerage is 0 commission unless you are trading large blocks.

jedberg 6y ago
And chances are if you're trading large blocks you have a lot of money, making you a premium customer, meaning you get free trades anyway!
ummonk 6y ago
Yeah but not all of them are selling order flow. E.g. Vanguard and Fidelity don't sell order flow and haven't blocked purchases of these stocks. They make their money the same way banks do.
- silicon2401 6y ago
  Can one buy stocks through Vanguard?
  - jrickert 6y ago
    Yes, Vanguard supports individual stocks with no trading fees.

xwdv 6y ago

I’ll gladly be the product for 0 commission trades.

simo7 6y ago
You're not the product, it's a wrong analogy. You simply pay hidden fees embedded in the slightly higher price you pay.
joshspankit 6y ago
Will you also have your shares sold out from under you for those same 0 commission trades?
- jhanschoo 6y ago
  If you're referring to what happened to margin accounts at RH, what does that have to do with 0 commission?

Triv888 6y ago

Everyone should contact the SEC to make sure that they don't let them get it away with it this time (even if the SEC did the right thing in December).

bko 6y ago

Please stop spreading this meme. If you're actually curious about the role HFT plays in price enhancement for retail trading, check out Matt Levine under section "Robinhood". https://www.bloomberg.com/opinion/articles/2018-10-16/carl-icahn-wants-to-fight-dell-again https://www.bloomberg.com/opinion/articles/2018-10-16/carl-i...

Khelavaster 6y ago
We're suggesting ulterior motive in Robinhood shutting down GME trading. GME has caused Citadel tremendous risks/losses. Citadel loaned $2.75 billion to Melvin before Melvin liquidated over GME. Maybe Citadel's updated their position but I think it's still shorter-term bearish.
- bko 6y ago
  Nothing to do w/ unwanted attention from politicians and regulators?
belltaco 6y ago
What does HFT have to do with buying up retail trade streams before they are put on the market? Surely HFT can exist without that. And the OP is right, the trader is 100% the product in this scenario and the trade stream buyers are the real customers.