5 ms·

> This is not at all how NBBO works Open to corrections > they still dont have any obligation to improve your price beyond NBBO But those that do price impro

> This is not at all how NBBO works Open to corrections > they still dont have any obligation to improve your price beyond NBBO But those that do price improvement use it as a marketing differentiator: https://www.fidelity.com/learning-center/tools-demos/trading-tools/price-improvement https://www.fidelity.com/learning-center/tools-demos/trading... https://investor.vanguard.com/investing/online-trading/orders https://investor.vanguard.com/investing/online-trading/order... https://www.schwab.com/execution-quality https://www.schwab.com/execution-quality https://www.tdameritrade.com/tools-and-platforms/order-execution.page https://www.tdameritrade.com/tools-and-platforms/order-execu... https://www1.interactivebrokers.com/en/index.php?f=47202#best-execution https://www1.interactivebrokers.com/en/index.php?f=47202#bes...

kasey_junk 6y ago
Schwab, Fidelity, TD Ameritrade & IB all engage in PFOF. They all have free offerings. Here is what robinhood advertises for their price improvement https://robinhood.com/us/en/about-us/our-execution-quality/ https://robinhood.com/us/en/about-us/our-execution-quality/ All NBBO improvement requires is that if you send an order through the book you’ll get the best price on NBBO. Even when Robinhood got fined it wasn’t for that, it was for promising better than their competitors and then putting it in writing that they were happy being worse than their competitors.
pgwhalen 6y ago
> Open to corrections Under the "Robinhood" header of this Matt Levine column is a pretty good explanation of payment for order flow: 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...