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You re right. they do the trades for robinhood users. What do you think they do between the time they receive the order and execute it? don't forget that the de
by finikytou 6y ago
You re right. they do the trades for robinhood users. What do you think they do between the time they receive the order and execute it? don't forget that the default trade on robinhood has no limit to it. you buying market value. now try doing that on millions of users just like madoff did playing with the cents.
- bidirectional 6y agoThey make their cents (or less) on the bid-ask spread, as do all market makers. They do this while also improving the execution of the trade for the end user. Some of that spread goes back to Robin Hood via PFOF. Citadel allows people to buy stocks for less than they would normally, this is an irrefutable fact. What do you think they're doing in that time? Please be specific because I have no idea what part of this mutually beneficial, standard operating procedure is meant to be a criminal conspiracy. The people losing out are institutional investors who cannot access the same execution quality as a retail investor, because they trade in greater volume and are more likely to be behind a market move.