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When you say "It’s awful at order execution, so you get worst prices on things." What does "worst price" represent? How do you get a "Worst price" than anywhere
by starguide77 5y ago
When you say "It’s awful at order execution, so you get worst prices on things." What does "worst price" represent? How do you get a "Worst price" than anywhere else?
- dmoy 5y agoIf you're willing to read a lot, this is a decent overview: https://www.stockbrokers.com/guides/order-execution https://www.stockbrokers.com/guides/order-execution Also here's the disclosure from IBKR, which is probably the polar opposite from robin hood in terms of favorable order execution https://gdcdyn.interactivebrokers.com/Universal/servlet/Registration_v2.formSampleView?formdb=3074 https://gdcdyn.interactivebrokers.com/Universal/servlet/Regi... I know the first link said fidelity is better, but that's fidelity vs ibkr-lite, not ibkr-pro.
- mister_pea 5y agoRobinhood sells to/executes orders through high frequency trading firms like Citadel and (I think) Two Sigma. Because Robinhood isn't connected directly to, say, the NYSE, these HFT firms essentially buy the security and sell it to you for a slightly higher price. TBF, other companies do this too; like, TD Ameritrade, Schwab and E*Trade.
- carnitine 5y agoNo, HFT firms are obliged to meet the NBBO. They improve prices for retail investors because retail investors are generally safer to transact with.