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It is not a win. In a recent study, Robinhood with Citadel has the worst price improvement (execution quality) of any brokerage on the market. I’ve personally o
by lldb 2y ago
It is not a win. In a recent study, Robinhood with Citadel has the worst price improvement (execution quality) of any brokerage on the market. I’ve personally observed this - Robinhood might “improve” by 1/10 of a cent from NBBO while Fidelity is frequently closer to the mid.
- loeg 2y agoHow is that not a win? Robinhood customers still got better execution than NBBO. If you don't like Robinhood getting a tiny kickback here, you're free to go to another brokerage.
- wrsh07 2y agoThis is just noting that different brokers give different performance That doesn't really have anything to do with pfof (TD Ameritrade gives better execution and receives pfof) https://news.ycombinator.com/item?id=42378516 https://news.ycombinator.com/item?id=42378516
- loeg 2y agoPresumably a market maker would pay (PFOF) slightly more to deliver slightly worse execution (keeping the spread).