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exactly - how do you trust an AI to give you the best deal, vs slipping in a preferred vendor? Think of Robinhood and how they gave users more expensive trades
by xivzgrev 1y ago
exactly - how do you trust an AI to give you the best deal, vs slipping in a preferred vendor?
Think of Robinhood and how they gave users more expensive trades because they were paid for routing flow.
Companies are likely salivating over the potential of AIs to "slip in" higher prices by reducing friction in the buying process.
- im3w1l 1y agoAll I've read indicates Robinhood was incredibly good for retail traders. Payment for order flow does not not harm the user, you get the same amount of shares at the same price, just from a different seller.
- positr0n 1y ago> Think of Robinhood and how they gave users more expensive trades because they were paid for routing flow. That's the opposite of reality. Most trades are cheaper routed to a PFOF market maker because they know it's just retail trades. Uncorrelated "dumb money" that isn't going to be steamrolling them with a $10m sale. Also that would be obviously illegal and the SEC would jump down their throat. Brokers must give clients best execution.