Search results

Amazing how many incredibly wealthy pro-high tax SJW’s there are. Political affiliation is like a vanity plate.

Wall Street Journal September 2, 2020 Robinhood Markets Inc. faces a civil fraud investigation over its early failure to fully disclose its practice of selling clients’ orders to high-speed trading firms, people familiar with the matter said. The investigation is at an advanced stage and the...

Mic drop. This is where it’s too bad that Knight isn’t around, because sophisticated stock investors were their bread and butter. Where do the automated trading systems (that aren’t paying for order flow) go? IB Pro?

I think that you should be able to figure that out for yourself. Depends upon how frequently you trade and how long you hang onto positions. Knowing what I know now - there’s no way that I personally would day trade stocks with a discount broker that I know sells the order flow. If I were...

The Democrats and Republicans both are bought and paid for by Wall Street. Half of Obama’s staff was Wall Street - and the same will hold true for Biden, starting with Jamie Diamond at Treasury.

I truly don’t know. I’m all about futures and OTC Swaps. My stock trading adventures have been mostly 401K. I played around with some equity pairs in the mid-2000’s using Lime. From what I now know, I wouldn’t day trade stocks with a discount broker, that’s for sure.

The point being, that CALPERS and Black Rock and Citadel and the Stanford Endowment Fund aren’t using E*Trade or Bob’s Zero Commissions Trading App for a reason.

Apparently when you take in several hundred million in PFOF fees over a six month period it's barely an inconvenience. FINRA fined Robinhood in December 2019 for “best execution violations related to its customers’ equity orders and related supervisory failures”. Robinhood paid the $1.25...

Thanks for cutting to the chase. Point being, market makers are paying billions of dollars per year for order flow - and they pay that out not as a professional courtesy but because they can make retail discount customers pay up in slippage. PFOF has essentially replaced commissions and...

Prime brokerage on Wall Street has been growing at 8 percent per year. Them and us are two different species of people entirely.

My understanding is that IB Pro customers still pay to trade and their orders will routed to the market where they will get the best execution, instead of being sold. IB Discount customers have their order flow sold to MM's.

If you're happy, then fine. Ignorance is bliss. Here are the Company 606 reports for PFOF totals for 2020 Q1 and Q2. Equities and Options. TD Ameritrade: Equity Q1: $72,782,936 Equity Q2: $144,219,349 Options Q1: $129,597,189 Options Q2: $179,991,996 Total Q1: $202,380,125 Q2...

Apparently all deep discount or free brokers sell order flow. That's how they make money. They're not making money from fees or commissions so it has to come from somewhere. And apparently it's lucrative.

I'm a futures guy, not a stocks guy so this is out of my wheelhouse. The last time I was a party to something close to a prime brokerage account was in the early '00's at a HF. You would have to be very high net worth to be an individual with a prime brokerage account. Prime brokerages...

Yes, if you're on Robinhood you're getting front-run: https://www.institutionalinvestor.com/article/b1m2p1cv68bx56/Twitter-Freaked-Out-Over-Robinhood-Selling-Its-Trade-Flow-But-the-App-and-Others-Have-Been-Doing-It-for-Years

When you're taking in several hundred million per year selling order flow - well, paying small fines is no big deal. FINRA fined Robinhood in December 2019 for “best execution violations related to its customers’ equity orders and related supervisory failures”. Robinhood paid the $1.25...

Again, Robinhood has taken in $271M in fees from payment for order flow in Q1-20 and Q2-20. Orders are not being routed for the sake of the investor's best interest. Orders are being routed for the gain and financial benefit of the Market Makers who are paying for the order flow. If the...

Robinhood has taken in $271M in fees from payment for order flow in Q1-20 and Q2-20. This was not an altruistic endeavor. Orders are not being routed for the sake of the investor's best interest. Orders are being routed for the gain and financial benefit of the Market Makers who are paying...

The catch is they make profits by selling all the order flow to Hedge Funds and Wall Street - which means that Robinhood customers get really lousy fills. And it adds up if you trade with any frequency. Nothing is free. Same for all deep discount or free stock brokers. And that's why Primer...

Well, there are two angry mobs now. My money's on the one with a shit ton of capital and political leverage that apparently is quite willing to take it's server farm elsewhere. Apparently white guilt only goes so far.