HFT is great for anyone not scalping for ticks.
Banks, institutions, hedge funds, HFT do not make money from retail players. They don't care about retail players. Why? Retail players are insignificant in that they don't have any worthwhile money. When i traded on the floor, traders would say that 'paper' was coming in. They meant institutions were putting in orders to buy/sell. No one ever discussed one lot retail trading or any retail trading for that matter!!!
Mate, just look on the DOM on the ES or on the bond futures or on forex...do you really think all those thousands of contracts worth billions are from retail investors? Most retail 'players' barely have $10k in their trading accounts!
And no, many institutions lose money. They don't all make money. Plenty of hedge funds go bust or close up shop due to losses every year.
To put it simple, institutions make money from each other. If a hedge fund announces they made $2 billion this year, it obviously wasn't from screwing retail traders.
Basic logic, my man!
Nobody cares about retail? Is that why every market maker is trying to purchase retail order flow? Is that why every brokerage is trying to sell order flow to the highest bidder? Do you check the 606 report from your broker? Is that why every HFT is trying to sniff out orders with high alpha (ie retail). Retail in the aggregate is a huge fucking chunk of the market. Retail is the prey that feeds the wolves. The whole goddamn ecosystem is dependent on retail.

Exactly. Casinos can't function without customers. Big whales and small sardines all get eaten in the end.Someone else gets it, finally
IF Retail world wide where banned from trading, the big boys would just pass the money around between themselves, they'd all over all break ever trading wise, but lose huge as they have huge expenses, building, staff, some might make some $$'s, some might loss some ofcourse.
Mate, just look on the DOM on the ES or on the bond futures or on forex...do you really think all those thousands of contracts worth billions are from retail investors? Most retail 'players' barely have $10k in their trading accounts!
And no, many institutions lose money. They don't all make money. Plenty of hedge funds go bust or close up shop due to losses every year.
To put it simple, institutions make money from each other. If a hedge fund announces they made $2 billion this year, it obviously wasn't from screwing retail traders.
Basic logic, my man!
CALPERS gets its money from retail, invests in a retail fashion and is as unsophisticated as retail. Retail IN THE AGGREGATE is what feeds the market.But, but, but... Calpers is an institution!!! Calpers farms its money to different fund managers....it doesn't open a some retail Scottrade account up and deposit $100 billion and start buying stocks....you been drinking, Guile?