Re:Robinhood Making Millions Selling Out Their Millennial Cu...
by noobermin on Monday September 10, 2018 @11:57PM
(#17957079)
As long as it's 1 cent no single individual will care. As long as it's less than what a person would pay per trade elsewhere then both sides sort of win I guess...
The problem I suppose is the poor chaps don't know this is what is happening.
Re:Robinhood Making Millions Selling Out Their Millennial Cu...
by pochamago on Tuesday September 11, 2018 @02:39AM
(#17957605)
This doesn't sound like it's fucking me, though. I'm still getting the stock for exactly what I asked, correct? I mean, hasn't Robin Hood always been upfront that they make money on the discrepancy between what buyers are willing to pay versus what sellers are willing to take? It's still a free service to me.
Re:Robinhood Making Millions Selling Out Their Millennial Cu...
by wodenokoto on Tuesday September 11, 2018 @12:19PM
(#17961100)
> hasn't Robin Hood always been upfront that they make money on the discrepancy between what buyers are willing to pay versus what sellers are willing to take?
No, they are quite clear on how they make money and that is not it. They, officially, make money on interests and a subscription service [1].
[1] https://support.robinhood.com/hc/en-us/articles/360001226106...
This is very similar to "front running" [1], but because a) this happens privately and in small quantities, and b) it is not necessarily privileged information, it's considered legal by the SEC. But it is highly questionable for sure.
"Flash Boys", by Michael Lewis [2] is a great read, and goes into detail on the world of high frequency traders, and how they operate.
[1] https://en.wikipedia.org/wiki/Front_running
[2] https://www.amazon.com/Flash-Boys-Wall-Street-Revolt/dp/0393...