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A comment on Lessons learned building an ML trading system. Parent comment

Re:Lessons learned building an ML trading system by smeeth on Wednesday November 27, 2019 @09:18PM (#21654125)
I think, though I'm not sure, that RH makes their money by investing in treasury bills with the cash balances of people's portfolios. You're (most likely) not getting secretly screwed.
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Re:Lessons learned building an ML trading system by elamje on Wednesday November 27, 2019 @10:44PM (#21654436)
Contrary to popular belief robinhood makes a good bit of money from selling order data, more than most brokerages. This is due to the fact that most robinhood users are inexperienced, and thus, their trades are less likely to indicate big movements of institutional money. I.e. HFTs pay more for data that is less risky.

Edit: Fun fact, the founders of Robinhood worked at an HFT before starting robinhood, which used to be shown on their LinkedIn until several years ago. Bad optics I suppose.

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Re:Lessons learned building an ML trading system by kmangutov on Wednesday November 27, 2019 @10:36PM (#21654411)
Robinhood sells order flow https://www.cnbc.com/2019/04/18/a-controversial-part-of-robi...
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Re:Lessons learned building an ML trading system by anthony_barker on Thursday November 28, 2019 @08:25AM (#21657108)
Pretty much everyone sells part or all of their flow to Citadel or Citi.
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Re:Lessons learned building an ML trading system by imeron on Thursday November 28, 2019 @05:10AM (#21656007)
A great article on the subject: https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...
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Re:Lessons learned building an ML trading system by webninja on Thursday November 28, 2019 @11:30AM (#21658482)
Why invest in treasury bills at 1.8% yield when you can invest in margin lending at 5%?
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