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Re:Robinhood S-1 IPO by mister_pea on Thursday July 01, 2021 @07:20PM (#27706119)
Robinhood sells to/executes orders through high frequency trading firms like Citadel and (I think) Two Sigma. Because Robinhood isn't connected directly to, say, the NYSE, these HFT firms essentially buy the security and sell it to you for a slightly higher price. TBF, other companies do this too; like, TD Ameritrade, Schwab and E*Trade.
Re:Robinhood S-1 IPO by carnitine on Thursday July 01, 2021 @08:02PM (#27706419)
No, HFT firms are obliged to meet the NBBO. They improve prices for retail investors because retail investors are generally safer to transact with.