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A comment on FINRA Orders Record Financial Penalties Against Robinhood. Parent comment

Re:FINRA Orders Record Financial Penalties Against Robinhood by stinky on Monday July 05, 2021 @02:05PM (#27740402)
Afaik they don’t charge any brokerage fees. From what I gather, they use PFOF (payment for order flow) to get revenue, instead. This essentially means that they sell the information on the just placed customer orders to 3rd parties, so that those 3rd parties can front-run the trades and skim the profit off of RH customers.
[ Parent | on HN ]
Re:FINRA Orders Record Financial Penalties Against Robinhood by bryan_w on Monday July 05, 2021 @03:10PM (#27740986)
I can't believe you've managed to fit so many wrong things into a short post. Do you often make comments about things you have no clue about with such confidence?

At least this will be a good litmus test for community moderation.

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Re:FINRA Orders Record Financial Penalties Against Robinhood by ac29 on Monday July 05, 2021 @02:47PM (#27740772)
Front-running is illegal and is not why firms pay for order flow.
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Re:FINRA Orders Record Financial Penalties Against Robinhood by fighterpilot on Tuesday July 06, 2021 @07:04AM (#27746696)
That's not how it works. With PFOF, the market maker (e.g. Citadel) takes the other side of the trade with Robinhood's retail client, instead of that retail order being sent to the actual market.
[ Parent | on HN ]