Robinhood: We are letting go approximately 9% of our full-time employees

Re:Robinhood: We are letting go approximately 9% of our full... by nowherebeen on Tuesday April 26, 2022 @05:25PM (#31173388)

There aren’t offering anything new and even frontrun their customers. And with the GameStop fiasco, I think a lot of people realizes it was a bad business model. I don’t think they will be able to recover. It will drop even more if a recession ever hits.

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Re:Robinhood: We are letting go approximately 9% of our full... by nly on Tuesday April 26, 2022 @08:07PM (#31174718)

They don't front-run orders. They still give best execution but they receive a small fee from market makers for sending orders their way.

If both market maker A and market maker B offer the same price but B is going to pay them slightly more than A for your order, then they can legally route your order to B.

Many brokers do this now.

Front running is different entirely. For example, if you were about to buy a load of stock, front running would be Robinhood buying in before you, waiting for your order to clear the price level, and then selling a few ticks higher.

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Re:Robinhood: We are letting go approximately 9% of our full... by NovemberWhiskey on Wednesday April 27, 2022 @12:43AM (#31176397)

>They don't front-run orders. They still give best execution but they receive a small fee from market makers for sending orders their way.

I really have most serious doubts about the idea that you can simultaneously get paid for order flow and deliver on your best execution obligations - the payment for order flow literally comes out of missed price improvement opportunities for the customer. FINRA seems to feel the same way and fired a warning shot over the bows last year: https://www.finra.org/rules-guidance/notices/21-23

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Re:Robinhood: We are letting go approximately 9% of our full... by qeternity on Tuesday April 26, 2022 @06:36PM (#31174033)

> and even frontrun their customers.

Oh ffs no they don’t.

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Re:Robinhood: We are letting go approximately 9% of our full... by metadat on Tuesday April 26, 2022 @07:18PM (#31174370)

I thought RobinHood helped Citadel front run the orders?

See https://www.washingtonpost.com/business/2021/01/29/robinhood...

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Re:Robinhood: We are letting go approximately 9% of our full... by ac29 on Tuesday April 26, 2022 @10:13PM (#31175491)

Payment for order flow is not front running (which is illegal).

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Re:Robinhood: We are letting go approximately 9% of our full... by mushbino on Wednesday April 27, 2022 @03:32AM (#31177302)

What is the order flow used for?

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Re:Robinhood: We are letting go approximately 9% of our full... by colinmhayes on Thursday April 28, 2022 @05:11PM (#31198272)

Citadel believes that they are less likely to lose money when they fill orders from retail investors. They're just paying for access to rubes, basically a finders fee.

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Re:Robinhood: We are letting go approximately 9% of our full... by lupire on Tuesday April 26, 2022 @07:28PM (#31174444)

The front running is instead of a transaction fee. Customers have to pay for the service somehow.

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