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A comment on Robinhood reports 43% revenue decline. Parent comment

Re:Robinhood reports 43% revenue decline by Fomite on Friday April 29, 2022 @04:28PM (#31210218)
They market themselves as helping and serving the little guy, because of their commission-free trades.

As with most things that are free, one needs to realize that if you're not the customer, you're the product. Robinhood makes its money on the interest in customer's accounts, margin lending, and selling trade data to high frequency traders.

Only one of those is "little guy" neutral - margin lending is extremely dangerous for inexperienced investors, and HFTs aren't the little guy.

[ Parent | on HN ]
Re:Robinhood reports 43% revenue decline by kasey_junk on Friday April 29, 2022 @05:21PM (#31210711)
Nitpick. They aren’t selling trade data to high frequency traders, they are selling the right to trade with you to high frequency traders. Payment for order flow is the term of art if you want to learn more.
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