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A comment on Launch HN: Double (YC W24) – Index Investing with 0% Expense Ratios. Parent comment

Re:Launch HN: Double (YC W24) – Index Investing with 0% Expe... by Anon1096 on Tuesday December 10, 2024 @12:18PM (#42378878)
There is nothing in that statement that actually shows negative effects of PFOF.

> creating an inherent misalignment between these platforms and their customers

is just speculative harm, and as to the other part about preventing risky trading - this is literally what Robinhood et al customers want!

Meanwhile PFOF actually does have proven benefits in that it reduces spread for retail investors.

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Re:Launch HN: Double (YC W24) – Index Investing with 0% Expe... by Ntrails on Wednesday December 11, 2024 @10:40AM (#42388847)
> Meanwhile PFOF actually does have proven benefits in that it reduces spread for retail investors.

To be fair, some of that is because its existence changes the pool of people trading on lit and thus increases spreads there. There are systemic effects that are a function of pfof that make it look better, and ofc there are a wide range of actors of varying quality...

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