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A comment on I have made the decision to disband Hindenburg Research. Parent comment

Re:I have made the decision to disband Hindenburg Research by kortilla on Thursday January 16, 2025 @01:20PM (#42728858)
Nope, this is one of the counterintuitive things about people paying RH for order flow. Market makers can offer tighter spreads when they know it’s a pool of dumb money.
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Re:I have made the decision to disband Hindenburg Research by graemep on Thursday January 16, 2025 @01:39PM (#42729127)
tighter spreads are not zero spreads
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Re:I have made the decision to disband Hindenburg Research by kortilla on Saturday January 18, 2025 @03:47PM (#42751297)
What’s your point? The spreads are tighter than you would get on the open market.

NBBO requires that if there is something better that Robinhood gives it to you.

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Re:I have made the decision to disband Hindenburg Research by eru on Saturday January 18, 2025 @05:33PM (#42751959)
I think the point is that if you trade, you pay the spreads. Market makers can help you pay narrower spreads, but you still pay them.

If you just hold your index fund, you don't pay these recurring spreads.

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