From what I learned from a guy who did HFT back in 2007 HFT skimming money from their trades, thats why they make more money when markets are volatile.

In some ways it's just a more sophisticated version of the traders who in the nineties made their money from each trade they made happen whether it went good or bad.

The more customers they go to investe, re-invest etc the more money they made.

Don't think thats a big secret.

If that happened because HFT market markets decided not to use the TSX anymore and instead haunt exchanges that were amenable to HFT, that's evidence that HFT was helping individual investors.

Sure but that is not really the point is it?

I'm simplifying a simplification, and I personally would be among the first to point out that this is still just a one-point sample of a horrifically multidimensional space. My point is not to specifically claim that HFT is good, a matter that I still have no personal opinion on, but to point out the question begging. If HFT is shown in fact to be a net gain for consumers, then you should not blithely carry on with the presupposition that it is bad.

*"...If that happened because HFT market markets decided not to use the TSX anymore and instead haunt exchanges that were amenable to HFT, that's evidence that HFT was helping individual investors..."

Which claims that because people move to places that are not regulated/taxed it's a proof that HFT was helping individual investors.

That was in return in the context of me asking whether the reason why the Canadian market lost out was because it did so alone.

In other words. If ALL markets included taxation would the same drop happen? Or in even other words. If something can't handle being taxed is that an argument for not taxing it? Wouldn't it just be evened out.

I am not assuming HFT is bad or good. I am actually trying to figure out what exactly it's good for.

I understand how it's good for those who trade on the market, what I have not yet seen is any examples of how that transcends to society as a whole. And until someone can give me obvious examples of that I don't believe it's irrational for me to be sceptic.

Most Canadian stocks are not traded on US exchanges. So no.

As for "skimming", I'll repeat my question: can you explain the specific mechanics (i.e., what orders are placed when)? Note: if you believe FIX/OUCH has a "SKIM" command, can you link to it?