Robinhood CEO defends payment for order flow, says practice is ‘here to stay’::That’s despite calls from notable consumer trading advocates and regulators for a ban on the practice.
Assume their client base is all dicks and idiots at this point so why not? I don’t understand why anyone trusts their money to these clowns.
Just because dicks and idiots are getting scammed doesn’t make it right.
Because they don’t know better.
It’s because in 2008 we decided that some financial institutions were “too big to fail,” so now every institution wants to have a fucking credit card attached to their business model to catch the wave of that “too big to fail” dollar.
I mean I don’t trust Robin Hood, but do they sell the securities for more money? Or is it just they try and get you to make more trades? I’m not even sure how a broker would do that beyond making the fees 0. I mean, maybe if they were managing your investments for you, but they’re a discount broker where you do self directed trades right?
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Wait, Robinhood survived their GameStop bullshit?
PFOF is banned in the U.K
Laughs in Britishness
As it should be. It’s banned in many countries for good reason
That is fucking bullshit, these fucking thieves run the markets
I mean what do you expect from a brokerage that charges nothing for trades? It’s not like they’re a giant brokerage who can make up no cost trades with financial advisory fees
PFOF accounts for a small chunk of Robinhood’s revenues today, Tenev said, while much of its income today comes from net interest income which is generated from cash in user balances.
“If you look at equities, PFOF in particular, it’s about 5%. of our revenue, so a much smaller component of the overall pie. And we’ve diversified the business quite a bit,” including other areas like securities lending, margin, and subscriptions.
Not saying I agree with the practice, but as long as the guy isn’t lying, there it is.
