Robinhood CEO defends payment for order flow, says practice is ‘here to stay’ (www.cnbc.com)
from L4s@lemmy.world to technology@lemmy.world on 03 Dec 2023 02:00
https://lemmy.world/post/9067685

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.

#technology

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Imgonnatrythis@sh.itjust.works on 03 Dec 2023 02:30 next collapse

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.

min_fapper@iusearchlinux.fyi on 03 Dec 2023 02:53 next collapse

Because they don’t know better.

foggy@lemmy.world on 03 Dec 2023 03:08 collapse

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.

jmp242@sopuli.xyz on 03 Dec 2023 03:03 next collapse

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?

min_fapper@iusearchlinux.fyi on 03 Dec 2023 05:42 collapse

www.youtube.com/watch?v=bP74RBTE8kI

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something_random_tho@lemmy.world on 03 Dec 2023 13:56 collapse

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Kalkaline@leminal.space on 03 Dec 2023 03:04 collapse

Just because dicks and idiots are getting scammed doesn’t make it right.

mannycalavera@feddit.uk on 03 Dec 2023 03:13 next collapse

PFOF is banned in the U.K

Laughs in Britishness

Fades@lemmy.world on 03 Dec 2023 07:26 collapse

As it should be. It’s banned in many countries for good reason

Cheesus@lemmy.world on 03 Dec 2023 05:55 next collapse

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

bobs_monkey@lemm.ee on 03 Dec 2023 06:32 collapse

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.

Fades@lemmy.world on 03 Dec 2023 07:25 next collapse

That is fucking bullshit, these fucking thieves run the markets

NewPerspective@lemmy.world on 03 Dec 2023 08:50 collapse

Wait, Robinhood survived their GameStop bullshit?