QUOTE(apathen @ Sep 17 2018, 05:49 PM)
thank you for the pointers.
But for ikan bilis trader like me i doubt would be affected much by front running (when my order to buy and sell stock execute at the price i ask or bid) except sacrify privacy if they share their API. Just like we use google for free but they use our activities to show us advertisement. Just be mindful that if privacy is a concern then can use other paid brokers.
The choice is yours. No debate on this. I post this solely for educational purposes, so that people can make an informed decision.
QUOTE
Turns out, Robinhood doesn't perform all their customers' trades on their own platform, but instead, they sell the trading orders to 5 high-frequency trading companies; they are Apex Clearing Corporation, Citadel Securities, Two Sigma Securities, Wolverine Securities, and Virtu Financial. From there, they will choose which trading platform to use to run the transactions on behalf of their customers.
Those companies pay Robinhood between USD 0.00008 and USD 0.00026 for each USD sold in a trading transaction. While it may seem insignificant, Robinhood actually makes a decent amount of income from such system. In fact, compared to companies, such as E*Trade that makes USD 47 million and TD Ameritrade that makes USD 119 million per quarter, Robinhood is said to generate 10 times more in profit.
Looking at this, it can be said that Robinhood's "clients" are actually the high-frequency trading companies, and their "products" are actually the customers who use their investment services.
According to Bitcoinnews, the high-frequency trading companies make hefty profit from Robinhood's customers, whereas the customers don't really pay attention to the unoptimized deals they get from Robinhood, probably due to the "Invest for Free" marketing campaign run by the company.
Robinhood's pofitThis post has been edited by hyperzz: Sep 18 2018, 02:13 AM