How They’re Really Making Money On Your Free Robinhood Trades
Odd Lots
00:00
Understanding Commission-Free Trading
This chapter examines commission-free trading models, particularly focusing on how brokerages like Robinhood fund retail trades through payments from market makers. It discusses the intricacies of payment for order flow, execution quality, and how these factors impact pricing for retail investors compared to traditional firms. The chapter also highlights upcoming SEC proposals aimed at enhancing transparency and potential advantages for retail trades.
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