How They’re Really Making Money On Your Free Robinhood Trades

Larry Tabb, Head of Market Structure Research at Bloomberg Intelligence, dives into the explosive rise of retail stock trading, especially on platforms like Robinhood. He explains how commission-free trading lures investors while market makers profit from payment for order flow. The discussion highlights the evolving market structure shaped by technology and pandemic-driven trends. Tabb contrasts regulatory environments between the U.S. and Europe, revealing how these differences can affect investor outcomes. Get ready to understand the intricacies behind those 'free' trades!