@InvestingHustler
If you’re not paying for the product , you are the product ! Well said 👌
@davidmoran4875
Who's watching this after the GameStop/Reddit fiasco?
@ResourceTalks
There is a lot going on with RobinHood in the US. However, let’s be honest. It’s a free platform, off course there was a catch. But does that really matter for small investors like us? I don’t think so. But something one of us over here at BABY did actually was (while living in the US this past year) have different portfolios and he never kept 7 figures at one place.
@Cooter-Clapper
They have been exposed and class action is on the way!!!
@MrMujinn
This video so relevant now
@sssss222
Best explanation of selling order flow I've seen - nice job. One thing: I think Robinhood sells order flow on limit orders, too. So while you're still guaranteed to pay/get no more than the limit price, the execution quality is still worse than it'd be at most other brokers.
@kevinanguka3804
Great work man! I had read this article and it kind of went over my head and they didn't really discuss the consequences of this. You did a great job breaking it down, thanks!
@LydiaSantiago
I knew there was a catch!! I always use limit orders so can make sure I get the price I want. I rather be patient and wait for my order to execute.
@RealLifeMoney
Wow thats pretty crazy but I could easily see this happening. This would be a perfect time for investors to learn about limit orders. I always set those up and never use market orders to get a more set price that you like :) Thanks for sharing!
@johnzuluaga-romero9216
Long-term Investing is better than short-term trading. At the end of the day, day traders and short-term traders don’t have sustainable strategies. But it depends.
@ckamal1
A limit order won't make a difference. Say the market price of a stock is $1.00, meaning that is the lowest asking price. Say the spread is $.05, meaning the highest bid is $.95. In a direct market exchange, if you put in a bid of $.96, you would put yourself at the front of the line of buyers, making your bid the new "market price" for sellers (the price at which they are guaranteed an immediate order fill). However, with these commission-free brokerages, the bid and ask amounts are "collared," meaning that your limit order of $.96 will not fill until is matched with a $.91 ask. This maintains the hard $.05 spread, which is income to the high-frequency trader who bought your order from Robinhood. Note that in this example, you start your position with a 5 percent loss whether it is a market or limit order.
@ZacharyLaid
First! Haha let’s go Michael, those traders can take all the date they want, we still stay winning 😎💰
@scottscriticalmass
I likely wouldn't change brokerage houses if I was at Robinhood, but this still smells a bit in my opinion. I'm personally happy with Schwab, but understand why some prefer no trading fees and therefore do their business with Robinhood. While I don't follow Robinhood's business, always nice to see different types of content discussed. Thanks MJ!
@anythinginteresting3412
Good to know there are always some downsides with each platform. I am stuck with the trade fees but Robinhood users are stuck with frontrunners.
@annabolstridge349
Thank you this has happened to me buying at one price and it executed at 1,2,3, cents higher
@slow-moe3518
I honestly don't think high frequency trading agencies need the help of users on Robinhood to make money.
@govou3000
I would rather lose a few cents than paying 7$ per trade using other brokers.
@eliasweber7460
picking up pennies in-front of bulldozers. of course with HFT algos, its all possible. still though a 200$ sized position doesnt give a HFT much room to profit. i think you should have used a larger position size as an example to get the point across. maybe 1,000$-10,000 average size
@FaceTank-z8g
Interesting topic Michael. Though I don’t mind them having my data for business purposes but it can do harm when doing market orders
@MichaelJayValueInvesting