@davidmoran4875
Who's watching this after the GameStop/Reddit fiasco?
@InvestingHustler
If youâre not paying for the product , you are the product ! Well said đ
@Cooter-Clapper
They have been exposed and class action is on the way!!!
@MrMujinn
This video so relevant now
@ResourceTalks
There is a lot going on with RobinHood in the US. However, letâs be honest. Itâs a free platform, off course there was a catch. But does that really matter for small investors like us? I donât 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.
@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.
@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!
@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!
@johnzuluaga-romero9216
Long-term Investing is better than short-term trading. At the end of the day, day traders and short-term traders donât have sustainable strategies. But it depends.
@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.
@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!
@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 $.05 spread, which is income to the high-frequency trader who bought your order from Robinhood. Note that in this example, you start your position with a 5 percent loss whether it is a market or limit order.
@niecyh2313
Which one doesnât sell data? Or does all?
@govou3000
I would rather lose a few cents than paying 7$ per trade using other brokers.
@FaceTank-z8g
Interesting topic Michael. Though I donât mind them having my data for business purposes but it can do harm when doing market orders
@Scorpiomaj27889
Great video, just one thing to be clear about, Facebook absolutely does not sell your data, they sell ACCESS. Think about pre-internet, I have a large mailing list of people in the state, I know which ones enjoy horseback riding, who the sports car people are and the who the chefs are. I can sell access, for a price, I will send your car ad to the right people - I won't tell you who those people are, because next month I can sell you that advertisement again. YOU NEVER GIVE UP THE LIST, because then the retailers don't need you anymore. Same thing with facebook, the retailer does not know who you our, at least not from facebook. There is no upside for facebook to sell your data. (If the retailer actually got your data, they could snail mail you, they could email you, they could pay Google to advertise to you or various other methods that don't result in revenue for facebook.)
@annabolstridge349
Thank you this has happened to me buying at one price and it executed at 1,2,3, cents higher
@nishiki393
Great to know, and typical MJ excellence... very balanced, not for manufactured balanced metrics, but because it is most honest and unbiased/rational in this case (and many others). In other words, never false-equivalence class âbalancedâ. What a gem you are, and this channel is definitely going places and I enjoy watching great creators grow and evolve and be naturally rewarded for their excellence (and contributing in support of and toward that as I can with thumbs-ups, comments, full watches, shares, etc.
@ZacharyLaid
First! Haha letâs go Michael, those traders can take all the date they want, we still stay winning đđ°
@MichaelJayValueInvesting