Difference between revisions of "Robinhood's Gamification of Investing"
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==== Payment for Order Flow ==== | ==== Payment for Order Flow ==== | ||
− | Payment for order flow is a system where instead of using a stock exchange to execute customers' trades, a broker will route trades to a market maker in exchange for a fee.[https://www.bloomberg.com/quicktake/payment-for-order-flow] In this case, Robinhood will sell trades to a firm like Citadel, which will purchase the shares that the investor is selling and give Robinhood a fee for doing so, and Citadel will make a profit from re-selling the shares on the open market for a higher price. | + | Payment for order flow is a system where instead of using a stock exchange to execute customers' trades, a broker will route trades to a market maker in exchange for a fee. Page text.<ref name="test">[http://www.bloomberg.com/quicktake/payment-for-order-flow Link text], additional text.</ref>[https://www.bloomberg.com/quicktake/payment-for-order-flow] In this case, Robinhood will sell trades to a firm like Citadel, which will purchase the shares that the investor is selling and give Robinhood a fee for doing so, and Citadel will make a profit from re-selling the shares on the open market for a higher price. |
Revision as of 20:21, 25 January 2023
Founded in April 2013 by co-founders Vladimir Tenev and Baiju Bhatt, Robinhood Markets, Inc. is a financial technology company that operates an online brokerage for retail investors, offering commission-free trading through its web- and mobile-based platform. Robinhood allows users to buy and sell stocks, exchange-traded funds (ETFs), options, American depositary receipts (ADRs), and certain cryptocurrencies. As of 2022, Robinhood has over 15 million monthly active users and over 22 million funded accounts.