His company never put in effort for quality customer service - Agents were told to respond quickly so they can meet production quotas for ticket solves.
According to the SEC, Robinhood sold order flow to the market maker that gave it the best rebate rather than the one that offered the best price for Robinhood's clients.
If I buy 100 bucks of assets on RH, I pay 100 bucks. The price is right in front of you to decide for yourself with no secrets. Who cares how the order executes. I get exactly what I pay for every time. And the SEC is not your friend.
@@danrich6448 Everyone who wants true price discovery cares about how the order is executed. The market makers who offer the best price turn around and sell those orders in the dark pools. Those market makers also see every single order, so they have the ability to counter the trend if they so choose. If they so happen to have a short on a particular stock and they take a buy order for 2K shares of that stock , then they go ahead and send those orders to the Dark pools and turn around and initiate a 4K short on that stock on an open exchange. The 2K buy order never places upward pressure on the price of the stock because it was not placed in the open market. Meanwhile, their short places quite a bit of downward pressure on that price. True price discovery is squashed.
@@danrich6448your missing the fallacy here.. Non-payment for order flow: Suppose that you have $100 and you can place an order on the offer of $1.00. You can buy 100 stocks. Now suppose that it costs $0.50 in commission’s and you have $100. Then you would buy 99.5 shares. Payment for order flow: Now suppose that you have $100 and the ask is effectively $1.01, you now own 99 shares. In the first example, you have a cash outlay of $0.50 and you have acquired 99.5 shares. In the second example, you have cash outlay of $0.00 (cheaper right!) but you have only acquired 99 shares… The non-order flow example gets you 99.5 shares for $100 and the order flow example gets you 99 shares for $100. Therefore, the order-flow example cost you $0.50 cents more than the non-order flow example even though you have paid $0.00 cash… hence the fallacy!
this guy needs to be fired. Robinhoods direction is very disappointing. they could have had to change to change and break into a new industry. just like Charles Schwab changed the discount brokerages in the 80s. how ever robin hood damaged there reputation.