How Does Robinhood’s “Free Trading” Really Work?
(From The Washington Examiner)
Robinhood’s profit model was that when a Robinhood user bought a stock at $1, an actual Wall Street trader [HEDGE FUND AFFILIATED BROKER] would pocket the dollar, buy the stock at 98 cents, and split the profit with Robinhood.
We wonder if this is “front running” which would be illegal under securities law, but we aren’t lawyers.
Plus the firm sold small investor data to hedge funds.
This article was originally posted here: https://www.ac2news.com/2021/02/how-does-robinhoods-free-trading-really-work/.
