Robinhood, the uber-popular brokerage, helped usher in a new era of commission-free trading. It pushed established financial institutions, such as Charles Schwab and Fidelity, to follow suit. Sadly, ...
Payment for order flow is a common practice in the investing world that lets retail brokers be paid by market makers, wholesalers and others in exchange their retail clients’ orders to buy and sell ...
In January 2021, the GameStop trading halt exploded across the headlines. Consumer advocates and the financial press pointed fingers at a number of industry players, paying particular attention to the ...
The old way a financial brokerage made money was to charge a fee whenever someone bought or sold stock. A company like TD Ameritrade or Charles Schwab would charge $4.95 or $6.95 (or whatever) in ...
Payment for order flow (where market makers pay brokers to route orders for execution) and the duty of best execution (which requires a broker to seek the most favorable terms reasonably available for ...
Robinhood’s zero-commission trading model came under scrutiny earlier this year during the WallStreetBets-fueled trading frenzy in GameStop Corp. (NYSE:GME) and other so-called “meme” stocks. The zero ...
As with Gamestop, I hesitated to write a payment for order flow post given that so much has been written about this already. But since it is a topic that comes up often, I thought I would share my ...
Asset bubbles are easy enough to define, but not so simple to identify. WSJ’s Gunjan Banerji explains what bubbles are exactly, how they form and what happens when they burst. Illustration: Jacob ...
Recently, the SEC chairman, Gary Gensler sent shockwaves through the world of retail investing by stating that a full ban on the popular ‘payment for order flow’ (PFOF) operating model that enables ...
The first quarter of 2021 saw a substantial spike in retail trading activities, mainly caused by various short squeezes in stocks like GameStop GME and AMC Entertainment AMC Entertainment Holding.
Trading app Public stopped using payment for order flow and now says it's better for it. Some retail traders have petitioned for a ban on the practice, and regulators are considering it. In several ...
Robinhood is hitting back at recent comments from SEC Chairman Gary Gensler, who said a payment for order flow ban was under consideration at the agency last week. Robinhood's chief legal officer Dan ...