https://www.barrons.com/articles/sec-meme-stock-bitcoin-trading-51623340620?siteid=yhoof2&yptr=yahoo
“Nearly every major brokerage firm in the U.S. now routes orders to these market-makers and receives a portion of the money that they earn on the spread between bid and ask prices.”
Normally we would call this a kickback. Your free trades aren't free. Your brokerage is in on it.
“rules around market structure that could affect big players like Citadel Securities and Virtu Financial (ticker: VIRT).”
Shitadel is your wife's boyfriend. They are in bed with your brokerage. They will not give you the courtesy of lube or a reach around.
“SEC found that Robinhood had been cutting deals for years with market makers that were bad for their customers—so bad, in fact, that they often outweighed the benefit those customers got from not paying a commission on trades.”
Get the hell off of RobinHood apes!!! The study of Robinhood’s practices was 2015-2018. There is no indication Robinhood has changed their behavior in light of the events that transpired in January and because what they are doing isn't illegal.
“The inquiry isn’t likely to affect little-guy traders who like posting silly jokes on the internet. Instead, the SEC appears to be looking for any indication that more sophisticated investors tried to manipulate the masses.”
The SEC is looking to blame George Soros, Gandolf the Gray and your wife’s boyfriend for this movement. They believe you are dumb apes. They also think you are so stupid that you'll believe payment for order flow is good for the retail investor.
It's a good article. Read the whole thing.
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