Why Robinhood is Selling Your Stock Trades

Robinhood has been in several high profile lawsuits related to selling their customers trades. In this video I talk about why Robinhood transacts using dark pools, why they sell your trades to high frequency traders, and why Robinhood is currently being sued.

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Robinhood is the largest stock trading app in the world with over 13 million users. While many may have assumed they made their money from selling their subscription service and earning interest on uninvested cash, recent reports have shown that Robinhood may now make the majority of its income by selling its users trades to high-frequency traders. These are traders who use advanced computer models coupled with high-speed networks to act on information around changes in a stock's price before anyone else even knows the price has changed.
In addition to this practice, Robinhood also uses Dark Pools to complete their transactions. These semi-transparent stock exchanges work similar to public exchanges like the New York Stock Exchange, but without the public exposure or oversight.
While users may find these practices troubling, Robinhood is not outside the norm in this industry, with almost every brokerage taking part in payments for order flow and quite a few using Dark Pools to buy and sell stock.

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I am not a financial or investment advisor. Everything in this video is for entertainment purposes only. Links above include affiliate commission or referrals, and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.

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Видео Why Robinhood is Selling Your Stock Trades канала Fin Tek