Name: Robinhood’s Customers Are Hedge Funds Like Citadel. Its Users Are the Product.
Brand: vice.com
SKU: vice-com-287
Availability: OnlineOnly

critic

Robinhood’s Customers Are Hedge Funds Like Citadel. Its Users Are the Product.

preview

The Wallstreetbets subreddit are furious after Robinhood stopped allowing trading on GameStop. Here’s how the “commission free” investing app makes money.Citadel Securities pays tens of millions of dollars for this order flow but makes money by automatically taking the other side of the order, then returning to the market to flip the trade. It pockets the difference between the price to buy and sell, known as the spread.Easy access to the market against the backdrop of wild swings in prices have led to higher trading volumes for stocks and options this year—increasing the raw material Citadel Securities uses to turn a profit. At the same time, the rise in volatility has forced spreads wider, increasing the potential income for market makers.Do you work at Robinhood, another trading platform, or an investment firm investing in GameStop? We'd love to hear from you. Using a non-work phone or computer, you can contact Edward Ongweso Jr. securely on Signal at&nbsp;(202) 642 8240, or email&nbsp;By signing up, you agree to the and &amp; to receive electronic communications from Vice Media Group, which may include marketing promotions, advertisements and sponsored content.

The Wallstreetbets subreddit are furious after Robinhood stopped allowing trading on GameStop. Here’s how the “commission free” investing app makes money.Citadel Securities pays tens of millions of dollars for this order flow but makes money by automatically taking the other side of the order, then returning to the market to flip the trade. It pockets the difference between the price to buy and sell, known as the spread.Easy access to the market against the backdrop of wild swings in prices have led to higher trading volumes for stocks and options this year—increasing the raw material...

public

Edward Ongweso Jr

Original reporting on everything that matters.   Sign up for the VICE Newsletter: http://link1.vice.com/join/6qz/signup

vice.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Robinhood’s Customers Are Hedge Funds Like Citadel. Its Users Are the Product.

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS