[megaframe]

Ran an ML model years ago had a number of great months then out of no where no trade I or the ML would make, would work. Looked like someone was front running my orders and messing with my trades. Weird delays, trades would take to long to go through all, and all sorts of odd events on Level 2. Ended up shutting it down took a good 2 months before my manual trades started going through at a normal rate again.

This is why the whole $0 trading fee and robinhood concern me. I'm paying for the trades and someone is still messing with me.

[smeeth]

I think, though I'm not sure, that RH makes their money by investing in treasury bills with the cash balances of people's portfolios. You're (most likely) not getting secretly screwed.

[elamje]

Contrary to popular belief robinhood makes a good bit of money from selling order data, more than most brokerages. This is due to the fact that most robinhood users are inexperienced, and thus, their trades are less likely to indicate big movements of institutional money. I.e. HFTs pay more for data that is less risky.

Edit: Fun fact, the founders of Robinhood worked at an HFT before starting robinhood, which used to be shown on their LinkedIn until several years ago. Bad optics I suppose.

[kmangutov]

Robinhood sells order flow https://www.cnbc.com/2019/04/18/a-controversial-part-of-robi...

[anthony_barker]

Pretty much everyone sells part or all of their flow to Citadel or Citi.

[imeron]

A great article on the subject: https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...

[webninja]

Why invest in treasury bills at 1.8% yield when you can invest in margin lending at 5%?