[KKKKkkkk1]

> Another option, the one that occurs in practice now is for the value to get split between the counterparty taking on risk (Citadel, in the form of less toxicity on orders), the customer (the Robinhood client, in the form of price improvement over the national bid/offer), and Robinhood themselves for sourcing the flow (a commission or payment).

According to the WSJ, compared to other brokerages, Robinhood disproportionately takes that value to themselves [1]. Part of the reason why it's so lucrative for them is that they're steering their clients to options trading, where the incentive payments from the market makers are much higher. I think this quote from the WSJ tells the whole story:

One executive with a high-speed trading firm that executes orders for Robinhood said its price improvement is much worse than that of competing brokers.

[1] https://www.wsj.com/articles/why-free-trading-on-robinhood-i...