[gruez]

>If that were true the market makers would be losing money buying the order flow

No, because as other comments have mentioned, retail orders are generally "non-toxic" and "uninformed", which allows market makers to quote tighter spreads while still maintaining profit.

[jdsully]

Are we then saying the loser is the institutional traders? The money does not come from thin air.

[gruez]

Essentially, yes.