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by Anon1096
553 days ago
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There is nothing in that statement that actually shows negative effects of PFOF. > creating an inherent misalignment between these platforms and their customers is just speculative harm, and as to the other part about preventing risky trading - this is literally what Robinhood et al customers want! Meanwhile PFOF actually does have proven benefits in that it reduces spread for retail investors. |
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To be fair, some of that is because its existence changes the pool of people trading on lit and thus increases spreads there. There are systemic effects that are a function of pfof that make it look better, and ofc there are a wide range of actors of varying quality...