Robinhood stock trading app confirms $110M raise at $1.3B valuation
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Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#2Nice, now hopefully they can deliver on a public API, short selling, and a desktop app.
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#3> Robinhood also earns money from rebates its gets for directing its order flow to broker dealers, though Bhatt insists “We do not sell data to anyone. We have never sold data to anyone. We just do not do that.”
Just so everyone knows, order flow from unsophisticated investors is considered a valuable resource because, when filling it, you know that you're more informed than the person trading against you.
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#4A unicorn with a revenue stream, how novel.
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#5> Robinhood also earns money from rebates its gets for directing its order flow to broker dealers, though Bhatt insists “We do not sell data to anyone. We have never sold data to anyone. We just do not do that.” Just so everyone knows, order flow from unsophisticated investors is considered a valuable resource because, when filling it, you know that you're more informed than the person trading against you.
Great catch, missed that during the article skim.
Doesn't this also enable front-running? Regardless, this is useful info for HFT funds, right?
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#6> Robinhood also earns money from rebates its gets for directing its order flow to broker dealers, though Bhatt insists “We do not sell data to anyone. We have never sold data to anyone. We just do not do that.” Just so everyone knows, order flow from unsophisticated investors is considered a valuable resource because, when filling it, you know that you're more informed than the person trading against you.
Can you extrapolate on order flow from unsophisticated investors? Why is it valuable?
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#7> Robinhood also earns money from rebates its gets for directing its order flow to broker dealers, though Bhatt insists “We do not sell data to anyone. We have never sold data to anyone. We just do not do that.” Just so everyone knows, order flow from unsophisticated investors is considered a valuable resource because, when filling it, you know that you're more informed than the person trading against you.
Great catch, missed that during the article skim. Doesn't this also enable front-running? Regardless, this is useful info for HFT funds, right?
They explicitly call out in the article they don't do that
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#8> Robinhood also earns money from rebates its gets for directing its order flow to broker dealers, though Bhatt insists “We do not sell data to anyone. We have never sold data to anyone. We just do not do that.” Just so everyone knows, order flow from unsophisticated investors is considered a valuable resource because, when filling it, you know that you're more informed than the person trading against you.
To be fair, every large bank has a brokerage and wealth management division and a capital markets division. They are all analyzing trades placed on brokerage system to find trends and opportunities for the capital markets division. This is in fact the major driver for big data initiatives in the banks.
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#9> Robinhood also earns money from rebates its gets for directing its order flow to broker dealers, though Bhatt insists “We do not sell data to anyone. We have never sold data to anyone. We just do not do that.” Just so everyone knows, order flow from unsophisticated investors is considered a valuable resource because, when filling it, you know that you're more informed than the person trading against you.
Great catch, missed that during the article skim. Doesn't this also enable front-running? Regardless, this is useful info for HFT funds, right?
Front running is something which only exists when you need to fill an order which is too large for one stock exchange's ledger at that price. For retail trader that should not be a common case.
Re: Robinhood stock trading app confirms $110M raise at $1.3B valuation
#10My understanding is that if you trade through a platform like this, that's monetizing through order flow, you're getting screwed by HFTs. I.e. AFAIK Robinhood doesn't need to be selling the data to HFTs (which they don't do), for you to get screwed by them.
Anyone here in the space who can quantify the "hidden" cost you incur because of more sophisticated traders trading against you?
It feels like working with a broker who's explicitly charging you might actually be cheaper if you take this "cost" into account?