{"id":194569,"date":"2021-03-05T03:40:48","date_gmt":"2021-03-05T00:40:48","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/robinhood-exec-wants-users-to-stop-worrying-about-its-business-model\/"},"modified":"2021-03-05T03:40:48","modified_gmt":"2021-03-05T00:40:48","slug":"robinhood-exec-wants-users-to-stop-worrying-about-its-business-model","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/robinhood-exec-wants-users-to-stop-worrying-about-its-business-model\/","title":{"rendered":"#Robinhood exec wants users to stop worrying about its business model"},"content":{"rendered":"

“#Robinhood exec wants users to stop worrying about its business model<\/strong>”
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Beleaguered no-fee trading app<\/a> Robinhood is now turning to its chief operating officer to help quell backlash over its response to the \u201cReddit<\/a> rally\u201d in January.<\/p>\n

In a Thursday blog post, Robinhood COO Jim Swartwout vowed to \u201cdemystify\u201d<\/a> the company\u2019s controversial practice of selling order flow to Wall Street. <\/p>\n

Swartwout, a 50-year-old former executive at online brokerages E*Trade and TDAmeritrade, told users that selling order flow to market makers is the only way it can offer its product for free. Robinhood, he said, only makes \u201ctwo-tenths of a penny\u201d for every share bought and sold on the platform. <\/p>\n

\u201cTo compete with exchanges, market makers offer us rebates,\u201d Swartwout said. \u201cMarket makers typically give you better prices than exchanges.\u201d<\/p>\n

The business model has become a PR albatross for the trading platform ever since its controversial decision in late January to bar users from buying shares of popular stock like Game<\/a>Stop. <\/p>\n

It\u2019s raised the eyebrows of politicians, who pressed Robinhood chief Vlad Tenev and Citadel CEO Ken Griffin on best execution during a Congressional hearing on Feb 18. Citadel pays Robinhood for its order flow. <\/p>\n

Critics have also attacked the app\u2019s \u201cgamification\u201d of trading via an interface that drops virtual confetti and balloons across screens to encourage trading. <\/p>\n

Even prior to the latest controversy, Robinhood has come under scrutiny by regulators who fined the company in 2019 for failing to get its customers what is called \u201cbest execution\u201d on their trades.<\/p>\n

But Swartwout on Thursday insisted this is the golden age for traders.<\/p>\n

\u201cIt\u2019s easy to see why there\u2019s no better time to be a retail investor,\u201d he writes.\n <\/p><\/div>\n

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If you want to read more News<\/a> articles, you can visit our News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n

Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Robinhood exec wants users to stop worrying about its business model” Beleaguered no-fee trading app Robinhood is now turning to its chief operating officer to help quell backlash over its response to the \u201cReddit rally\u201d in January. In a Thursday blog post, Robinhood COO Jim Swartwout vowed to \u201cdemystify\u201d the company\u2019s controversial practice of selling…<\/p>\n","protected":false},"author":1,"featured_media":194570,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/03\/gary-gensler-robinhood-02.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[86706,96147,5055,72128,86806,73785,70359,70360],"class_list":["post-194569","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-robinhood","tag-3-4-21","tag-apps","tag-gamestop","tag-ken-griffin","tag-markets","tag-stocks","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/194569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=194569"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/194569\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/194570"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=194569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=194569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=194569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}