Robinhood - SEC Dec. 17 2020
People who use Robinhood should read this:-) One item noted is this:
B. Background
Principal Trading Firms and Payment for Order Flow
10. Rather than sending customer orders to buy or sell equity securities directly to
national exchanges, Robinhood, like other retail broker-dealers, routed its orders to other brokerdealers (often referred to as “principal trading firms” or “electronic market makers”) to either execute those orders or route them to other market centers. Principal trading firms attempt to profit from executing large volumes of retail buy and sell orders either by taking the other side of customer orders and exiting the positions at a profit, which is also known as “internalization,” or
by routing the orders to other market centers.
https://www.sec.gov/litigation/admin/2020/33-10906.pdf