Question
In the US, online brokers such as Robinhood provide free share trading to their retail customers by engaging in payment for order flow, meaning that
In the US, online brokers such as Robinhood provide free share trading to their retail customers by engaging in "payment for order flow", meaning that market makers pay the brokers for the trade orders. What are the advantages and disadvantages of this for the retail customers? Are there any issues if the market maker, not the customer, pays the broker?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
8th Edition
0324258917, 9780324258912
