Payment For Order Flow

topic on 2 shows · 3 statements across 3 episodes

How I Built This All-In

3 statements about Payment For Order Flow, every show

HOW I BUILT THIS Assertion Supported
Tenev: All market makers pay Robinhood the exact same order flow rate
“Well, I mean, I would first say they all pay the same rate. We work with the largest firms and you know, the stuff is all highly regulated.”
Vlad Tenev Apr 12, 2021 ▶ 54:17 Robinhood: Vlad Tenev
ALL-IN Assertion Not checkable as stated
Tenev: Payment for order flow enabled commission-free trading for retail investors
“Payment for order flow enabled commission free trading, right? It helps cover the costs of the business that that, that leads to our ability to offer commission free trading. And moreover, it allows smaller investors to participate.”
Vlad Tenev Feb 13, 2021 ▶ 39:12 E22: Robinhood CEO Vlad Tenev breaks down the GameStop situation
ALL-IN Assertion Contradicted
Chamath: SoFi made $1.5M from payment for order flow
“I asked the team at SoFi, like, you know, what's the, how much is how much is made on payment for order flow? And the answer was 1.5 million dollars. And the forecast for next year was like 400 K.”
Chamath Palihapitiya Feb 3, 2021 ▶ 11:39 E20: Robinhood wrap up, Insiders vs. Outsiders, California's failing report card & how to fix it

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