Hedge Funds Are USING YOU!! Here’s How!! 😨


📲 Insider Info in my Socials 👉 https://guy.coinbureau.com/socials/
🛒 Get The Hottest Crypto Deals 👉 https://guy.coinbureau.com/deals/
👕 “Crypto Logo” Shirt 👉 https://store.coinbureau.com/product/btc-evolution-white-t-shirt
🔥 TOP Crypto TIPS In My Newsletter 👉 https://guy.coinbureau.com/signup/

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

📺 Useful Vids 📺

Robinhood Alternatives 👉 https://www.youtube.com/watch?v=3YHe9-mN2Hs
Robinhood vs. Coinbase 👉 https://www.youtube.com/watch?v=Jqp47jZrB7c

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

– TIMESTAMPS –
0:00 Intro
2:29 Robinhood Overview
4:50 Payment for Order Flow
9:17 Why Pay For it?
11:26 More Rules Incoming?
13:12 Impact of these Rules?
16:40 For the Love of Defi
19:33 Conclusion

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

⛓️ 🔗 Useful Links 🔗 ⛓️

Payment for Orderflow: https://centerpointsecurities.com/payment-for-order-flow-guide/
Robinhood S1: https://www.sec.gov/Archives/edgar/data/1783879/000162828021013318/robinhoods-1.htm
Robinhood Risks: https://www.wsj.com/articles/robinhood-is-warning-you-about-certain-risks-before-you-invest-in-its-ipo-11627497638
Robinhood Execution Policy: https://robinhood.com/us/en/about-us/our-execution-quality/
Robinhood SEC Fine: https://www.sec.gov/news/press-release/2020-321
Robinhood Under Scrutiny: https://www.businessinsider.com/why-robinhood-payment-for-order-flow-system-issue-for-users-2021-7
Fees: https://cdn.robinhood.com/assets/robinhood/legal/RHF_Fee_Schedule.pdf
Bernie Madoff PFOF: https://seekingalpha.com/article/112537-payment-for-order-flow-madoffs-earlier-days

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

🏹 Robinhood Overview 🏹

A commission free broker that lets you buy fractional stocks to your heart’s content. All on a clean and efficient mobile app that is super easy to set up and use. This was the reason for Robinhood’s massive success over the past 2 years.

In 2018, they had 1.8 million monthly active users. At the beginning of 2019 that number stood at 3.3 million and in 2020 they reached 4.3 million.

In the lockdowns and home traders in 2020, this meant that there were many people who wanted to get in on the Robinhood action.

💴 Payment for Order Flow 💴

This is when a broker is paid by a third party to direct their orders to said third party.

It’s a business practice that has been alive on Wall street for decades and is one of the predominant methods that retail brokers use to earn money.

Brokers are supposed to choose those brokers that give them the best execution but you can see the conflict of interest when they are being paid for this information.

There are SEC rules around PFOF disclosure. Robinhood breached these rules and hence the reason that they had to pay a $60m fine to the regulators.

💴 Why Pay For Order Flow? 💴

They can arbitrage the rates between the spreads.

Basically, they will buy or sell an asset between the bid-ask spread and capture the profit depending on whether the client placed a buy or sell order.

However, the bulk of the money is made through knowing how trader’s orders are positioned and trading against them. They can also front run some of those order by batching them. The bulk orders purchased will mean that they can sell to these buyers at a higher price.

🤔 Impact of Regulation? 🤔

There are increasing calls from a number of regulators which could see more stringent rules placed on order flow. Hence, if there is any sort of regulation it could either ban it entirely or there could be strict reporting requirements for these users.

There is a significant risk to Robinhood’s business model. They have highlighted this in their S1 filing where they state that they have no recourse from the market makers should they choose to cease their agreements.

There are also risks to Robinhood from the fact that they have had losses in the past and it is likely they could suffer these in the future.

🤔 Why I love Defi 📈

I love its transparent blockchain. Decentralised Finance or Defi is creating a world where you won’t need a Robinhood or any other middleman for that matter. There is no central entity that can control what you do on it and, because it is built on an open source blockchain, you can see exactly what is going on.

There are no regulators that are determining how they function, they are governed by code only. They are open for trading 24/7/365 and tokenized assets that can be written on anything that has a price.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

📜 Disclaimer 📜

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.

#Robinhood #SEC #Stocks #HOOD #crypto #gamstop #AMC

3 Tips For Getting the Best Software for Forex

With the success of this technology, there is more software for foreign exchange investing on the market than ever, trying your focus. After utilizing this modern technology for 6 years myself, I have actually assembled with each other my ideal experiences and have actually placed with each other this 3 tips overview for selecting the finest of the finest when it involves software application for foreign exchange trading.

The History of Spread Betting in the Financial Markets

Spread Betting is a popular and also tax effective method to trade the monetary markets in the UK. This write-up provides an overview of exactly how spread betting has actually advanced and where it started.

Online Forex Trading – Reasons You Should Join in the Trade

The forex trading is a rapid creating company. Several people are investing their cash in on-line foreign exchange trading for maximum returns. If you have been looking for a suitable service you can buy; read on factors why you ought to be considering forex trading online.

How to Increase Your Income in Forex Trading

Forex trading is an organization where traders can either make revenues or losses as a result of the changes in the prices of currencies. However, the earnings or losses understood usually rely on exactly how certain people use their abilities and knowledge. Forex for novices is typically deemed a challenging concern mostly due to the fact that one has to undertake a training program that is challenging to realize.

Getting to Know The Spot – A Basic Lesson In Currency Option Trading

Currency alternative trading as a derivative product of fx market offers an interesting chances for foreign exchange investors and speculators. With currency choice trading, investors can have a good gain with restricted downside risk on their side. As we all recognize, in money option trading, investors can take the chance of only the costs or option cost to gain a good amount of profit as if they trade in forex spot (cash) market.

You May Also Like