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How does Robinhood's 5% mark-up on all market orders work?

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Here is the thing that people in the trading industry do not understand. People actually GET PAID to trade. Why? exchanges such as New York, NSDQ NEEDS people to provide liquidity in the market for other people to move stocks.. So brokers actually take the rebate from the exchanges and double bill their clients . read more

The reason why this 5% collar exists seems to be confusing a few people. The 5% collar is to prevent market orders from being filled at ridiculous prices if there isn't enough liquidity, or if the price has moved significantly overnight. read more

Yup, market order has a 5% mark-up. Your stock effectively goes -5% right off the bat if I understand it correctly. read more

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