Robinhood tumbles 7% after SEC's Gary Gensler says ban of payment for order flow "is on the table". Securities and Exchange Commission Chairman Gary Gensler told Barron’s that banning the controversial PFOF [Payment for Order Flow] is being considered by the SEC and since this comprises 80% of HOOD's revenue this is bad news for the company.
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DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
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👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
You can now book a live 1X1 call with me via Clarity here: https://clarity.fm/tomnashv2
I don't have a position in HOOD.
DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
Interesting channel. Still, i just down voted you for the fake news, libelous title, and this stuff has to stop. As to the merit of the question, to me the main issue is whether Robinhood offers access to conventional stock exchanges like Nasdaq, NYSE or Xetra, or not. If yes, there is simply no conflict, only more options. If not, their system is likely better for people who give small orders (it depends on the spread, but that is unlikely to be very bad for liquid titles). In short, you are wasting your intelligence barking at the wrong tree, in the wrong way.
Sooooo before Robinhood, are we paying commission, and the brokers could get additional profit from PFOF?
Tom didn't quite finish the point on why PFOF is banned in places like Australia & the UK…. it fails two fundamental tenents of our financial regulations, which are different from the States – disclosure & transparency, especially around conflicts of interest. Our consumer/retail investor protections are there precisely to ensure that the bankers & brokers & traders (with the financial expertise) do not hold an unfair advantage over the average citizen/retail investor (who is assumed to have little to no financial expertise) & can't collude with other businesses to manipulate the markets – it's driven by upfront disclosure of conflicts, remuneration & giving customers the ability to make informed decisions. So PFOF and RobinHood's business model obviously fail these tests miserably!
Will never trade on HOOD don’t trust the CEO and he’s screwing the retailers
Remember, making the poor Rich is illegal — in the eyes of the criminal elite$ that run our world.
End PFOF, your 2 cents is hog wash!!! No free meals goes both ways. This madness must stop, and regulators are the only solution….
We are buying stock with our money? That in itself is saying we are investors, not vagrants asking for a free meal.
if I buy options for $1 and sell it for $2 I only get $1.30 back into my account. I lost money on robinhood but my 1099 said I made money.
You nailed it prof and citadel and there corrupt practices you know citadel owns 13.5% of the entire USA market does that seem right?
Also remember, during the gamestop fiascal, Robin hood actually prevented users from buying shares, they could only sell. That is totally not putting your users best interest, if you only allow one side of the trade!
Allowing retail orders on the darkpool should be outright banned. This practice immediately rick rolls me the second I go to buy a stock, the fact that I anticipate my order to be correct and reflect the live stock price it doesn't. Putting my trade through a group block strips me of that, is direct manipulation. Both the goverment officials allowing this and the institutions happily doing it should all be fined and jailed.
I'm not against PFOF, I never was. I'm against retail investors being pulled to a market no one wants to be on and not have a choice. Taking my trade away from a lit market without my choice should be criminally punished.
Give me a fucking break Tom. How does PFOF cost the retail investor??? How?? It doesn’t. The trades are FREE! When you place your limit order you pay exactly the price that you specify. There is NO additional cost. Why are you wankers against PFOF? Please explain to me how math works differently in your alternate reality.
Did Tom do any videos on UI path? Cathy is going crazy on it and I feel it is a good time to buy since it is dipping slowly.
Hi Tom. Revisit Micron stock (MU). Your last video was right on the money. I agree its significantly undervalued yet its getting destroyed. I've been hanging on the sidelines; it may be the opportunity of the year. Worth a revisit! Thank me later!
You just explained a system I've been trying to understand for a while. You Mr. Nash are a legend!
The amount I have learned from this may trump any finance professor I have had so far
You're not saying that they are front running us…..but they have been fined for it multiple times 🤔
PFOF was made by Bernie Madoff and is banned in other countries. The US is the only place that still tries to convince retail that it’s okay lol.
Thanks man for the explanation & your dedication! Creators like you definitely worth support!
If they didn't stop the buying of our meme stocks this prolly wouldn't have happened
They fleece you 1 percent on each side of the trade… that 2 percent is a lot more than 6.00 trade order for a “free” trade… then magically freeze when it’s not in their favor.
Or on option contracts for stocks under 3 dollars they round up to 5 cents… so .36 cents is now .40 that’s bogus! 100 contracts are pretty expensive now.
I’ve stopped trading with them. I’m happy you’re covering this, Tom.
Thanks for the video. Am I right in assuming that companies like WeBull are also in same boat?
If you boomers wanna go back to paying $10 per transaction go ahead. Skimming a few pennies vs those crap transaction fees.
You hit it on the head. Citadel should not own that much stake in a broker. Robin Hood should have a even amount of market makers holding there orders. Citadel is corrupt af and everybody knows it.
Thanks for explaining this!!! Got a much better idea how HOOD makes most of their money.
Love your video’s, you clearly communicate at times difficult concepts to the less knowledgeable making them better informed. Thank you for sharing
I'm no longer waiting for the EDIL GRANT LOAN because I earn $ 26,700 every 10 days recently
If PFOF is banned and Robinhood can’t use this practice anymore , will Robinhood just completely shut down ? Will I still be able to sell my shares and cash out ?
I will never forgive Robinhood for the stunt they pulled on me back on January 28th of this year during the GME squeeze, so in my opinion, I hope Robinhood burns to the ground.
Hi Tom. Can you analyze Mercado Libre? I'd would buy a round of vodka for your grandfather and say Здоровье!
He should do it. We should have a live trading system that makes transactions for stocks quickly and efficiently. Stock brokers shouldn't exist its 2021. We are giving the rich a cut of our profits!
This isn't going to be an issue. Robinhood has been operating this way for years and standardized the practice, all within the view of the SEC. If there really was an issue that had a material threat to Robinhood, the SEC would have raised it long ago–especially before the company went public.
If you're against banning PFOF, you simply haven't understood truly what PFOF is. There is many systematic problems with PFOF that leads to manipulation, malpractice and unethical actions. PFOF isn't about having a "free" order, its about having the power to get information BEFORE people, delay orders, front run orders, provide piss poor execution and the ability to manipulate the "fair-market". There's a reason why PFOF is banned across the entire world, aside from US of course. For anybody that's "for" PFOF, please educate yourself further before you give your opinion, PFOF runs deep, its not just a "free way to trade".