I'm getting tired of the narrative that Robinhood's business model is screwing retail investors. I no longer think that is true. The armchair mkt structure experts (me included) need to clearly separate naïve idealism from realistic solutions. RANT TIME:
-
-
Protest I can tolerate: PF*F takes flow away from exchanges & raises costs for institutional investors like pensions & mutual funds. Protest I CANNOT tolerate: PF*F raises costs for retail investors who trade .05 shares of
$TSLA from their phone on a Tuesday.Show this thread -
It is okay to want to ban PF*F. It is okay to lobby for that & tweet about that & push for regulation change on that front. But you should NOT say it's to help retail investors. Because banning PF*F won't help them. It will help institutional clients who trade on exchange.
Show this thread -
Part of me thinks the whole PF*F debate would be way less sexy & way less talked about if we WERE clear what banning it would do. Media outlets likely don't care as much that Pension Fund ABC is paying more to trade. Retail mom & pop investors getting screwed plays better.
Show this thread
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.