💸The stock market is a topic that captures the attention of millions of Americans every day.
📈Accessibility to the stock market has increased with platforms like Robinhood.
🤝Payment for order flow enables middlemen like Citadel to profit off retail investors.
💰The system is rigged in favor of the wealthy.
⚖️Payment for order flow should be illegal, as it perpetuates inequality.
What is payment for order flow?
—Payment for order flow is a practice where brokers like Robinhood receive payment from middlemen like Citadel for sending orders to them instead of directly to the stock exchange. This allows the middlemen to profit off the trade execution.
Who pioneered payment for order flow?
—Bernie Madoff, the infamous Ponzi scheme operator, is credited with pioneering payment for order flow.
Is the stock market accessible to everyone?
—Platforms like Robinhood have made it easier for individuals to access the stock market, but the system still favors the wealthy and perpetuates inequality.
How do middlemen profit from payment for order flow?
—Middlemen like Citadel profit from payment for order flow by executing trades at prices that are slightly more favorable for them, allowing them to collect small amounts of money per trade that add up over time.
Should payment for order flow be legal?
—Many argue that payment for order flow should be illegal, as it creates conflicts of interest and allows middlemen to exploit retail investors for their own gain.
00:00The stock market is a topic that captivates millions of Americans every day, from all walks of life.
02:30Platforms like Robinhood have made the stock market more accessible to retail investors.
05:45The practice of payment for order flow allows middlemen like Citadel to profit off retail investors' trades.
08:15The stock market system favors the wealthy and perpetuates inequality.
10:30Payment for order flow, pioneered by Bernie Madoff, should be illegal.
