Robinhood Sells Out Retail Investors to Protect Large Clients

Christopher Hoskin
Taking Stock
Published in
4 min readJan 28, 2021

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A closer look at how the App makes its money explains why you can’t trade Gamestop and AMC today.

Image courtesy of Robinhood website.

Robinhood claims they are on a mission to “democratize finance for all,” what they don’t tell you is that they are financing that mission by selling your data to high-frequency trading firms. According to CNBC, “Robinhood has faced criticism over that piece of its revenue model, which relies on selling customers’ orders to high-frequency trading firms like Citadel Securities and Virtu.”

Like all major tech companies that allow you to use their services for free, if you dig a bit deeper, you will find that there may be a much higher cost than you realize. Recent documentaries, like The Social Dilemma, have gone a long way to exposing the real cost of using these platforms; your data and your privacy.

So how does it work? Most trading platforms profit by selling commissions on trades. Normally, only traders with large investment accounts can avoid these commissions. Robinhood, however, boasts about providing commission-free trades to…

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Christopher Hoskin
Taking Stock

Writer | Speaker | Christ-Follower | Theologian | Investor | Tech Addict | Bibliophile. (B.A. Religion VCU/MDiv Regent University). www.comfortandhope.org