How is it legal to sell people’s trading order data to WS companies?
Jan 30, 2021
15 Comments
When RH first came out as “free” trading platform, everyone was so mesmerized. Now we are learning that they literally sell your orders to the third parties. Let that sink for a second..
Those third parties arbitrage your sell and buy orders and make billions without producing zero value to the economy or people. And with zero risk! How is that even legal?? #personalfinance #investments
So looks like the real customers for RH WS titans, and little men are the products.. am i missing something??
PS: Never used RH.
comments
The FB users are the products...am I missing something?
Market makers add liquidity to the market and requires complex infrastructure and risk management to support the operation.
But you share reading assignments.
Can you summarize your position with a simple layman terms just like I did?
Just like layman thinks FB selling user data sounds wrong but you know how it really works. You are sounding exactly like them.
This comment was deleted by original commenter.
Rest of what you said is situational. Hedge funds exist to create profits for millionares. They spend a large portion of those profits to lobby congress. Citadel is hardly the worst player here, they only make up 40% or so of RHs flow based on recent information. This is how the us economy works and has worked since basically forever.
I guess my point is, whatever opinions you hold about this mess, and make no mistake this is a major potentially market crashing mess, surprise should not be one of them. This is how the poor people have been screwed over since the current economy took shape back at the start of the 1900s, and its not likely to change without significant corrections, both in market value and political landscape.
Tldr; buy gme stonks and be prepared to lose all your money when the entire stock market crashes back to the low 200s: not market advice, just opinion.
That said I never used RH. Fidelity’s been good.
The fact that rh sells trades became public knowledge 2-3 years ago. I had used RH even after knowing that, but the recent fiasco is much worse than routing of trades imo.