Chapter
Robinhood's Profit Comes from the Options Market
29:08 - 34:33 (05:24)
Payment for order flow in the options market is the main source of profit for Robinhood. Despite criticisms of the market's broken system, it still works reasonably well for serious investors who are seeking a free market and a libertarian way of approaching investing.
Clips
The near-zero interest rates on savings incentivizes investors to flood their money into the market, inflating the assets beyond their actual value.
29:08 - 31:04 (01:55)
Summary
The near-zero interest rates on savings incentivizes investors to flood their money into the market, inflating the assets beyond their actual value. Investment companies refer to this as "dumb money," profiting off of the inflated market, all the while not protecting their investors' best interests.
ChapterRobinhood's Profit Comes from the Options Market
EpisodeJon Talks Stocks and Ukraine
PodcastThe Problem With Jon Stewart
The stock market system is broken and at the mercy of greed.
31:04 - 32:42 (01:38)
Summary
The stock market system is broken and at the mercy of greed. Those who claim to advocate for a free market should acknowledge this fact, instead of being dishonest or divorced from reality.
ChapterRobinhood's Profit Comes from the Options Market
EpisodeJon Talks Stocks and Ukraine
PodcastThe Problem With Jon Stewart
Robinhood profits greatly from the options market, where dumb money investors have more room to make trades, and the payment for order flow system allows for larger profits.
32:42 - 34:33 (01:50)
Summary
Robinhood profits greatly from the options market, where dumb money investors have more room to make trades, and the payment for order flow system allows for larger profits.