“I couldn’t believe it, what I saw on Reddit today,” he sang. “I was hoping to be able to get it directly from you. They told me ‘the order flow, so I searched Google, now I know.’ I think I need to find someone new. “
Bolton continues, “So tell me everything. Tell me who you sell my trades to.”
Criticism of popular culture highlights the enormous attention paid to how Robinhood and other brokers have adopted business models without commissions. Critics say the trade isn’t really free and that Wall Street’s high-speed trading companies are getting the best end of the deal.
During the introduction of his song, Bolton noted that Public.com says it does not sell transactions to third parties.
“I know a thing or two about the breaks. And I’m here to help,” Bolton said.
Robinhood has consistently advocated the use of payment for order flow, which accounts for more than half of the company’s revenue.
In the first half of 2020 alone, Robinhood estimated that its customers received more than $ 1 billion in price improvements, the price they received compared to the best price on a public stock exchange.
Citadel Securities, the high-speed trading company to which Robinhood sends much of its orders, has similarly advocated the practice.
“It’s a key reason retail investors can trade for free or low commissions today,” Citadel Securities founder Ken Griffin said during the hearing.