The rumor that the investor is getting fleeced has been debunked, and on the contrary, the investor is potentially getting better execution and price than otherwise. Schwab, Robinhood et al are registered brokers subject to Regulation NMS and have a duty to seek the best execution reasonably available for customer orders.
Your order is not changed, and no HFT is paying Schwab to be able to execute at worse than the publicly quoted price.
Schwab is heavily regulated as a broker and required to execute your trade at at least the National
Best Bid and Offer (NBBO).
Not true. Step 1- open accounts at Schwab and then IB. Put in say a complex butterfly order at the exact same time at both brokers and see the difference in price you get. It adds up to millions pretty quick.
Your order is not changed, and no HFT is paying Schwab to be able to execute at worse than the publicly quoted price.
Schwab is heavily regulated as a broker and required to execute your trade at at least the National Best Bid and Offer (NBBO).
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