The Alphacution research conservatory published the latest figures on order routing revenues. The data showed that aggregate payments for order flow broke from the range of the previous five years to grow 42.3%.Wall Street broker dealers such as Robinhood, TD Ameritrade , Schwab and ETrade sell customers orders to high-frequency-trading firms such as Citadel Securities and Virtu. A practice that has been met with much criticism.
According to the report estimated routing revenue in millions for 2018 were:
- TD Ameritrade $458 million
- Schwab $139 million
- ETrade $174 million
- Robinhood $69 million
The data shows that Robinhood is getting a growing percentage of revenue from order flow compared to other broker-dealers in the space as the company continues to grow in popularity without charging customers a flat trading fee.
Read the full article from Alphacution Research here: http://alphacution.com/us-equity-payments-for-order-flow-up-42-for-2018/