Tag Archives: Brokerage

How Robinhood Is Shaking Up the Brokerage Industry 

As millions of new traders sign up for the investment app Robinhood, the company is facing scrutiny for enabling some inexperienced users to make risky bets. WSJ spoke with a financial education professional and two Robinhood traders about how the app is shaking up the brokerage industry.

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Is Robinhood making money off those day-trading millennials? Well, yes. That’s kind of the point. 

Brokerages make money by allowing companies called ‘market makers’ to act as middlemen between parties that want to buy and those that want to sell. It’s not nefarious, one long-time industry veteran notes, it’s how financial markets work – and work better.

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