Robinhood's biggest business tripled in the 1st quarter as Reddit-fueled day-trading ran wild
- Robinhood's revenue soared in the first quarter as a result of the early 2021 social-media fueled day-trading mania.
- The trading app's
payment for order flowbusiness generated $331 million in revenue during the period, per the WSJ.
- That was more than triple the amount the amount generated in the first quarter of 2020.
The Reddit-fueled trading frenzy of early 2021 propelled Robinhood's biggest business to new heights, according to The Wall Street Journal.
The brokerage app's payment for order flow generated $331 million in revenue in the first quarter, said the Journal, citing a securities filing from last week. That's more than triple the $91 million
The SEC alleged that the brokerage routinely provided inferior trade prices, even as Robinhood marketed its trades as commission-free and executed with quality that matched or beat peers. The second-rate prices have cost clients a total of $34.1 million, even after accounting for the lack of commission fees, the SEC said.Read more: Buy these 14 high-quality stocks poised to beat the market as the economy enters a new phase of rapid growth, Credit Suisse says
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