Robinhood traders trade at one or sometimes even two orders of magnitude the velocity of other brokers, he added. That's largely because of 'the mobile-first, social media-infused design,' said Paul Rowady, founder of Alphacution. The biggest reason, according to Alphacution: Robinhood's customers trade much more than those using other brokers. So how can Robinhood make orders of magnitude more from each customer's dollar than its competitors? Robinhood's order revenue to average account size ratio was 72,432, almost doubling in a year.

And assets under custody for the quarter ending March 31 spiked to $80.9 billion across 17.7 million accounts, for an average account value of $4,572.

Robinhood generated $331 million in order routing revenue for equities and options in Q1 2021, up 263% from $91 million a year ago. Robinhood's order routing bonanza has only increased since then. That calculation is a proxy for a broker's efficiency in extracting value from the accounts it holds.ДЇor Robinhood, the ratio of its order routing revenue to average account value was 40,683, compared to 2,079 for TD Ameritrade, 891 for E-Trade, and 195 for Schwab, Alphacution found.

Alphacution compared the firms' total order routing revenue, which includes payment for order flow, to its average account value. The data shows how Robinhood makes much more from its users' trades than competitors do. (Alphacution looked at Q1 2020 because consolidation in the sector made later comparisons difficult: In October, Charles Schwab closed its acquisition of TD Ameritrade and Morgan Stanley completed its acquisition of E-Trade.) As an asset manager, Robinhood looks like a pipsqueak. That's an average account value of $2,235, compared to an average account value of $97,214 for TD Ameritrade, $86,131 for E-Trade and $274,568 for Schwab. Its assets under custody as of the end of March 2020 were $19.2 billion across 8.6 million users, according to its S-1. The accumulation of wealth provides more opportunities for charging fees and cross-selling products. The online brokerage game has long been defined by gathering more and more assets under management. The sums in question are typically fractions of a penny a share, making it hard to see the harm - except when, as Robinhood has in filing to go public, the overall numbers become visible. It's just better at it, the data shows.Д«rokers and market makers say these payments provide better prices for retail investors as well as fee-free trading, while critics say that brokers and market makers are grabbing the lion's share of benefit from these trades when they could be getting better pricing elsewhere. Payment for order flow, the system in which market makers pay brokers for sending them retail orders to execute, dates back to the 1990s, and Robinhood isn't the only one using it. Robinhood's retail trading business, which relies on payment for order flow, is much more lucrative per dollar held in its users' accounts than its competitors. Robinhood is far better at selling that product than Schwab, E-Trade or Ameritrade, according to a new report by Alphacution Research Conservatory. But it's also a powerful illustration of the maxim that if you're not paying for something, you're not the customer, you're the product. The company famously doesn't charge commissions. Drawing from the vision and vast expertise of the leaders engaged across the ForumвЂ™s communities, the Great Reset initiative has a set of dimensions to build a new social contract that honours the dignity of every human being.When Robinhood filed its S-1 to go public, it also revealed just how much better it is than its long-established competitors at making money from retail trading. The opportunityДЄs we enter a unique window of opportunity to shape the recovery, this initiative will offer insights to help inform all those determining the future state of global relations, the direction of national economies, the priorities of societies, the nature of business models and the management of a global commons. Leaders find themselves at a historic crossroads, managing short-term pressures against medium- and long-term uncertainties. The inconsistencies, inadequacies and contradictions of multiple systems вЂ“from health and financial to energy and education вЂ“ are more exposed than ever amidst a global context of concern for lives, livelihoods and the planet. The Covid-19 crisis, and the political, economic and social disruptions it has caused, is fundamentally changing the traditional context for decision-making.

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