Robinhood and other Fintech firms are using Social Media-based principles and tools such as "gamification" software to drive customer growth and usage. Legacy Asset Managers are taking the M&A route. Order Flow Revenue or "Pay-to-Play Revenue" is the revenue that Asset Managers generate from directing equity and options order flow to various trade execution firms … Continue reading Two Different Approaches To Growth: Fintech vs. Legacy Asset Managers
Mass Mutual and Athene made a bid for American Equity Investment Life. Activist Trian took stakes in Invesco and Janus in an effort to build one of the largest Asset Managers. M&A is a quick way to scale AUM, but it does not change the paradigm for legacy Asset Managers. Legacy Asset Managers (and depository … Continue reading Consolidation Will Not Save Asset Managers
High Frequency Trading ("HFT") operations have purchased order flow in order to trade in front of it for years. The fact that Robinhood didn't properly disclose its practice is missing the larger issue. This practice provides HFT operations with an enormous advantage. HFT's powerful machines glimpse order flow and execute proprietary orders that benefit from … Continue reading High Frequency Trading Operations Have Traded Ahead of Order Flow For Years. The Practice Stinks.
Robinhood (pvt.), Fidelity (pvt.), Schwab (tkr: SCHW), SoFi (pvt.) and Square (tkr: SQ) each have fractional share investment offerings. Fractional shares enable investors to purchase one U.S. Dollar's worth of a given equity ($5 in Schwab's case), rather than a full single share. For example, investors may purchase $1 worth of Amazon (tkr: AMZN) rather … Continue reading The Rise of Fractional Share Trading