I'm surprised it took so long for the financial media to figure this out. It's the only way they can hope to turn a profit. Not everyone is going to use their overpriced margin loans.
Ok I will say it... I do not get it...This is America. So use a limit order...every once in a while you don't get filled. I think their business model is brilliant! I get the benefit of their smarts... Es P.S. Look I am a full time trader and I am not condoning to use Robinhood to make your living from ok?
If I get filled at my limit price I get what I want. If I use a traditional Broker and pay commish I still get filled at my limit price and I get what I want. But the difference is that I pay commish to get the same if I go the traditional route.
They sell your orders so your fills are meaningfully worse than with direct access. And.. no matter who you use, resting-in-the-market limit orders often suffer from adverse selection.
I did say sometimes you do not get filled...but that is rare...the limit price is the limit price is the limit price...no matter when it gets filled. People that use Robinhood are not scalpers. I also said that you should not use Robinhood if you trade for a living. ElectricAdverseSavant
HF traders are still going to bump you to your limit price though. Does robinhood not allow limit orders? That'd be dumb.