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  • the man you see is a stockbroker.

  • We've come a long way from the classic image of stock trading.

  • There are still men in loud jackets here on Wall Street.

  • Now that you don't have to be a trader to trade stocks, you could do it right on your phone through APS like Robin Hood.

  • Robin Hood let everyday people buy and sell shares without charging any fees.

  • But it comes with a catch.

  • It's called payment for order Flow, and it's illegal in most markets in the world, including the United Kingdom.

  • Now American politicians want to hear from this man.

  • Robin Hood's chief executive, Vlad tentative about why his company relies on this controversial practice.

  • So let's take a look at how it works.

  • Investors place orders through Robin Hood.

  • Robin Hood sells those orders to investment firms.

  • Those firms execute the orders on behalf of Robin Hood's investors.

  • Remember the Gamestop saga?

  • Small investors rushing to buy shares in a struggling video game retailer all to inflate the price and give a black eye to some major Wall Street players betting against game stock.

  • One of the biggest middleman executing orders to buy game stock shares for Robin Hood's customers was Citadel Securities.

  • So why, you might ask yourself, Would citadel by orders?

  • What is it they say about knowledge?

  • Is power Investment firms get market data they give Robin Hood cash on?

  • Robin Hood is able to give individual investors free trades.

  • The debate over payment for order flow bus back into the spotlight when Robin Hood briefly restricted its customers from buying more Gamestop shares, angering many of its users.

  • How is that a free market with in any way that's not a free market that sounds like communism thes air, dirty, dirty people?

  • They deserve jail time.

  • It also led to accusations that Robin Hood put the interests of Citadel ahead of its own users, charges that both Robin Hood on Citadel deny.

  • But the damage is done.

the man you see is a stockbroker.

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