Robinhood has slashed the percentage of orders it sends to Citadel Securities as competition among HFTs heats up6

Robinhood, a darling of millennial stock traders, has slashed the percentage of trades it sends to one of the largest high-frequency firms, a move that might reflect competition for Robinhood’s order flow among high-frequency trading firms is heating up.

The firm, which is valued at $5.6 billion, makes 40% of its revenues by routing its clients’ orders to firms like Virtu Financial and Citadel Securities, according to estimates by Bloomberg. To be sure, almost every single one of Robinhood’s broker rivals — including TDAmeritrade and E*Trade — engages in the practice, referred to as payment for order flow. TDAmeritrade clients, for instance, alleged in a class-action lawsuit that the firm’s PFOF set-up prioritized HFTs over their best interests — charges TD disagreed with.

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