What is NBBO? | Robinhood

What is NBBO?

In the US, the stock markets are made up of several exchanges, including the New York Stock Exchange and the Nasdaq. The National Best Bid and Offer (NBBO) provides a consolidated view of the highest bid and the lowest ask (offered) price from all exchanges. NBBO was created by the Securities and Exchange Commission (SEC) to help ensure that brokerages provide their customers with the best publicly available bid and ask prices when trading securities.

What’s the bid and ask?

The bid and ask (also referred to as offer) shows the best quoted price for a stock among all exchanges. The ask price is what you, as the investor, could expect to pay when purchasing a stock on an exchange. The bid price is what you could expect to receive when selling a stock on an exchange, at that point in time.

What does this mean for you?

Like all brokers, we’re required to pursue best execution for our customers. We aim to have your order executed at the NBBO or better. You can learn more about our execution quality here.

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All investing involves risk and a loss of principal is possible.

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

UK Privacy policy

© 2024 Robinhood. All rights reserved.