Stock order routing | Robinhood

Stock order routing

When you buy or sell stocks with Robinhood, Robinhood U.K. Ltd will receive and transmit your orders to Robinhood Securities, LLC who will send your orders in an agency capacity to market makers that typically offer better prices than public exchanges. For fractional share trading Robinhood Securities may act in a (riskless) principal capacity to enable you to trade fractional shares.

What’s order routing?

Order routing is the process of sending your order to a market maker. For further details on our order routing practices, refer to our Order Transmission Policy.

What’s a market maker?

A market maker is a third-party institution that typically acts as a liquidity provider and executes orders.

Example

Let’s say you want to buy one share of MEOW. To do so, you’d place a buy order in the app. Our order routing system uses an algorithm that would send your order to a market maker, based on historical performance.

Which market makers get the orders?

We have relationships with several market makers, and our routing system is designed to automatically send orders to the market makers that are likely to give you the best execution, based on historical performance.

How’s execution quality maintained?

We pursue execution quality by striving for the best price that’s reasonably available for the orders you place.

The majority of our orders are filled at the National Best Bid and Offer (NBBO) or better, which means most customers are, at a minimum, receiving the best publicly available bid or ask price. We also perform regular, rigorous reviews of the execution quality our customers receive, looking at factors like execution price, speed, and price improvement.

Consistent with the US Securities and Exchange Commission (SEC) Rule 606, we disclose our routing practices and other relevant information required by SEC Rule 606(a) in the SEC Rule 606 and 607 Disclosures in our Disclosure Library.

Are my orders shared with anyone other than the market maker?

No. We don’t share your order information with anyone before we send orders to market makers.

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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.

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© 2024 Robinhood. All rights reserved.
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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.