Stock and options order routing
When you buy or sell stocks or options with Robinhood, Robinhood Singapore will receive and transmit your orders to Robinhood Securities, LLC (RHS) (a contracted service provider) who will send your orders in an agency capacity to market makers that typically offer better prices than public exchanges.
For fractional share trading, RHS may act in a principal capacity to enable you to trade fractional shares.
Order routing is the process of sending your order to a venue (such as a market maker) for execution.
A market maker is a third-party institution that typically acts as a liquidity provider and executes orders.
Let’s say you want to buy 1 share of YOWL. 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.
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. Robinhood Singapore does not receive payment for order flow. Your orders are executed through Robinhood Securities, LLC (RHS) in the US, which may receive payment for order flow from market makers.
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.
No. We don’t share your order information with anyone before we send orders to market makers.