Our execution quality
Every time you place a trade, your trust is in our hands—and we're committed to seeking a quality execution on every order.
The execution quality statistics above reflect market and marketable limit orders of 1 to 99 shares received by Robinhood Financial LLC and executed in Q4 2022. These statistics exclude orders for any quantity that included a fractional share component. You can learn more about order routing here.
Price improvement occurs when an order is executed at a price lower than the best offer for a buy order or higher than the best bid for a sell order (i.e., better than the NBBO).
The execution quality statistics above were provided by S3 Matching Technologies (“S3"), which is not affiliated with RHF or RHS.
We have relationships with several market makers, and our routing system is designed to automatically send most orders to the market makers that are likely to give you the best execution, based on historical performance. The routing system is also designed to automatically send a small portion of orders in stocks and ETFs to an exchange, taking into account the quality of past executions. This preserves our ability to maintain trading in the event that one or more market makers is unable to execute orders. Under applicable exchange fee schedules, we would generally pay the exchange when we take liquidity and be paid when we provide liquidity.
To learn more about how stock orders are routed on Robinhood, check out this Help Center article.
Most orders placed on Robinhood are executed at the nationally published quote—also known as at NBBO, or better. This means the vast majority of our customers are receiving, at a minimum, the best available bid or ask price.
We know our execution quality is only as good as our last, so we keep up with the quality you receive by performing thorough reviews on a daily, monthly, and quarterly basis. When we review, we evaluate critical factors that go into receiving a quality execution, like execution price, speed, and price improvement, as well as market conditions.