What is NBBO? | Robinhood

What is NBBO?

In the US, the stock and options 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 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 or options among all exchanges. The ask price is what you, as the investor, could expect to pay when purchasing a stock or options on an exchange, and the bid price is what you could expect to receive when selling a stock or options 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.

Exchange codes

The single-letter coding system is sometimes used to represent the name of an exchange. The table below shows the exchanges where NBBO pricing information is gathered.

CodeExchange
ANYSE American
BNASDAQ OMX BX
CNYSE National
DFinancial Industry Regulatory Authority
HMIAX Pearl
INASDAQ ISE
JCBOE EDGA Exchange, Inc.
KCBOE EDGX Exchange, Inc.
LLong-Term Stock Exchange
MNYSE Chicago
NNew York Stock Exchange LLC
PNYSE Arca
QNASDAQ, Inc.
TNASDAQ
UMembers Exchange
VInvestors' Exchange LLC
WCBSX CBOE Exchange, Inc.
XNASDAQ OMX PSX
YBATY Cboe BYX
ZBATS Cboe BZX
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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker-dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Review a list of RHC licenses for more information.The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Review a list of our licenses for more information. Credit card products are offered by Robinhood Credit, Inc. ("RCT") (NMLS ID: 1781911 and issued by Coastal Community Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

RHF, RHY, RHC, RCT, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC isn’t a member of FINRA and accounts are not FDIC insured or protected by SIPC.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial's Fee Schedule to learn more.

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