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Robinhood's PFOF Payments Declined By 35%, Reflecting the Growing Role of Crypto Revenue
Summary: Payment for order flow(PFOF) is becoming less important to the now-public stock and crypto brokerage Robinhood, according to data compiled by The Block. PFOF refers to the process of brokers offloading their retail stock and options orders to large trading firms to internalize. During the second quarter of the year, Robinhood reported in a 606 ...
Payment for order flow(PFOF) is becoming less important to the now-public stock and crypto brokerage Robinhood, according to data compiled by The Block. PFOF refers to the process of brokers offloading their retail stock and options orders to large trading firms to internalize.
During the second quarter of the year, Robinhood reported in a 606 filing with the Securities and Exchange Commission that it brought in $217 million from payment for order flow. Those trading firms pay for that order flow. Robinhood has long been reliant on the practice for the bulk of its revenues.
Robinhood's PFOF payments declined by 35% from the first quarter of the year to the second. In Q1, it made $331 million from PFOF. Meanwhile, the firm is set to see its revenues increase from $522 million in the first quarter to an estimated $546 million to $574 million, reflecting an increase of 4.59% to 9.96%.
By Amy Liu
Tags: Crypto,PFOF,Robinhood
Link: Robinhood's PFOF Payments Declined By 35%, Reflecting the Growing Role of Crypto Revenue [Copy]
