You don't have to use a PFOF flow broker – in-fact I'd advise against it. But it's kind of a win-win. You get to make "free" trades and the market makers get to make a couple of cents. PFOF is what has enabled this boom in retail trading. The biggest benefices have arguably been retail traders.
Also not all hedge funds are market makers.
> privatizing the profits and distributing the losses if they fail
What are you referring to exactly? I never know what people are referring to when they say this because hedge funds don't generally get bailed out by the government, although they do get bailed out by other companies from time to time.
Perhaps you're referring to the banks that got bailed out during the GFC? Or hedge funds taking small business loans from the government in 2020? But in that case US citizens got bailed out last year too in the form of increased unemployment benefits, stimulus checks and mortgage forbearance.
But like I said, I don't really understand why people are blaming random hedgefunds for the role some hedgefunds played in the GFC.
> Networking with other billionaires on insider information?
Right, but this is illegal. There is regulation to prevent this. You're free to do this too if you're willing to risk getting caught. I see retail investors post about their inside trades all the time on Reddit.
You don't have to use a PFOF flow broker – in-fact I'd advise against it. But it's kind of a win-win. You get to make "free" trades and the market makers get to make a couple of cents. PFOF is what has enabled this boom in retail trading. The biggest benefices have arguably been retail traders.
Also not all hedge funds are market makers.
> privatizing the profits and distributing the losses if they fail
What are you referring to exactly? I never know what people are referring to when they say this because hedge funds don't generally get bailed out by the government, although they do get bailed out by other companies from time to time.
Perhaps you're referring to the banks that got bailed out during the GFC? Or hedge funds taking small business loans from the government in 2020? But in that case US citizens got bailed out last year too in the form of increased unemployment benefits, stimulus checks and mortgage forbearance.
But like I said, I don't really understand why people are blaming random hedgefunds for the role some hedgefunds played in the GFC.
> Networking with other billionaires on insider information?
Right, but this is illegal. There is regulation to prevent this. You're free to do this too if you're willing to risk getting caught. I see retail investors post about their inside trades all the time on Reddit.