As retail traders have flocked to Robinhood, the companies that fulfill its trades have seen massive increases in revenue.
Since the start of 2020, commission-free trading app Robinhood has added more than three million users and seen its trading volume triple. While Robinhood has certainly benefited from the increase in order flow sales, the third-party market makers that purchase that order flow have benefitted most of all. Virtu Financial, the largest purchaser of user orders from Robinhood, recently reported that its revenue increased 267% compared to 2019.
