A Seeking Alpha report alleges that no-fee broker Robinhood is selling order flow to high-frequency trading (HFT) firms for more than 10 times as much as it pays to other discount houses for the same service. The financial site's review of the broker's recent SEC filing discloses Citadel Securities, Apex Clearing Corp. and Virti Financial on a list of HFT firms buying the orders. According to the author, "the only reason high-frequency traders would pay Robinhood tens to hundreds of millions of dollars is that they can exploit the retail customers for far more than they pay."
The SEC fined Citadel Securities $22 million in January 2017 for publishing "misleading statements" about the way in which it priced trades. The regulatory body justified the fine, noting that "two algorithms used by Citadel Securities did not internalize retail orders at the best price observed nor sought to obtain the best price in the marketplace. These algorithms were triggered when they identified differences in the best prices on market feeds, comparing the SIP feeds to the direct feeds from exchanges. One strategy, known as FastFill, immediately internalized an order at a price that was not the best price for the order that Citadel Securities observed."
Dukascopy Bank Adds Chatbot to Artificial Intelligence Initiative
Switzerland's Dukascopy Bank now offers ChatBot as part of its in-house Dukascopy Connect 911 program. The interface will allow customers to open new accounts and complete banking chores that include "payments by bank transfer, currency exchange, instant payments, instant issuance of virtual cards and ordering of plastic cards, top-ups of those cards, instant top-ups of client's cards issued by other banks." The new feature will also manage transactions tied to the broker’s new Bitcoin – U.S. Dollar CFD contract.
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IronFX Gets Regulatory Approval for IronX Cryptocurrency Exchange
The Estonian Financial Intelligence Unit (FIU) has awarded a full regulatory license for the new IronX crypto exchange. The approval marks the latest development in the joint venture between IronFx Group and EmurgoHK, creator of the Cardano Blockchain. IronFx recently added an ADA Coin option to base currencies that will allow MetaTrader 4 users to withdraw balances, make deposits and set margins on traditional assets that include stocks and forex. The brokerage is also offering an ADA/USD currency pair as a CFD instrument. ADA Coin is the native token (virtual coin) for the Cardano Blockchain.
Saxo Bank Majority Stake Sold to Foreign Investors
Denmark's Saxo Bank has sold a combined 72% stake to Zhejiang Geely Holding Group of China and Sampo of Finland, while CEO Kim Fournais will retain his 25% ownership in the new operation. The sale is expected to open profitable opportunities in China and other emerging markets, allowing the broker to tap new revenue streams.
Pepperstone Hires Compliance Officer
Australia's Pepperstone has hired Peta Stead as group head of compliance and operational risk, with her new role bolstering the broker's excellent reputation and fast growth track. Stead is leaving her position as a senior lawyer for the Markets Supervision Complex Products division at the Australian Securities and Investments Commission (ASIC) to take the new job. Pepperstone scored an impressive 4.0 out of 5.0 in Investopedia's 2018 broker review.