"Robinhood CEO Affirms Payment for Order Flow as Permanent Fixture"

Robinhood CEO Vlad Tenev defends the controversial practice of payment for order flow (PFOF), stating that it is "inherently here to stay" in the United States. Tenev argues that PFOF has helped drive down trading commissions and make investing cheaper for consumers. Critics, however, raise concerns about the conflict of interest it creates between brokers and clients. While PFOF is banned in the UK and the European Union, Robinhood plans to launch in the UK. Tenev notes that PFOF accounts for a small portion of Robinhood's revenue, with the majority coming from net interest income. The company has diversified its business to include other areas like securities lending and subscriptions. The rise of Robinhood has forced traditional brokers to slash their fees, leading to industry consolidation.