Your Survival Guy

Preparing your investments and family for when disaster strikes.

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Fidelity #1: GameStop and NEVER Selling You Out

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By alphaspirit.it @Shutterstock

As you know, Robinhood offers online traders an easy way to invest in stocks like GameStop. But did you know it makes it’s money from PFOP or payment for order flow?

What PFOP means is that Robinhood sells its own customer trading data to outsiders—those more than willing to pay for it. Why you might ask? Follow the money.

A hedge fund might want to know what the order flow looks like on a specific stock and bet for or against it. It’s like sitting at the poker table and they see everyone’s hand. It’s basically a legal way (I guess) to show them the money.

Don’t let that be you. It’s yet another reason why I like doing business with my favored custodian Fidelity Investments. It’s order execution is second to none and it doesn’t sell your order flow to some outside predators. You know the guy looking to take your money, and your house, and move you into a van down by the river!

Read here why Fidelity is #1.

Action Line: Make sure you’re aligned with a big boy brokerage platform like Fidelity’s. As you know, investing isn’t always fun and games.

P.S. Did you know actor/writer Bob Odenkirk, Saul the lawyer in Breaking Bad, wrote this skit “Matt Foley: Van Down by the River” when he worked at SNL?

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.