Hi @xinjalotto, thanks for your reply.
My apologies, I think I wasn’t 100% clear with my question. I’m not seeking to do HFT myself on the platform, what I’m wondering is whether, when I place a buy or sell order on Dabble, what the order routing will be, and whether through the journey between me placing my order and it getting filled, are there any HFT firms in the ecosystem.
For example, if I was to place an order to buy Stock X at $1.05, which exchange does it get sent to to be filled? If it happened to get routed through the BATS exchange, they are known for selling order flow to HFT firms, who then use their algorithms and speed to sweep up all of Stock X that is going for $1.05 and cheaper, and then turn around and tell me it’s only available for $1.06 (i.e. scalping the trade).
So I suppose my ultimate question is how is Xinja able to offer brokerage-free trading in the US market? Is it because Xinja will receive rebates or some other compensation for order flow from the exchanges (or whoever is facilitating the trades)? If that is the case, then my concern is that HFT could be sitting behind it, and my limit orders will be systematically scalped.
What triggers my question is the fact that most platforms like Robinhood are only able to offer brokerage-free trades in the US because they get rebates from HFT, so I am interested to know whether Xinja has found an alternative way to offer brokerage-free trades without needing to rely on HFT in the background.