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Options boom for Robinhood sets up debate on payment for order flow

High-speed trading firms are paying brokers billions of dollars a year to execute options orders, leading them to promote the risky trades whose popularity has boomed among small investors.

The practice, called payment for order flow, has made options a cash cow for brokerages such as Robinhood and TD Ameritrade. They can make twice as much or more from selling customers’ options orders as they do from selling order flow for stocks.

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