How do firms like Ameritrade, Schwab, Fidelity and Scottrade make a profit charging $7-$8 per trade? Easy, they cooperate with high speed traders by giving them data on their customer’s positions. Basically, retail brokers set up their customers for a profit. The model fits. Check it out.
It is open season on retail investors from all directions. Government wants you buying at the top so as to provide buyers for clients of congress who are liquidating stock. High frequency trading firms scalp any trader who places a stop order. The Federal Reserve needs the public to be buyers of stocks so the rich can borrow against their holdings.
One would think there would be loud anti high frequency trading protests by retail brokers since their clients are being butchered in the market. That would happen except that high frequency traders make it profitable for retail brokers to sell their customers down the river.

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