Payment For Order Flow

https://en.wikipedia.org/wiki/Payment_for_order_flow
Payment for order flow PFOF is the compensation that a stockbroker receives from a market maker in exchange for the broker routing its clients trades to that market maker It is a controversial practice that has been called a kickback by its critics

https://www.interactivebrokers.com/en/trading/...
Payment for Order Flow Interactive Brokers LLC What is payment for order flow Many brokers sell their clients orders to market makers who pay the brokers for these orders The market makers trade with the orders by taking the other side of the trade and thus establishing an execution price

https://www.britannica.com/money/payment-for-order...
Payment for order flow PFOF is essentially a rebate from market makers to brokerage firms for routing retail buy or sell orders to them PFOF has helped drive down transaction costs to zero among top brokers but the practice remains controversial What is payment for order flow

https://www.cfainstitute.org/-/media/documents/...
PAYMENT FOR ORDER FLOW Internalisation Retail Trading Trade Through Protection and Implications for Market Structure Summary Payment for order flow PFOF is the practice of wholesale market makers paying brokers typically retail brokers for

https://www.forbes.com/advisor/investing/payment-for-order-flow
The SEC is investigating a handful of potential reforms that could change or even eliminate payment for order flow What form those new rules take and how popular they prove with retail

https://www.sofi.com/learn/content/payment-for-order-flow
Payment for order flow PFOF refers to the practice of retail brokerages routing customer orders to market makers usually for a small fee Payment for order flow is controversial but it s become a key part of financial markets when it comes to stock and options trading today

https://public.com/learn/payment-for-order-flow-pfof
Key takeaways Payment for order flow is when brokerage firms receive compensation in exchange for routing orders with market makers These market makers make money on the difference between the bid price and ask price which means investors may not be getting the best deal possible

https://smartasset.com/investing/payment-for-order-flow
Bottom Line Payment for order flow has become a major contributor of revenue supporting retail investment brokers The practice allows brokers to be paid for sending their clients orders to buy and sell securities to specific entities This helps make up for declining commissions and allows for low and zero commission investing

https://www.thebalancemoney.com/payment-for-order-flow-5191754
Payment for order flow PFOF are fees that broker dealers receive for placing trades with market makers and electronic communication networks who then execute the trades Definition and Examples of Payment for Order Flow