About: Payment for order flow

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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. Policymakers supportive of PFOF and several people in finance who have a favorable view of the practice have defended it for helping develop new investment apps, low-cost trading, and more efficient execution.

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rdfs:label	Payment for order flow (en)
rdfs:comment	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. Policymakers supportive of PFOF and several people in finance who have a favorable view of the practice have defended it for helping develop new investment apps, low-cost trading, and more efficient execution. (en)
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dcterms:subject	Agency law Business models Securities (finance) Financial markets
Wikipage page ID	22237355 (xsd:integer)
Wikipage revision ID	1124073473 (xsd:integer)
Link from a Wikipage to another Wikipage	Canada Carl Levin Robinhood (company) Robinhood Markets National Market System Meme stock Bernard Madoff Bernie Madoff Best execution United Kingdom University of California, Berkeley University of California, Davis Vincent Viola Conflict of interest Stockbroker Citadel LLC GameStop short squeeze Gary Gensler The Vanguard Group Tradestation Commission (remuneration) Madoff investment scandal Short squeeze Agency law U.S. Securities and Exchange Commission Webull Ally Financial Business models E-Trade Euronext Exchange (organized market) Fidelity Investments Kickback (bribery) United States Senate Homeland Security Permanent Subcommittee on Investigations Securities (finance) Adverse selection Financial markets Charles Schwab Corporation Bid–ask spread Susquehanna International Group TD Ameritrade Interactive Brokers Merrill Edge New York Stock Exchange Market maker Market liquidity Bid-ask spread University of California at Irvine Bribe Price improvement dbr:Public.com
Link from a Wikipage to an external page	https://www.bloomberg.com/news/articles/2022-09-22/sec-poised-to-let-wall-street-keep-payment-for-order-flow-deals%3F
sameAs	Payment for order flow Payment for order flow Payment for order flow Payment for order flow
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thumbnail	wiki-commons:Special:FilePath/TechCrunch_Disrupt_NY_2016_-_Day_2_(26902081436)_(2).jpg?width=300
has abstract	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. Policymakers supportive of PFOF and several people in finance who have a favorable view of the practice have defended it for helping develop new investment apps, low-cost trading, and more efficient execution. In general, market makers like Citadel LLC, Virtu Financial, and Susquehanna International Group are willing to pay brokers for the right to fulfill small retail orders. The market maker profits from the bid-ask spread and rebates a portion of this profit to the routing broker as PFOF. Another fraction of a penny per share may be routed back to the consumer as price improvement. Brokers in the United States that accept payment for order flow include Robinhood, E-Trade, Ally Financial, Webull, Tradestation, The Vanguard Group, Charles Schwab Corporation, and TD Ameritrade, while brokers that do not receive payment for order flow include Interactive Brokers (pro accounts that are charged commissions), Merrill Edge, Fidelity Investments, and . In the United States, accepting PFOF is allowed only if no other exchange is quoting a better price on the National Market System. The broker must disclose to the client that it accepts PFOF. Transactions must be executed at the best execution, which could mean the best price available or the speediest execution available. PFOF is not allowed in Canada, so Canadian brokers charge commissions. It is also banned in the United Kingdom. According to Euronext, European authorities have regulated payment for order flow, and the practice is allowed in a number of national jurisdictions across Europe. (en)
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is Link from a Wikipage to another Wikipage of	Robinhood Markets Bernie Madoff Day trading Degiro Internalization Citadel Securities Electronic communication network GameStop short squeeze Gaming Wall Street Gary Gensler The Problem with Jon Stewart M1 Finance Madoff investment scandal Dark pool E-Trade Kenneth C. Griffin TD Ameritrade IEX

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