Payment for order flow is a common practice in the investing world that lets retail brokers be paid by market makers, wholesalers and others in exchange their retail clients’ orders to buy and sell ...
Payment for order flow (where market makers pay brokers to route orders for execution) and the duty of best execution (which requires a broker to seek the most favorable terms reasonably available for ...
PFOF allows brokers to offer commission-free trades by routing orders to market makers. Investors often receive better prices than the NBBO via market maker payments. Critics argue PFOF may prevent ...