Oct 3, 2025 · Learn how payment for order flow (PFOF) operates, its advantages, potential conflicts of interest, and how it affects trade execution and market liquidity.

Learn how payment for order flow (PFOF) works at brokers and how it can result in a hidden increase in your trading costs.

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 …

Jun 13, 2023 · What is payment for order flow (PFOF)? Payment for order flow (PFOF) refers to a practice where a stock broker receives compensation for routing an order to a particular …

Jul 15, 2025 · Payment for order flow (PFOF) involves brokerages routing customer orders to market makers for a fee, enabling commission-free trading. PFOF allows brokerages to offer …

What is Payment for Order Flow? Payment for order flow is when a third-party firm (usually a high-frequency trading firm) compensates a brokerage firm for first-access to their order flow. For …

Feb 26, 2025 · What is payment for order flow? Payment for order flow is the compensation brokerages receive from a market maker in exchange for sending customer orders their way.

Nov 9, 2025 · These low costs come in part from a controversial practice called payment for order flow (PFOF). While it reduces your upfront costs, research shows it might actually leave you …

Payment for order flow is the money brokerage firms make by sending trade orders to high-frequency traders or market makers. When an individual investor places a trade, the …

What it is:Payment for order flow is the compensation a brokerage firm receives for directing its customers' stock and option orders to a specific market maker or wholesaler for execution.