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.

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. [1]

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

Jul 15, 2025 · 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 has been controversial, but …

Jun 13, 2023 · Payment for order flow (PFOF) refers to a practice where a stock broker receives compensation for routing an order to a particular market maker. In other words, it means your broker …

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 …

Feb 26, 2025 · Payment for order flow (PFOF) is compensation received by a broker in exchange for routing customer orders to a market maker.

Since the broker gets paid for the order it can afford to charge zero commissions. In this sense the customer is not disadvantaged. Since most retail brokers sell their orders to market makers, nearly …

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 brokerage firm sends...

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.