PFOF (deep)
MarketsDefinition
Payment for Order Flow. Brokers route customer orders to wholesale market makers in exchange for per-share rebates. Citadel Securities + Virtu pay the bulk of US retail PFOF.
Critics argue customers get marginally worse fills. Defenders point to better-than-NBBO execution stats (verified by Rule 605 reports). Banned in UK, Canada; allowed in US with disclosure rules.
Critics argue customers get marginally worse fills. Defenders point to better-than-NBBO execution stats (verified by Rule 605 reports). Banned in UK, Canada; allowed in US with disclosure rules.