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 the ...
Robinhood’s zero-commission trading model came under scrutiny earlier this year during the WallStreetBets-fueled trading frenzy in GameStop Corp. (NYSE:GME) and other so-called “meme” stocks. The zero ...
During the House Financial Services Committee's Thursday hearing on the recent GameStop stock frenzy, there was talk of a practice known as "payment for order flow" (PFOF). To anyone not fluent in the ...
If you're a curious observer of Robinhood Markets' (NASDAQ: HOOD) recent initial public offering, you've likely heard the term "payment for order flow." Market pundits continue to debate whether it ...
Senator Pat Toomey introduced a bill to limit the SEC's ability to ban payment for order flow on Thursday. PFOF has been crucial to brokerage firms like Robinhood, as it enables commission-free ...