Payment For Order Flow & The Fleecing Of The Retail Investor

by Lance Roberts

The fleecing of retail investors continues as “payment for order flow” expands.

Payment for order flow (PFOF) is not new. Previously, in a less connected world of instantaneous data flows, PFOF was minimal and non-invasive. Today, with high-frequency trading, dark pools, and algorithms running amok, retail traders are fodder for Wall Street profits.

Some Background

In financial markets, PFOF refers to compensation a broker receives third parties to influence how the broker routes client orders for fulfillment.

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