Payment for order flow

Payment for order flow (PFOF) refers to the compensation, as much as 1 penny per share, that a stockbroker receives from a market maker in exchange for the broker routing its clients' trades to such market maker. It is a controversial practice that has been called a "kickback". PFOF is not allowed in Canada and therefore Canadian brokers charge commissions. It is also banned in the United Kingdom.

Payment for order flow

Payment for order flow (PFOF) refers to the compensation, as much as 1 penny per share, that a stockbroker receives from a market maker in exchange for the broker routing its clients' trades to such market maker. It is a controversial practice that has been called a "kickback". PFOF is not allowed in Canada and therefore Canadian brokers charge commissions. It is also banned in the United Kingdom.