“Payment for order flow enables commission-free trading,” said Robinhood chief executive Vlad Tenev during Congressional testimony in February 2021 following the Gamestop debacle.

Payment for order flow is a common practice in the investing world that lets retail brokers be paid by market makers, wholesalers and others in exchange their retail clients’ orders to buy and ...

Under the practice, known as payment for order flow, stock and option specialists pay brokers to route their orders to them for execution. The practice is legal, but brokers are obligated to seek ...

Learn how payment for order flow (PFOF) affects crypto trading costs, its impact on strategies like high-frequency trading, and upcoming regulatory changes.

“Payment for order flow enables commission-free trading,” said Robinhood chief executive Vlad Tenev during Congressional testimony in February 2021 following the Gamestop debacle.

How Does Payment for Order Flow Work? The more order flow the market makers receive from the likes of Robinhood, the more profit they can generate from the bid-ask spread.