Markets

Payment for order flow is compensation online brokers receive when third parties execute orders for them — here’s how it affects you

Payment for order flow (PFOF) is the compensation brokerages earn by having third-party firms execute client orders. Payment for order flow can impact an investor’s final per-share cost, especially if they trade actively. Though PFOF can affect costs, it doesn’t jeopardize your transactions or account security. Visit Insider’s Investing Reference […]
Payment for order flow is compensation online brokers receive when third parties execute orders for them — here’s how it affects you