Hacker News new | ask | show | jobs
SEC: Brokers enticed by PFOF are making trading into a game to lure investors (cnbc.com)
5 points by jbp 1701 days ago
2 comments

Payment for order flow (PFOF) is 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 that market maker. It is a controversial practice that has been called a "kickback".

https://en.m.wikipedia.org/wiki/Payment_for_order_flow