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".
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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
Link to SEC report: https://www.sec.gov/news/press-release/2021-212