SEC: Brokers enticed by PFOF are making trading into a game to lure investors(cnbc.com)

5 pointsby jbp5 anni fa2 comments

SEC: Brokers enticed by PFOF are making trading into a game to lure investors

https://www.cnbc.com/2021/10/18/sec-says-brokers-enticed-by-payment-for-order-flow-are-making-trading-into-a-game-to-lure-investors.html

2 comments

jbp5 anni fa

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

WalterGR5 anni fa

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