Receiving payment for order flow is a common practice among online brokers. In fact, odds are that your brokerage makes money from many of the stock and option trades you make.
We break down payment for order flow top to bottom in our best brokers for active trading review. In a nutshell, it is legal practice and the rips the brokerages earn from the order flow goes right back into the business providing clients with trade tools, research, customer service, etc. For those traders who want to control their own commission costs, selecting a broker that offers market rebates for adding liquidity is the way to go. This is not for the faint of heart though, profitably trading strictly using limit orders is very tricky.
A list of all the brokers that receive payment for order flow is below.
Published on Monday, June 27th, 2016 .