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What Is Payment for Order Flow (PFOF)?

By Adam LevyUpdated Feb 26, 2025 at 3:26 PM

Key Points

  • PFOF allows brokers to offer commission-free trades by routing orders to market makers.
  • Investors often receive better prices than the NBBO via market maker payments.
  • Critics argue PFOF may prevent customers from getting the best possible stock prices.

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