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Literally every retail broker sells order flow to HFTs for them to execute. What HFTs do with that afterward is up to the HFTs. Yes, they front run. Yes, they t
by zelly 7y ago
Literally every retail broker sells order flow to HFTs for them to execute. What HFTs do with that afterward is up to the HFTs. Yes, they front run. Yes, they trade against you. Why else would they pay for the order flow?
- usmannk 7y agoThat's not at all what front running is. But to let patio11 answer your question: payment for order flow is useful in many ways. See: https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...