2 ms·

https://www.protocol.com/fintech/payment-for-order-flow-explained https://www.protocol.com/fintech/payment-for-order-flow-expl... https://www.npr.org/2014/04/0

https://www.protocol.com/fintech/payment-for-order-flow-explained https://www.protocol.com/fintech/payment-for-order-flow-expl... https://www.npr.org/2014/04/01/297686724/on-a-rigged-wall-street-milliseconds-make-all-the-difference https://www.npr.org/2014/04/01/297686724/on-a-rigged-wall-st... PFOF and HFT mean that no matter how much you win, the exchanges and HFTs will always win more.

richiebful1 4y ago
Payment for order flow is what underpins commission-free trading. Say what you will, but as a long-term investor, I'm always trying to minimize fees and commissions. It's extremely hard to win as a small-money day trader, so I won't play that game.
MrMan 4y ago
This gives you lower fill prices stop worrying about things extraneous to your investing bracket. You should worry about allocating long term to sensible pieces of the pie chart and minimize churn.
quickthrowman 4y ago
HFT has reduced spreads of some equities to a penny, all market participants benefit from increased liquidity. Also, Citadel is buying retail order flow because they’re reasonably certain they can capture the spread and not get run over by an institutional trader with more information than the market maker. They aren’t frontrunning your 20 share order because you aren’t going to move the market by purchasing 20 shares. Zero commissions and tight bid/ask spreads are better for an individual than no PFOF and $5/trade transaction fees with 25-50 bps bid/ask spreads.
positr0n 4y ago
Both PFOF and HFT are good for the little guy and neutral to negative for the big traders. https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone... https://www.chrisstucchio.com/blog/2012/hft_apology.html https://www.chrisstucchio.com/blog/2012/hft_apology.html

2 ms·

https://www.protocol.com/fintech/payment-for-order-flow-explained https://www.protocol.com/fintech/payment-for-order-flow-expl... https://www.npr.org/2014/04/0

by jimbob45 4y ago

richiebful1 4y ago
Payment for order flow is what underpins commission-free trading. Say what you will, but as a long-term investor, I'm always trying to minimize fees and commissions. It's extremely hard to win as a small-money day trader, so I won't play that game.
MrMan 4y ago
This gives you lower fill prices stop worrying about things extraneous to your investing bracket. You should worry about allocating long term to sensible pieces of the pie chart and minimize churn.
quickthrowman 4y ago
HFT has reduced spreads of some equities to a penny, all market participants benefit from increased liquidity. Also, Citadel is buying retail order flow because they’re reasonably certain they can capture the spread and not get run over by an institutional trader with more information than the market maker. They aren’t frontrunning your 20 share order because you aren’t going to move the market by purchasing 20 shares. Zero commissions and tight bid/ask spreads are better for an individual than no PFOF and $5/trade transaction fees with 25-50 bps bid/ask spreads.
positr0n 4y ago
Both PFOF and HFT are good for the little guy and neutral to negative for the big traders. https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone... https://www.chrisstucchio.com/blog/2012/hft_apology.html https://www.chrisstucchio.com/blog/2012/hft_apology.html