4 ms·

PFOF is a deal breaker. If everyone but Fidelity is doing it thats a huge selling point for Fidelity. Go against the grain and do what is right for your custome

by dzink 2y ago

PFOF is a deal breaker. If everyone but Fidelity is doing it thats a huge selling point for Fidelity. Go against the grain and do what is right for your customer if you want to have the net worth of people who care about their money and thus more trust than Robinhood.

ahtihn 2y ago
Why would you care about PFOF as a retail investor? You're benefiting from it.
- dzink 2y ago
  No you are not. Your orders are not sent to the best exchange execution possible but to market makers who pay kickbacks to your broker and give you a far worse deal with every single transaction. The cost of poor execution is much higher than a 2 dollar commission (which is what Fidelity shows). It also reduces market transparency.
  - ahtihn 2y ago
    > Your orders are not sent to the best exchange execution possible Look up NBBO, that would be illegal. You're getting better execution as a retail trader thanks to PFOF.
    - dzink 2y ago
      I have tried several PFOF and regular brokers. The spreads end execution of PFOF where far worse.
dmoy 2y ago
IBKR, vanguard, and I think even Bank of America also don't do PFOF.