Skip to content
  • Home
  • About
  • Contact
  • Page
  • ​Master SEO Tactics
  • Top 9 Finance News Websites Ranking
wikifx

wikifx

  • Home
  • About
  • Contact
  • Page
  • ​Master SEO Tactics
  • Top 9 Finance News Websites Ranking
  • Toggle search form
  • SBI SECURITIES expands business relationship with Broadridge forex news
  • Richard Cooper buys 61,000 shares in Equals forex news
  • Investors accuse Robinhood CEO Vlad Tenev of unjust enrichment forex news
  • CMC Markets shares down 27% after FY2022 revenue forecast cut forex news
  • CME Group to launch two new dedicated cryptocurrency market data channels forex news
  • FxPro and McLaren F1 team announce continuation of their partnership forex news
  • Santander UK appoints Nicky Morgan to Board forex news
  • eToro adds 90 new assets to its lineup of investment instruments forex news

Interactive Brokers running anti-PFOF TV ads

Posted on 2021-12-21 By admin No Comments on Interactive Brokers running anti-PFOF TV ads

US based online broker Interactive Brokers (NASDAQ:IBKR) has been running a series of television ads, touting its lack of use of payment-for-order-flow (PFOF) in handling client orders. The ads seem to be a response to Robinhood (NASDAQ:HOOD), which burst onto the scene in recent years and has taken a lot of business away from “traditional” online brokers with its commission-free trading model.

Robinhood can offer commission-free trading, of course, because it makes its money (primarily) from selling client orders to third party market making firms – or payment-for-order-flow. The market makers trade with the orders by taking the other side of the trade, thus establishing an execution price.

Since according to IBKR most retail brokers sell their orders to market makers, nearly 50% of orders are executed away from the exchanges. As a result, liquidity at the exchanges has diminished and it is likely that the NBBO (i.e. national best bid / offer) is now wider than it would be if all orders went to the exchanges. So although market makers do give a slight improvement over the NBBO, if they did not divert orders from the exchanges it is likely the NBBO would be narrower.

By contrast, professional/institutional traders do not want to show their orders at the exchanges for fear of driving the price away from themselves. Instead, they prefer to route these orders into Dark Pools. When brokers who do not sell their orders (but want to execute them at the best possible price), send the orders into dark pools, they often get an execution well inside, often even in the middle of, the NBBO.

IBKR is not the only firm trying to sell both regulators in the US (payment-for-order-flow is already banned in many other jurisdictions including Canada, the EU, the UK, and Australia) as well as retail clients that they are better off avoiding PFOF firms. We recently reported that another Robinhood neobroker competitor, Public.com, recently came out with trade execution data showing that it delivers better execution quality on average to customers than peer firms that accept PFOF from market makers.

The latest IBKR ad regarding PFOF follows:

forex news Tags:forex-news

Post navigation

Previous Post: Brian Brooks joins Voyager Digital’s Board of Directors
Next Post: Visa closes acquisition of Currencycloud

Related Posts

  • Broadridge acquires ECS assets from Jordan & Jordan forex news
  • CFTC seeks $5.8M in restitution from Long Leaf Trading Group forex news
  • City Index offers clients to trade its Remote Economy index forex news
  • ASIC approves 776 Australian Financial Services licences in 2020-21 forex news
  • FSCS declares nine firms in default in June and July 2021 forex news
  • USGFX bankruptcy final hearing to be held October 28-29 forex news

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • EUR/USD Holds Near 1.05 as Fed, ECB Policies Shape Market Sentiment
  • Gold Prices Hold Steady Amid Global Economic Uncertainty
  • Australian Dollar: How RBA Policies, Commodity Prices, and Global Tensions Are Shaping the AUD’s Market Performance
  • EUR/USD: Understanding the Currency Pair’s Trends
  • USD Under Pressure: Navigating Economic Data and Global Uncertainties

TAG

Axiory Review 2022 B2B B2Broker News Basic Forex Knowledge broker brokers brokers in the UK Brokersview Broker tools CFDs coin News cryptocurrency Cryptocurrency News Crypto News dogecoin FCA news finance forex forex-news Forex Broker Forex Brokers Forex Demo Account Forex market forex news forex scams forex time Forex trading fx fxtrader fxtrading Global Forex Gold Analysis HotForex InstaForex LiteForex Review 2022 markets work MT4 MT5 news OctaFX Review Samtrade FX South Africa trade Forex traders Trading Forex
  • BGC Partners’ Chairman Howard Lutnick confirms cancer diagnosis forex news
  • Finalto adds 32 Singapore leveraged equity CFDs to its liquidity offering forex news
  • Worldline to enable online businesses to launch their own payment method forex news
  • Refinitiv introduces USD IBOR Cash Fallbacks prototype forex news
  • Enigma Securities listed as FCA registered cryptoasset firm forex news
  • SEC goes after traders who executed thousands of “wash trades” forex news
  • Standard Chartered HK appoints Alson Ho as Head of Wealth Management forex news
  • ASIC Issues Warning about SMSFs and Crypto Investments forex news

Copyright © 2025 wikifx.

Powered by PressBook News WordPress theme