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Last week, I examined Robinhood's most recent 606 report to get a sense of its routing activity. As most in the industry know, they're not the only firm making $ from payment for order flow. TD, Schwab, and ETrade appear to have brought in more than $300m from PFOF in Q1. Thread.
In total, trading firms paid TDAmeritrade over $200 million through its brokerage and clearing divisions.
Payments for TDAmeritrade, specifically, totaled ~$103.2 million.
Payments for TDAmeritrade, specifically, totaled ~$103.2 million.
Meanwhile, E*Trade brought in $79.5 million from PFOF during the first quarter.
Interestingly, Morgan Stanley accounted for 17% of its payments. At the beginning of the year, MS agreed to purchase E*Trade in a $13bn deal
Interestingly, Morgan Stanley accounted for 17% of its payments. At the beginning of the year, MS agreed to purchase E*Trade in a $13bn deal
Charles Schwab — which has its own deal to acquire TDAmeritrade in the works — raked in $53 million from PFOF in Q1.
Not just Robinhood: These three brokers combined made more than $300 million from big trading firms in Q1 https://www.theblockcrypto.com/post/68875/not-just-robinhood-brokers-combined-big-traders
PFOF seems to be constantly vilified as big traders front-running orders.
So, in this piece, I take a moment to shed light on the benefits, specifically price improvement. The price improvement customers see from PFOF far exceeds what HFTs pay to retail brokers for their flow
So, in this piece, I take a moment to shed light on the benefits, specifically price improvement. The price improvement customers see from PFOF far exceeds what HFTs pay to retail brokers for their flow
