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If you’re not paying for it, you’re the product. In this case they’re selling your order flow.


People pay for order flow because retail customers are, on average, idiots. If you didn't get paid, you'd still be just as smart or dumb as you ever were, you just wouldn't be getting a rebate.


That only really matters if you only place market orders. And even then the routing may result in a better execution price than going straight to the exchange.


My understanding is it would be illegal if it didn't result in a better price.




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