And Interactive Brokers primarily uses its own order routing system, but it still occasionally earns PFOF from over-the-counter market makers for certain stock orders. Here's a look at which investing apps and brokerages accept payment for order flow.Īs shown above, some investment apps that receive PFOF include E*TRADE, Webull, Robinhood, Charles Schwab, and Ally Invest.

Several other investment apps and online brokerages utilize market makers and other third-party sources for order execution. Robinhood isn't the only brokerage that accepts PFOF. (The brokerage makes money either way.) Which apps accept payment for order flow?

Using PFOF can often result in faster trade execution and improved prices, but it doesn't always result in the best price for your order - which is why some view it as a conflict of interest. Payment for order flow is a fee arrangement in which online brokerages and investment apps receive compensation for directing your stock and option orders to third parties. Gamestop's stock prices hit record highs, due to members of a Reddit forum who worked together to drive up the stock's value.īut the pause on trades wasn't the only reason the investment apps were in hot water the Gamestop incident shined a renewed light on payment for order flow (PFOF), a compensation arrangement used by Robinhood and other apps. Robinhood and several other investing apps recently came under fire for temporarily halting trades of Gamestop (GME) and other stocks.

Payment to order flow