What is payment for order flow?Payment for Order Flow

What a market maker pays a broker for sending it customer orders to fill. It's a revenue source for many “zero-commission” brokers, and regulators watch whether customers still get the best price.

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US Stock Rules
The Costs Behind Zero Commission, and Dividend Withholding Tax
Zero commission isn't zero cost: there's still the bid-ask spread and small regulatory fees on sales; dividends to non-US residents are withheld at 30% by default, reduced under a tax treaty once you file a W-8BEN.

Related terms

spread
commission
minimum commission
regulatory fees
withholding tax
Form W-8BEN

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