abstract:In financial markets payment for order flow refers to the compensation that a broker receives, not from its client, but from a third party that wants to influence how the broker routes client orders.http://www.
The main difference being that the more traditional model, featuring pro-rata allocation and collection of paymentfororderflow, is more geared towards one facet of the investing community, comprised in large part by retail investors who are using options limit orders and other very simple strategies.