What is the order flow?

Flow Order Flow is a practice in the investment industry where large brokers defend their orders to smaller sellers because they cannot handle the volume of orders they receive themselves. Sometimes sellers pay a bonus for distributing orders, usually several hellers in each store. This is not always legal and there may be restrictions where traders can make payments for the flow of order to direct more orders in their direction. Brokers can handle a huge number of stores every day when they work with clients of different sizes and levels of interest on the market. To ensure that orders are made in time, they can be distributed to other sellers. The details are recorded by both the seller and the broker to make sure that there is a clear paper trail that follows the purchase or sale of securities and documents the price, the number of securities and other details. In the case of a dispute, this data can be consulted in order to determine the facts of the matter and afterSacching a resolution.

Orders distribution through orders flow sometimes have access to better stores, as sellers can wrap more orders on the same security and do all of them at once. When a payment for the flow of order is allowed, brokers can earn money for every transaction except for fees that they already earn for manipulating financial accounts on behalf of their clients. While individual trade may not bring too much money, in the long run these fees can be significantly added.

If the broker accepts payments for the order flow, it must be published by Clients when they register for new accounts. Information on the payment received should be provided. If you do not do so, people can undergo legal sanctions if they claim regulatory agencies such as the Securities and Stock Exchange Commission. In some regions there are concerns that payments for the flow ofBetters could compromise a broker or seller because brokers will preferentially send orders to sellers who will pay rather than select the best person to leave an order.