Trade Republic and Payment for Order Flow (PFOF)

For whoever has still not managed to understand where ESMA is going with PFOF, yet another speech today:

“While the zero-commission business models may attract consumers, they also prompt investor protection concerns, as firms often receive “payment for order flow” compensating for the lack of direct client commissions.”

https://www.esma.europa.eu/document/opening-statement-econ-hearing-14-october-2021

1 Like

I actually think the opposite is true, people are trying to move away from sensible metrics like % AUA to user-based metrics under the belief that customers are willing to spend disproportionate amounts to justify lofty valuations.

1 Like