In fee for order circulate, a retail dealer sends buyer orders to a market maker resembling Citadel Securities or Virtu Monetary Inc. These corporations match purchase and promote orders at costs throughout the quoted market spreads. So if a inventory is bid at $49.95 and supplied at $50.05, the market maker may fill a promote order at $49.97, a purchase order at $50.03 and make a revenue of six cents. (These are hypothetical numbers.) Each the retail purchaser and retail vendor get higher costs than market orders despatched to an alternate. The market maker then sends fee, say two cents per share, to the retail dealer. This permits retail brokers to cost zero commissions.
https://www.washingtonpost.com/enterprise/what-gary-gensler-really-meant-withhis-order-flow-remarks/2021/09/02/a5917b20-0bd4-11ec-a7c8-61bb7b3bf628_story.html?utm_source=rss&utm_medium=referral&utm_campaign=wp_business | What Gary Gensler Actually Meant With His Order Movement Remarks