What is Payment for Order Flow (PFOF)?
Payment for order flow is a process where trades are routed to a large financial institution. For example, if you entered an order to buy $5 of Apple stock, Stash would group your order together with others that are buying shares of Apple for the financial institution to execute. As a result, you potentially benefit from improved liquidity which may improve the price of your trade. Stash may receive a small compensation for orders to be routed to the financial institution.
Does this impact me?
Stash has not changed how we route your orders and you will continue to not be charged for order executions. Stash will continue to monitor the quality of order executions, and decisions are regularly reviewed to ensure the duty of best execution of your trades is met.
You can find more information on Payment for Order Flow here.
The use of Stash Capital as an introducing broker-dealer creates certain conflicts of interest for Stash Investments. Stash Investments receives additional revenue in connection with Stash Investments’ client accounts held at apex. This additional revenue is created by fees which apply to your account and account activities. Additional information regarding these fees can be found in the Stash Investments Advisory Agreement at https://cdn.stash.com/disclosures/StashInvest_Advisory_Agreement.pdf. Stash Capital will share in revenue earned on securities lending, FDIC sweep on credit balances, PFOF, and other ancillary fees generated by Apex. Stash Investments has an incentive to recommend securities that could be lent for this reason.
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