Payment for order flow (PFOF)
Payments a broker receives from a trading venue for routing client orders there. Banned in the EU since July 2026.
In short
As of 8 October 2026Payment for order flow means a broker receives a commission from a trading venue for routing client orders there. It enabled cheap trades at neobrokers but created a conflict of interest. The EU banned PFOF, and in Germany the ban applies since 1 July 2026. Providers now earn more through spreads and fees.
With payment for order flow, a broker routes your order to a particular trading venue and receives a commission from it. That is how many neobrokers could offer trades for 1 euro or with no order fee at all.
Critics saw a conflict of interest: the broker might choose the venue that pays it most, not the one with the best price for you. The EU therefore banned PFOF, and in Germany the ban applies since 1 July 2026. Providers now use several venues or their own and earn more through spreads and fees.
Example: a venue used to pay a broker a few cents to euros per order. Today, when comparing brokers, the total price of fee plus spread matters even more.
Sources
As of 8 October 2026 · Educational content, not investment or tax advice.