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Old 08.10.2021, 15:18
kerneltrick kerneltrick is offline
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Re: Buying ETF’s based in US while living in Switzerland - using swiss broker

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he's got it backwards. IB do not take payment for order flow, whereas Schwab do.
Sure they do, in IBKR Lite at least. Anyway it's a moot point when trading on US, Reg NMS obliges all brokers to execute you within NBBO, no matter if order was sent to exchange directly or sold to middleman for execution

Payment for order flow is not really a means to screw you up. HFTs/MMs are interested in it and happy to subsidize you because they get relatively uninformed order flow from retail randos out of it, which has nicer statistical properties. Whereas on public exchanges they routinely get matched with people with more information/influence (e.g. whales selling/buying up large positions and moving prices, placing hidden iceberg orders, etc) which is bad for business.
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