“Payment for order flow” or “PFOF” is when brokerage firms receive compensation in exchange for routing orders for trade execution to particular market makers or exchanges (collectively, “Market Centers”). As the introducing broker for your account, Public Investing relays your orders for stocks, ETFs, and standardized options to our fully-disclosed clearing firm, Apex Clearing Corporation (“Apex Clearing”). Apex Clearing then routes your order to Market Centers for execution.
Today, Public Investing does not accept payment for order flow for equity trades made directly through the Public app or website during regular hours. While Apex Clearing may receive payment for order flow in connection with such trades, payment is not shared with Public Investing. In lieu of PFOF, Public offers customers the opportunity to leave an optional contribution to help offset the costs of maintaining a PFOF-free model on these types of equity trades.
Public does, however, accept PFOF for equities trades made during extended hours or when using Public’s application programming interface (“API”). Public Investing also receives payment for order flow when you trade options or over-the-counter securities on the Public platform.
Customers trading options on Public can enroll in our Options Order Flow Rebate Program to receive a percentage of the PFOF revenue that Public collects in the form of a “rebate” on each option trade. This Program, including rebate rates, is subject to change.
To learn more about our payment for order flow practices, you can review our SEC Rule 606 and 607 Disclosures.