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Banning Payment for Order Flow May Benefit No One

September 29, 2022


Increased regulations could result in reduced market
liquidity and a negative impact on retail traders.
The intensity of retail trading has dropped slightly since its pandemic peak – when individual investors, flush with stimulus cheques and looking for a way to spend their money amid global lockdowns, poured into the stock market. Yet, retail investors still make up a robust segment of the equity market, at times accounting for a third of all stock trading in the United States in 2021.

Retail investors have their pick of brokers, many of which offer attractive perks such as sign-up bonuses, zero trading commission and waiving custodial charges.

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