by BIRBIGD99
Recently I’ve become frustrated with the quality of my option order fills on TD Ameritrade account, so I decided to investigate how much of a kickback do brokerages get for option order fills. In comparing these reports, I have deducted the following summary:
Stocks
- Interactive Brokers: Pays for order fills and may receive volume discounts
- Fidelity: Does not receive payment for order flow
- Charles Schwab: Gets paid approx $0.07 / 100 shares of stock
- TD Ameritrade: Gets paid approx $0.12 / 100 shares of stock
- Tastyworks: Gets paid approx $0.15 / 100 shares of stock
- E*Trade: Gets paid approx $0.18 / 100 shares of stock
- Robinhood: Gets paid approx $0.37 / 100 shares of stock
Options
- Interactive Brokers: Pays for order fills and may receive volume discounts
- Fidelity: Gets paid approx $0.17 / 1 option contract
- Charles Schwab: Gets paid approx $0.38 / 1 options contract
- E*Trade: Gets paid approx $0.47 / 1 options contract
- Tastyworks: Gets paid approx $0.50 / 1 options contract
- Robinhood: Gets paid approx $0.62 / 1 options contract
- TD Ameritrade: Gets paid approx $0.75 / 1 options contract
I’m not sure if these kickbacks translate to order fill price improvements, anyways if my reasoning is correct, would this mean that IKBR / Fidelity would have better order fills and Robinhood would have the worst at stock order fills and TD Ameritrade for options?
Disclaimer: This content does not necessarily represent the views of IWB.