Comparing payment for order flow routing reports (606a) of different brokerages

by BIRBIGD99

Robinhood

TD Ameritrade

E*Trade

Fidelity

Tastyworks

Charles Schwab

Interactive Brokers

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
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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
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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.

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