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BertAnsink t1_j9alr6o wrote

On average retail looses money daytrading.

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So literally all the broker has to do is take the other side of the trade for all their clients and they would automatically make money if that was their objective.

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People talk about PFOF as a business model for brokers, however there is another potentially more powerful revenue stream, they can sell data concerning their client's positioning. When trading into a lit market, ie through regular channels there is companies that can compile this data for themselves, but one of the issues with PFOF is that the trades never reach the exchange, ie only the MM that handles the orderflow know's the positioning of the clients.

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