Fidelity Investments has quietly started accepting payment for order flow on equity trades, abandoning the stance that once set it apart from rivals. The firm now routes customer orders to wholesale market makers like Citadel Securities in exchange for compensation of up to $0.0008 per share for marketable orders and $0.003 per share for non-marketable orders. Unconfirmed estimates suggest this practice generates approximately $10 million per month in revenue. The change aligns Fidelity with industry standards established since the zero-commission trading wave of 2019, as competitors like Schwab, E*Trade and Robinhood had already been accepting PFOF on stock trades. The practice remains legal in the United States, and retail investors are advised to monitor Rule 606 reports to assess the impact on execution quality over time.
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