Our custodian had some comments on paying for order flow – something that has been in the headlines recently with Robinhood and Gamestop.
“From day one, SSG has never received payment for order flow. Although it may be an accepted practice at other firms, we believe that it leads to potential conflicts of interest. Today it is hard to find a brokerage firm that doesn’t receive payment for order flow. Most do, including both old and new firms that provide custodial services to RIAs. But at SSG, we have avoided producing revenue from payment for order flow, because it’s more transparent that way. It was the right policy when we started the firm, and it is further reinforced in the current environment.”
Peter Mangan
CEO, Shareholders Service Group