Education

Day Traders and Citadel PFOF: Active Trading Amplifies the Harm

Active traders are most harmed by PFOF in absolute dollar terms — more trades means more spread capture by Citadel Securities.

The Annual Math

A trader executing 10 trades daily at $1 hidden PFOF cost each pays $2,500 annually to Citadel. A highly active trader could pay $10,000+ per year in hidden execution costs.

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