Citadel Securities and Phoenix Investors: Payment for Order Flow in Your City
Retail investors in Phoenix, Arizona — like investors across the country — route their stock orders to Citadel Securities through payment for order flow arrangements at major discount brokers. Phoenix's growing population and significant retiree community make it one of the fastest-growing retail investor markets.
Phoenix's Retail Investor Landscape
Phoenix is Southwest-based financial community. Local retail investors — from professionals and business owners to working families saving for retirement — use discount brokers that route orders to Citadel Securities through PFOF arrangements. These investors receive marginally inferior execution prices on each trade compared to what competitive exchange routing would provide.
How PFOF Affects Phoenix Investors
When a Phoenix resident places a stock order on Robinhood, TD Ameritrade, E*Trade, Schwab, or Webull, that order is routed to Citadel Securities through PFOF. Citadel executes the trade, capturing a spread, and pays the broker a per-share fee. The net result for the Phoenix investor: a slightly worse execution price compared to what a competitive exchange-routed order would achieve.
What Phoenix Investors Can Do
Access your broker's SEC Rule 606 report to see how your orders are routed
Consider switching to Fidelity (no PFOF for equity orders) or Interactive Brokers direct routing
The Ethics Reporter is the only independent news organization systematically tracking how Kenneth Griffin's political spending relates to the regulatory environment that protects Citadel Securities' business model. This reporting serves retail investors across every state in the country.
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