Washington DC Investor Alert

Citadel Securities and Washington DC Investors: Payment for Order Flow in Your City

Retail investors in Washington DC, Washington DC — like investors across the country — route their stock orders to Citadel Securities through payment for order flow arrangements at major discount brokers. DC's government employee and contractor population creates a significant and politically informed retail investor base.

Washington DC's Retail Investor Landscape

Washington DC is Mid-Atlantic-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 Washington DC Investors

When a Washington DC 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 Washington DC investor: a slightly worse execution price compared to what a competitive exchange-routed order would achieve.

What Washington DC 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
File a complaint with the Washington DC securities regulator
Contact the Washington DC Attorney General

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