Step 1: Document Your Harm
Before filing, gather evidence: your trade confirmations, account statements, and a record of your orders and executed prices. If you believe you received inferior execution on a specific trade, compare the executed price to the National Best Bid and Offer (NBBO) at the time of execution. Your broker's Rule 605 execution quality reports, if available, may also document systematic execution quality deficiencies.
Step 2: File with the SEC
Visit SEC.gov/tcr to file an online tip, complaint, or referral. The SEC's Office of Investor Education and Advocacy handles investor complaints. For PFOF-related complaints, describe the nature of the conflict — specifically that your broker routes orders to Citadel Securities through a PFOF arrangement and that you believe this practice results in inferior execution at your expense.
Step 3: File with FINRA
You can also file a complaint with FINRA at finra.org/investors/have-problem. FINRA investigates broker-dealer violations including best execution failures. For PFOF-specific complaints, reference FINRA Rule 5310 (best execution) and your broker's disclosed order routing practices.
Step 4: File with Your State Regulator
Your state securities regulator has independent authority to investigate broker-dealer practices under state securities law. Find your state regulator at nasaa.org. Many state regulators, including Massachusetts, have taken independent enforcement action on PFOF-related violations.
Step 5: Consider the SEC Whistleblower Program
If you have original information about securities violations at Citadel Securities or related parties, the SEC's whistleblower program offers financial awards of 10-30% of sanctions exceeding $1 million. File at sec.gov/whistleblower. Whistleblower submissions are confidential.