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LogoutThe reward and profit that a brokerage company receives for routing orders to other parties for trade execution are known as payment for order flow (PFOF). As compensation for routing the transaction to a certain market maker, the brokerage company receives a tiny payment, generally fractions of a cent per share.
Because each optionable stock might have hundreds of possible contracts, market makers dominate the options market. For options trades, payment for order flow is almost universal and typically less than $0.50 per contract traded.