Re:Uber said to use “sophisticated” software to defraud driv...
by notpeter on Thursday April 06, 2017 @05:01PM
(#14054558)
This is actually how market makers operate. They buy/sell your stock, but the exchange also gives them a rebate on their fees. So selling your shares at $15.25 + fees (directly passed to you) but the exchange gives them a rebate of $0.02 per share. Naturally now your broker is incentivized to funnel transactions through whomever offers the best rebate, not the necessarily the best price.
Source: http://www.investopedia.com/articles/active-trading/042414/w...