Payment for Order Flow (PFOF) is a practice where brokerage firms receive compensation from third parties for directing client orders to specific market makers or exchanges. This became a common way for brokerages to earn revenue while providing a zero commission investing experience. As the saying goes, "if you're not paying for the product, then you are the product."
Illuminate does not accept Payment for Order Flow, nor does Illuminate receive interest payments for the cash in your account. We charge one flat fee of $3.99 and you do not pay for anything else. We cover all the commissions, integration, data and any other fees associated with providing you with the best sustainable investing experience.
We do not charge you additional transaction fees to buy and sell securities within your stocks and bonds portfolios. Any fund held in this type of portfolio at Illuminate will assess fund-level fees, called expense ratios, but Illuminate aims to keep these costs low, and we receive no part of these fees.