Does Zerodha use Payment for order flow?

[kaapro9]

Does Zerodha sell its customers orders to high-frequency trading firms, or market makers rather than to exchanges.

[Kshiteesh_Saralaya]

Hey @kaapro9

There’s no concept of sale of order flow in India. All orders placed through trading members is directly placed on the exchange. Check out this post for more info -

Retail traders and investors watch out - Are brokers like Zerodha counter trading?

People promote conspiracy theories to generally find a reason to blame for own losses. I have explained this before, can’t find the link. Firstly unlike other exchanges, all orders are first placed on the exchange. There aren’t dark pools etc in India unlike the US. Once order is on the exchange, anyone can fill it. There are high frequency trading companies who fill orders within micro seconds from when orders are placed on the exchange. We do no high frequency trades. If a broker is counter…

You can also verify your trades made on the exchange trade verification module. Click here to know more.

[p699]

@Kshiteesh_Saralaya So this means there are no dark pools in India ?

[Kshiteesh_Saralaya]

Hey @p699

That’s right, there’s no concept of dark pools in India. Orders placed with any trading member will be directly sent to the exchange.