European Brokerage · glossary
A fee, commission or other benefit that a firm receives from someone other than its client. MiFID II allows one only if it improves the service to the client and is disclosed. Thalvia refuses them all, except a minor non-monetary benefit such as training about a product. Clause 8.3 · Chapter 6 · see Payment for order flow
Explained in Chapter 6, Fees, Inducements and the Ban on Payment for Order Flow, of European Brokerage.
An inducement is a fee, commission or other benefit that a firm receives from someone other than its client. The danger is simple. A broker paid by an ETF provider has a reason to push that provider’s funds, whether or not they suit the client. So Article 24(9) of MiFID II allows an inducement only if it improves the service to the client and is disclosed.Read Chapter 6, Fees, Inducements and the Ban on Payment for Order Flow →
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