Investment professionals include online investment accounts, mutual fund managers and financial advisors. You are your investment professional's client.
A coalition for change was formed in 2012.
Among them were investment professionals representing millions of Americans.
The coalition built IEX, a marketplace built for investors, by investors. In a shift for the industry, IEX has no broker ownership. IEX is an example of investor-driven change on Wall Street.
IEX supports transparency by publishing its operating rules: an unprecedented event. This is called Form ATS and is publicly available on the IEX website. IEX publishes monthly operating metrics in an ongoing committment to transparency.
Michael Lewis profiled IEX in his new book Flash Boys.
But the work is far from over.
IEX created IAmAnInvestor.org to empower investors and to help educate the public on how the markets work.
I Am An Investor is dedicated to raising awareness of innovators and organizations championing investor empowerment.
Understand how brokers trade for you.
The U.S. Securities and Exchange Commission (SEC) summarizes this process. What Every Investor Should Know
Many brokers sell your orders to marketplaces or middlemen, commonly referred to as market makers. This practice is called Payment For Order Flow (PFOF) and it generates incremental revenue on top of the commissions you pay to brokers.
This practice is further described by the SEC here: Payment for Order Flow.
Your online brokers publish quarterly reports that disclose their PFOF arrangements, called Rule 606 Reports. Search online for your broker's Rule 606 Reports to see if your broker engages in PFOF, and if so, the identity of the marketplaces or market makers paying for your order flow and the economics of their arrangement.
Instruct your investment manager or online broker where to trade.
Ask your broker how they evaluate and choose marketplaces when they trade on your behalf.
The choice is yours. You the investor have choice and say. You can dictate where your orders trade. See the letter at IEX