&gt; This is simply false. For example, IB describes the mechanism here<p>Well to be fair, i never mentioned IB, you did.  I&#x27;m correct on this issue.  Let&#x27;s leave IB out of this as what you describe does happen but is a completely separate issue from selling order flow.<p>First off Schwab has already publicly admitted they sell their order flow.  I&#x27;ve talked to 4 Canadian banks who do the same.<p>The internalizers who buy the flow are then allowed to either fill the order or pass it along, to the market, they get to see the order before it gets to the market, this is the free look i was talking about.<p>You may not be aware this happens but it does. I&#x27;ve literally talked to people on both sides of this who freely admit what they do.  its currently legal, but I don&#x27;t think it will be for much longer.