Who executes your orders brokers?

<p id="isPasted">When an investor places a trade online or over the phone, the order goes to a broker. The size and availability of the order determine which path is the best way for it to be executed:</p><ul><li>Order to the floor: For stocks trading on exchanges such as the New York Stock Exchange (NYSE), the broker can direct the order to the floor of the exchange or a regional exchange. Regional exchanges may pay a fee for the privilege to execute a broker's order, known as payment for order flow.</li><li>Third market maker: For stocks on an exchange, the brokerage can direct the order to a third market maker. A third market maker is likely to receive the order if they entice the broker with an incentive to direct the order to them or if the broker is not a member firm of the exchange.</li><li>Internalization: Internalization occurs when the broker decides to fill the order from the inventory of stocks the brokerage firm owns and quickly executes the transaction. The broker's firm makes additional money on the spread.</li><li>Electronic Communications Network: ECNs automatically match buy and sell orders. These systems are used for limit orders because the ECN can match prices quickly.</li><li>OTC Market: For over-the-counter (OTC) markets such as those under the OTC Markets Group, a broker can direct a trade to the market maker in charge of the stock. This is usually timely, and brokers make additional money by sending orders to certain market makers.</li></ul>