Explainer-Robinhood makes most of its money from PFOF. What is it?

FILE PHOTO: The Robinhood App is displayed on a screen in this photo illustration January 29, 2021. REUTERS/Brendan McDermid/Illustration/File Photo

NEW YORK (Reuters) - App-based retail brokerage Robinhood Markets Inc was set to make its highly anticipated market debut on the Nasdaq on Thursday.

The brokerage, known for helping pioneer commission-free trading, relied on a controversial practice called payment for order flow (PFOF) for more than three-quarters of its revenue https://www.sec.gov/Archives/edgar/data/1783879/000162828021013318/robinhoods-1.htm in the first quarter.