Siblings Split Inheritance Into Brokerage Accounts; Dispute Over Options Profits Arises Due to Broker Differences
Two siblings inherited $180,000 from their late mother and split the amount evenly into two brokerage accounts. A year later, they noticed a discrepancy in returns despite making nearly identical options trades on the same stocks at similar times. The difference stemmed not from trade execution or fees but from how each broker handled payment for order flow (PFOF). One broker passed rebates back to traders, while the other did not. The brother's account received small monthly credits through a rebate program offered by his brokerage platform—Public—which applies direct refunds per contract traded. The sister’s broker kept all PFOF revenue without sharing it with her, leading to lower net profits over time. While both brokers operated within SEC regulations and made no misleading disclosures, the outcome left one sibling feeling disadvantaged due solely to their choice of trading app. The sister is now opening a second account for future trades but will not unwind existing positions to avoid triggering taxable events.
Topics: brokerage practices investment disputes options trading