Society is undergoing a significant energy transition with increased electrification aimed at phasing out fossil fuels, which will place substantial strain on electricity grids. Since grid expansion cannot keep pace with the growing demand, new solutions such as local flexibility markets are needed. These markets enable actors at the local level to trade power among themselves, helping to manage peak loads without involving the national grid operator, Svenska kraftnät. A key issue identified with flexibility markets is that selling actors receive lower compensation for their flexibility compared to balancing services on the balancing market. The purpose of this report was to investigate this through a quantitative analysis of economic compensation on the local flexibility market Sthlmflex and the Swedish balancing market. A scenario analysis was conducted with two typical actors for Sthlmflex: a small actor with 1.7 MWh capacity and a large actor with 38.5 MWh capacity. Their potential compensation during the seasons 21/22, 22/23, and 23/24 was calculated using historical data on prices and volumes, along with certain assumptions. Additionally, prices and traded volumes on the different markets were compiled and analysed. The results show that prices per MWh are generally higher on Sthlmflex, but the total compensation over an entire season is better on the balancing market. This is due to the small volumes traded on Sthlmflex, which means that actors rarely get their offers accepted, while on the balancing market they can be accepted almost every hour. In summary, the study indicates that compensation is better on the balancing market, but some uncertainty remains due to the limited data from Sthlmflex. Future research should include more markets and more detailed data.