Comment by wil421
3 days ago
All the major US brokers started doing free trades for stocks and etfs. For Vanguard, most of the index expense ratios are really low, like %.05 percent, but that’s not a trading fee.
3 days ago
All the major US brokers started doing free trades for stocks and etfs. For Vanguard, most of the index expense ratios are really low, like %.05 percent, but that’s not a trading fee.
Even for paid transactions that typically give better pricing (IBKR Pro), the prices are extremely cheap.
How do they make money from you as a customer?
Quite a lot of customers either have cash sitting in the account which they make interest on, or have margin debt which they charge for.
Interesting, thanks. For a minute I was expecting someone to say "ads"
You can Google it, but AUM at scale means .03% is a significant amount of money. There's also uninvested cash that the broker can invest in t-bills and take the spread.
Thanks for the lmgtfy :)
I bet the uninvested cash product drives some weird incentives - kpis around increasing ratio of sells to buys and increasing pain around removing cash.
Front-running your trade.
This is illegal and is absolutely the dumbest way to make money.
nice try buddy, that’s ILLEGAL
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