Comment by wil421
10 months 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.
10 months 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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