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.
I bet the uninvested cash product drives some weird incentives - kpis around increasing ratio of sells to buys and increasing pain around removing cash.
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
Oh no, I guess someone will be going to jail!
...No? Then, uh, a punitive judgment?
>Small fine that amounts to a cost-of-doing-business.
Ah. Hm.