The Stock Market, Investments, and Investing Thread
I guess this is some sort of comment about free/ discount/ brokerage firms.

How do they make their money?

Some make their money by offering free trades to entice people and then charge them for other products they offer like money market funds, banking etc, or taking their money from banking, paying small amount of interest and using the spread to enrich themselves or loan to others.

I had some conversation with a trader a few years ago, and the reason he articulated for the costs going down was brokerages getting in on your trades before your trade had even gone through. I wish I could source this with some evidence, but given the prevalence of HFT I'm sure ya'll know what I mean.

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RE: The Stock Market, Investments, and Investing Thread - by Y2K Gamer - 01-28-2021, 11:50 PM

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