The Stock Market, Investments, and Investing Thread
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(01-28-2021, 11:50 PM)Y2K Gamer Wrote: 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.

They sell your trade data, robinhood's main client is Citadel group, the ones who bailed out Melvin Capital recently, you do the math.

I'm closing down my interactive brokers account after this, this man is a criminal (he admits to market manipulation in the video):

[video=youtube]https://youtu.be/7RH4XKP55fM[/video]


I was lucky and timed the dip yesterday on gme and amc so It's looking very good today for me, of course I'm not one of those people who want to baghold this to 0, might take some profits again today. It's always a good idea to have multiple accounts with different brokers (at least to separate trading and investing portfolio).
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RE: The Stock Market, Investments, and Investing Thread - by Shifty - 01-29-2021, 10:14 AM

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