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>More importantly, this claim is neither axiomatic nor defended by the article. How precisely do these rebates harm investors? The rebates are effectively bein
by cwkoss 9y ago
>More importantly, this claim is neither axiomatic nor defended by the article. How precisely do these rebates harm investors?
The rebates are effectively being taken out of retail investors' money. If the rebates did not effect brokers' behavior, there would be no point in offering them. If the rebates do effect brokers' behavior, then it means brokers are willing to accept a marginally worse price for their investors in order to get the rebate.
- dsacco 9y agoThe money you lose in the cost of rebates being passed on is less than the money you gain through enhanced price discovery (so you overpay for securities less often) and enhanced liquidity (so you can actually fulfill your trades more often).
- pishpash 9y agoThere is no neutral comparison being run. You should be comparing against a market where every trade is happening on lit exchanges.