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what does $0 commission mean? unless they're sourcing assets at mid then it's not 0 commission. and they can't be giving trades at mid to customers unless they'
by retube 9y ago
what does $0 commission mean? unless they're sourcing assets at mid then it's not 0 commission. and they can't be giving trades at mid to customers unless they're taking a loss on every transaction. they must be charging bid-offer - so how much?
- what_ever 9y agoI think it's pretty clear in the industry what commission means when it comes to trading stocks. It's on top of the spread. Go to any other broker and they have the same spread. It's not going to be much better at brokers for individual investors like us. And if you are worried about getting worse spread, use limit orders.
- whoisit_itsme 9y ago"Go to any other broker and they have the same spread." Wrong. This is precisely how they operate their business model: they receive payment for the order flow, and don't compete with traditional brokers on execution price for marketable orders. I suggest you look at the public 605 reports for execution quality statistics. "And if you are worried about getting worse spread, use limit orders." This has nothing to do with it really.