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Like any business, financial firms have fixed costs. You can only reduce these costs so much, hence the large percentage on small transactions.
by remyp 8y ago
Like any business, financial firms have fixed costs. You can only reduce these costs so much, hence the large percentage on small transactions.
- iovrthoughtthis 8y agoI understand that. But why are the fixed costs of moving any amount of mo way so high? It would be great to a detailed walk through of all of the mechanics the varying systems of exchange use.
- UpgradeCarton 8y agoWell, the fixed costs could probably be reduced, but there currently isn't an incentive for the bank to pass that reduction on to you, the customer.
- imhoguy 8y agoCompliance, integrations, archiving, reliability, staff, electricity, dividends -- banks and intermediaries are for-profit businesses. Somobody needs to pay for that. Crypto transfer costs too -- miners do bankers job.
- iovrthoughtthis 8y agoI want to understand deeper though. I get how their businesses work at a high level. But why is all of that required to facilitate a transaction?