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> (except for broker fees which are usually quite small) Not quite. Commissions are charged on equities. Markups are charged on bonds. Markups are the differen
by piker 8y ago
> (except for broker fees which are usually quite small)
Not quite. Commissions are charged on equities. Markups are charged on bonds. Markups are the difference between what the broker paid and how much a retail investor has to pay the broker and are much more opaque. They can be quite hefty. One just doesn't notice.
- jterenzio 8y agoIt depends. In my article I pointed out that with Fidelity there are no commissions or markups on treasuries on the secondary market. If there were, it would definitely change the calculus.