4 ms·
That's nice, but I wonder why they are doing that. Surely it has to benefit them in some way.
by RenRav 7y ago
That's nice, but I wonder why they are doing that. Surely it has to benefit them in some way.
- ThrustVectoring 7y agoGood source for analysis on this sort of thing: https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone... tl;dr - 57% of Schwab's revenue comes from paying below-market-rate interest on customer cash and investing it in low-risk bonds and other instruments. Encouraging customers to trade means that accounts have more cash on hand to collect net interest payments on.
- RenRav 7y agoVery interesting, I was thinking something like that might be the case. Thank you.