3 ms·

I found the writing pretty hard to follow and overly complicated.

• maxerickson 7y ago
  Well shit.
• mrfusion 7y ago
  Anyone want to share the gist of that article?
  • maxerickson 7y ago
    Discount brokerages mostly make money on interest.
    • mrfusion 7y ago
      Interest on what though? Isn’t most money immediately invested or put in money market funds?
      • maxerickson 7y ago
        They offer their own money market funds that are below 'market' rate and collect the difference.
      • toast0 7y ago
        A lot of people leave some money in the sweep account, so it's liquid for future trades. Or leave it for a few days after a sale before transferring it out.
• yborg 7y ago
  Read Levine's explanation linked earlier in the thread.