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What's the revenue model if commissions have dropped to zero? In other words, how can this be free? Are they making money via worse bid-ask spreads? I feel lik
by melvinroest 6y ago
What's the revenue model if commissions have dropped to zero? In other words, how can this be free? Are they making money via worse bid-ask spreads?
I feel like a clueless person who lives in the year 2004, wondering why internet services are offered for free.
- alteria 6y agoExcellent explainer that's worth a read [1] and it's HN thread [2] tl;dr: Interest, payment for order flow, and securities lending (but mostly interest) [1] https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone... [2] https://news.ycombinator.com/item?id=20276551 https://news.ycombinator.com/item?id=20276551
- nimchimpsky 6y agoI'd imagine if you specify a limit or market price they just get a better price, and pocket the difference.