4 ms·

I don't get it. How does Alpaca offer free broker services?

• smabie 6y ago
  Probably payment for order flow and earning interest on cash, like everyone else. Or maybe they don't make any money, I dunno.
• shoo 6y ago
  https://www.bloomberg.com/opinion/articles/2019-10-02/the-trades-will-be-free-now https://www.bloomberg.com/opinion/articles/2019-10-02/the-tr... https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...
• adamsvystun 6y ago
  From official site: https://support.alpaca.markets/hc/en-us/articles/360011047171-Business-Model https://support.alpaca.markets/hc/en-us/articles/36001104717...
• jb775 6y ago
  These "free" stock trading companies cut deals with high-frequency trading firms that buy order flow. The more order flow they buy the more money they make (essentially risk free to them), which is why they are willing to send boatloads of money to companies like Alpaca/Robinhood. High-frequency trading firms aren't in the business of stocks, they are in the business of building the fastest tech on the planet to connect buyers with sellers, therefore making markets more efficient.