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I agree with most of your post, but I don't think you can safely attribute broker commissions going to 0 to HFTs.
by maest 6y ago
I agree with most of your post, but I don't think you can safely attribute broker commissions going to 0 to HFTs.
- toast0 6y agoPayment for order flow comes from dark pools, run mostly by HFT. Payment for order flow incentives brokers to get more trades, and reduced commissions gets more trades. I don't know that other brokers would have gone all the way down to $0 without Robinhood pushing them, but they were already down to $5-$10.
- jimbob45 6y agoWasn’t Zecco doing $0 commissions back in 2006 already?