3 ms·

> I thank them for pushing mainstream retail commissions to $0 This isn't a positive. Had they charged fees, they wouldn't today be doing the bidding of of the

• shmoogy 6y ago
  $0 commissions are huge, and allow people to (Along with partial stock buys) invest little amounts on a recurring basis. Robinhood forced the major brokers to do $0 stock trades, just need a few others to do $0 option trades too. The fees aren't crazy, but they add up if you do lots of spreads.
• smnrchrds 6y ago
  Matt Levine has explained that even before the fees going to zero, the fees represented a small percentage of brokerage revenues. Elimination of the fees had an almost negligible effect on brokerage bottom lines—certainly not enough to change their entire behaviour. > Commissions are way down there; in 2018, they represented a bit less than 7% of Schwab’s net revenue. 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...
• toast0 6y ago
  Market makers were paying for order flow when I had to pay a $20 commission to sell my equity based compensation, and they still paid for order flow when I had to pay a $0 commission. I'm much happier paying $0 than $20 for the privilege of turning my compensation into cash. The spreads decreased a bit over that time too, which is also nice.
• gruez 6y ago
  Paid brokerages charge you money AND still sell your order flow.