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> Plus, some articles are claiming[1] that even stock you do own, whose purchase long ago settled, is being lent out without your direct knowledge by the broker
by scatters 6y ago
> Plus, some articles are claiming[1] that even stock you do own, whose purchase long ago settled, is being lent out without your direct knowledge by the broker for a profit, which is like ... what?
That's how your "free" trading account is paid for. If you don't like it, fine! Just be prepared to pay per trade and per month.
- Scoundreller 6y agoOther brokers lend out your stuff too. > TD Ameritrade earned about 4.1% and E*TRADE earned 3.5% from securities lending. Schwab’s is upper bounded at 2.2%. Interactive Brokers was an outlier at about 9.7%. (These are all net of payments to clients; Schwab, notably, passes the fee revenue for their mutual funds to the fund shareholders.) https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone... All RH did was figure out there’s enough money sloshing around to do away with commissions and disrupt them. After RH, other brokers cancelled commissions without going bankrupt. I’d be using RH if I could too. So many $s spent on commissions that were just a profitgrab.