3 ms·
How do they make money from you as a customer?
by 4ndrewl 2y ago
How do they make money from you as a customer?
- matwood 2y agoYou can Google it, but AUM at scale means .03% is a significant amount of money. There's also uninvested cash that the broker can invest in t-bills and take the spread.
- 4ndrewl 2y agoThanks for the lmgtfy :) I bet the uninvested cash product drives some weird incentives - kpis around increasing ratio of sells to buys and increasing pain around removing cash.
- tim333 2y agoQuite a lot of customers either have cash sitting in the account which they make interest on, or have margin debt which they charge for.
- 4ndrewl 2y agoInteresting, thanks. For a minute I was expecting someone to say "ads"
- jkolio 2y agoFront-running your trade.