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I thought they were paid by trading fees? That fee I get charged every time I make a trade.
by rpedela 13y ago
I thought they were paid by trading fees? That fee I get charged every time I make a trade.
- colin_mccabe 13y agoMarket-makers make money off of the bid-ask spread, even if "trading fees" (i.e. commissions) are zero. Basically, the bid-ask spread is the difference between the price the trader bought the stock at, and the price they sold it to you at.