Newer rivals such as Menlo Park, California-based startup brokerage Robinhood have been capturing market share in recent years by offering commission-free stock trades, forcing traditional brokerages to follow suit.
The firms are able to offer the free trading by selling their customers’ orders to so-called wholesale market makers, such as Citadel Securities and Virtu Financial , which aim to make a profit on the spread between the bid and the offer on the shares. Fidelity said the change will take effect on Thursday for individual investors and Nov. 4 for investment advisers. (
They lend your money out at a higher rate and tries to sell you other services. They have no choice.
I guess I am staying
Finally!
I still can't really understand how Fidelity, TD Ameritrade, E-trade and others going to earn money without charging trading fee.
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