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by nv-vn
2159 days ago
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I can see where you're coming from, but it's important to remember that what they are competing on is not only time but also spreads. Spreads have tightened substantially over the past couple decades thanks to these firms [1], which means that the total amount to be made per trade has dropped significantly. On top of that, the landscape has become so competitive that trading firms are now purchasing order flow, which basically subsidizes broker commission fees for trading. This is a huge win for retail investors, as the cost of trading has made it much more accessible -- in the past you would have had to buy many more shares and make a much higher return to offset these additional costs of trading. [1] https://awealthofcommonsense.com/2016/04/trading-costs-the-n... |
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