Now that almost every brokerage has followed in the footsteps of Robinhood and adopted commission-free trading, how do these companies make money? One main source of revenue is from a small sum of ...

Robinhood, the uber-popular brokerage, helped usher in a new era of commission-free trading. It pushed established financial institutions, such as Charles Schwab and Fidelity, to follow suit. Sadly, ...

The old way a financial brokerage made money was to charge a fee whenever someone bought or sold stock. A company like TD Ameritrade or Charles Schwab would charge $4.95 or $6.95 (or whatever) in ...

Payment for order flow (where market makers pay brokers to route orders for execution) and the duty of best execution (which requires a broker to seek the most favorable terms reasonably available for ...

In January 2021, the GameStop trading halt exploded across the headlines. Consumer advocates and the financial press pointed fingers at a number of industry players, paying particular attention to the ...

PFOF allows brokers to offer commission-free trades by routing orders to market makers. Investors often receive better prices than the NBBO via market maker payments. Critics argue PFOF may prevent ...

Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam holder, and currently holds a Life, Accident, and Health License in Indiana. He has 8 years experience in finance, from ...

There’s no such thing as a free lunch. You’ve likely heard this adage about how you can’t get something for nothing. Yet, some “free” things really do feel free. Ever signed up for a “free” trial?

Payment for order flow is the money brokerage firms make by sending trade orders to high-frequency traders or market makers. When an individual investor places a trade, the brokerage firm sends the ...