Schwab cuts commissions to zero on US stocks, options and ETFs

[jayr95241]

When brokers make money off of selling order flow, is frontrunning occurring or does it just mean you can not take liquidity?

 

[Maverick2608]

https://www.zerohedge.com/news/2018...ions-selling-users-data-high-frequencstealing

 

[birdman]

My Ameritrade rate is 6.95 but my the time they tack on exchange fees, my cost per trade today was $10.43

I'm guessing Schwab will still tack on exchange fees?

 

[vanzandt]

I was on zero commission for a couple of years already and the option commission per contract is on a sliding scale for volume, a lot cheaper if you trade large lot size. They still don't have API for us mom and pop retails.

It was clear for several years that they were changing their business model, now providing banking, mortgage, loans, financial planning, wealth management, etc.

Wait... you were commission free with Schwab for a couple years?

 

[Maverick2608]

https://www.schwab.com/public/schwab/nn/legal_compliance/important_notices/material_aspects.html

 

[tm689]

I can understand how they can make money on market orders but I just wonder how they can make money on limit orders buying at the current bid and selling at the current offer.

 

[notagain]

desperate for market share

 

[ETJ]

Too much of a monopoly in futures trading - in securities it has been coming for years - the missing piece was they needed a better rate on the 10 year. A price war in institutional and a shuttering of some desks occurred. I would now fear smaller accounts will get booted next - not sure how soon, but that could be next.
BTW watch the rebating/maker - taker and PFOF get reduced now. They know how tough it is to raise prices back up.

 

[ETJ]

Free Trades Aren’t the End of the World for Online Brokers

J P Morgan estimates 3 - 4% of revenue.

https://www.wsj.com/articles/free-trades-arent-the-end-of-the-world-for-online-brokers-11569950282

This is behind a paywall if you're not a subscriber.

 

[Maverick2608]

I can understand how they can make money on market orders but I just wonder how they can make money on limit orders buying at the current bid and selling at the current offer.

I assume by "they" you mean market makers. They sub-penny the limit orders until the market moves against you (which they are the first to see), then they take your limit order.