Just skimmed the first part...This might be why Schwab's stock is so high.
Though retail broker-dealers have reduced commissions, some have maintained or
increased other sources of revenue, such as: (1) payment for order flow; (2) advisory services or
managed accounts from broker-dealers that are dually registered as investment advisers or from
affiliated investment advisers; (3) interest earned on margin loans and cash deposits; (4) income
generated from securities lending; and (5) fees from additional services. Recent Commission
enforcement actions have highlighted some of the conflicts faced by broker-dealers.28
Some broker-dealers report that younger investors and smaller accounts have been
notable sources of new account openings. For example, Charles Schwab indicated that
individual investor customers age 40 and below, with account balances below $100,000, are
driving a greater percentage of trading volume than in prior periods.29Robinhood reported that
its average customer is 31 years old and has a median account balance of $240.30
