Where do brokerage firms that don’t charge for trades or membership make their m... | Hacker News

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		suifbwish on Jan 30, 2021 \| parent \| context \| favorite \| on: Robinhood denies claims that it sold GameStop shar... Where do brokerage firms that don’t charge for trades or membership make their money from then?

ghaff on Jan 30, 2021 | [–]

Interest on cash/float/loans, management fees on their own funds, "skim" off trades, other fees of various kinds, etc.

duemti on Jan 30, 2021 | [–]

it is a red flag indeed. They route orders to market makers that profit from arbitrage (not exchanges), and other shady stuff.

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