How Brokerages Get Paid
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Also, execution is way better than it used to be.The spread has tightened across the board. . . Is payment for order flow a problem for the overall market. It's not a problem for retail investors. It might be a problem for institutional investors or other traders who want to trade against that retail order flow that can't do it right now
Individuals finance the growth of the economy, and our market is structured to make it efficient for individual investors to own stock. What about the sub-penny rule. Right now, exchanges can't trade in increments below a penny, but market makers like Citadel and Virtu can execute in sub-pennies
No.Retail investors are getting a much better deal than they have ever gotten. When I started in 1980, it cost $200 to get in on a trade, and $200 to get out, and you might not even get confirmation of the trade for a couple days.
They also don't include odd lots orders of less than 100 shares.They should also improve the benchmarks for pricing large orders.All of this would provide greater information so that investors can better understand how the orders are being executed.And as you increase disclosure it increases competition in the marketplace