marko
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Mar 16, 2011
- Messages
- 8,427
Trying to follow the money here:
From what I understand, a brokerage (Schwab et. al.) makes money these days in spite of not getting commissions through something called Payment For Order Flow which is paid to the brokers by the Market Makers.
What I don't get is why the Market Markers are willing to pay for the opportunity to make the trade.
What's in it for them? Do they control the spread and make a few cents on the delta?
How does that work? Not that I care but when I trade a stock am I getting shortchanged by $0.00000001 cents somewhere?
From what I understand, a brokerage (Schwab et. al.) makes money these days in spite of not getting commissions through something called Payment For Order Flow which is paid to the brokers by the Market Makers.
What I don't get is why the Market Markers are willing to pay for the opportunity to make the trade.
What's in it for them? Do they control the spread and make a few cents on the delta?
How does that work? Not that I care but when I trade a stock am I getting shortchanged by $0.00000001 cents somewhere?