Apparently Charles Schwab just cut commissions to zero, which was always going to happen but feels plausibly sped up by RobinHood.
(If you don’t understand why they could do that, c.f.
kalzumeus.com/2019/6/26/how-… )
(If you don’t understand why they could do that, c.f.
kalzumeus.com/2019/6/26/how-… )
“So that’s a great thing!”
I think there is a little nuance, honestly. Cutting commissions encourages trading but trading is, for the overwhelming majority of their customers, bad.
Commissions are also visible and legible; the actual way they make their money is far less so.
I think there is a little nuance, honestly. Cutting commissions encourages trading but trading is, for the overwhelming majority of their customers, bad.
Commissions are also visible and legible; the actual way they make their money is far less so.
“Yeah they are selling customers out to Wall Street.”
*sigh* No, they are encouraging customers to keep (too much) cash deposited with them and then buying lots of mortgage-backed securities.
This drives product decisions, like cash allocation on their roboadvisor.
*sigh* No, they are encouraging customers to keep (too much) cash deposited with them and then buying lots of mortgage-backed securities.
This drives product decisions, like cash allocation on their roboadvisor.
