Home
Ten Ways to Protect Your Investments and Identity Online
Finding Stocks Using Trading-Pattern Variables
The Ulterior Motives of Some Online Stock Message Board Members

Online Investors’ Ten Most Common Questions

How can deep-discount online brokers make money charging $5 or less for trades?

Don’t feel too bad for the online brokers. Although commissions have fallen through the floor and are free in some cases, brokers are doing fine.

Keep in mind that the costs to execute trades have also fallen. It generally costs online brokers between $2 and $6.50 to execute a trade. Larger brokers usually pay closer to $2, meaning that a vast majority of online brokers are able to make money from the commissions they charge.

  • Add a Comment
  • Print
  • Share

Recommends

Promoted Stories From Around The Web

COMMENTS »
blog comments powered by Disqus
Know Who Issues Debt Before Buying Bonds Online
How to Share Stock Ratings with Other Investors Online
How to Create an Online Stock Screen
Evaluate Stock- and Mutual Fund–Picking Newsletters and Websites
What Is the Whisper Number in Investing?