You know how casinos lay it all out, they're taking a gamble just like us? But get this, brokers might just be outdoing them in their own sly way. I’m saying brokers might actually be worse. Why? They’ve got this neat, little setup where they rake in their shares through bid-offer spreads and commissions, all while carrying zero market risk. It’s like having their cake and eating it too, but in secret. We’re all out here rolling the dice, while brokers are the house, cashing in risk-free. What’s your take? Are brokers just silently stacking the deck, snagging a surefire win with every trade we make?
These are all service providers where everybody can decide for themselves if we are interested in their services or not. Buying stocks is something many small investors like to do in their spare time, unfortunately the big banks and brokers are going to take advantage of that. Just look at the Robin Hood scandal that offers free trading for all clients. Which seems like a nice feature for any new trader that can buy and sell without commission from his mobile phone. In the end it turned out the broker sold the client data to hedge funds that took advantage of them and profited from the trades. So, brokers will try and find any way possible to make a profit. There is a lot of competition in the broker business like with casinos. In the gambling world the casinos will offer cashback to make it more interesting to stay at one casino. In the trading world, brokers have promotions that reward investors that trade regularly. At least with my online broker I keep getting notifications, that if I reach 10 trades per quarter, the fees are going down. Comparing fees across the industry is important and can save a lot of money in the end.