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Is the 'zero-commission' model sustainable for brokers, or are we just subsidizing data sales?
Been seeing a lot of chatter about brokers pushing the 'zero-commission' narrative. It feels like a race to the bottom, and I can't help but wonder what the hidden costs are. Are they just making up the difference on spread, or is there something more insidious at play, like selling order flow or just plain bad execution? I’m thinking particularly about high-frequency traders versus the average retail account. It just doesn't add up for me.
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That's a really interesting point about data sales. I've been wondering about the sustainability myself, and the idea of my trading data being a commodity is something I hadn't fully considered. Do you think smaller retail brokers are doing this as much as the big ones?