is there a broker where it's affordable to trade a small number of shares?

Discussion in 'Retail Brokers' started by 1a2b3cppp, Feb 6, 2018.

  1. Are brokers with free commission profiting from the spread?
     
    #11     Feb 9, 2018
  2. ajacobson

    ajacobson

    it might be better if you just asked the question that your driving toward. Would it be in the broker's self interest to widen the spread ?
    Brokers sell your flow to a consolidator who's rebate to your broker does have a spread component in it, but trades are still done subject to a market like and a NBBO - National Best Bid Offer which can't be violated(rare exceptions). What if I'm trading very ill-liquid instrument where there is exchange/dealer competition ? Then there is a disseminated quote - take it or leave it.
    Are there brokers who don't/won't sell flow ? Yes,but I doubt it's relevant. All this get disclosed by the broker's quarterly.
    The rebate/payment deals are public in US markets. It is in your broker's best interest to get your trade done at NBBO or better and then to move on.
     
    #12     Feb 10, 2018