The price of free stock trading

2024-12-25 00:41:45 source: category:Invest

With a click of a button, anyone can become an amateur stock trader. This is all thanks to companies like Robinhood, E-Trade, and Charles Schwab, which allow everyday people to buy and sell stocks for free. But how are these companies making money?

The magical ingredient is a practice called payment for order flow. However, this practice has garnered significant controversy, to the point where the SEC (U.S. Securities & Exchange Commission) wants to crack down on it. Today on the show, we break down the players in the stock trade to explain why.

Music by Drop Electric. Find us: Twitter / Facebook / Newsletter.

Subscribe to our show on Apple Podcasts, Spotify, PocketCasts and NPR One.

More:Invest

Recommend

See Blake Shelton and Gwen Stefani's Winning NFL Outing With Kids Zuma and Apollo

There’s no doubt Blake Shelton and Gwen Stefani scored with their family game day.The musical pair r

Sorry Gen Xers and Millennials, MTV News Is Shutting Down After 36 Years

It's the end of an MTV era.The network's MTV News division has shut down 36 years after its inceptio

Only Kim Kardashian Could Make Wearing a Graphic Tee and Mom Jeans Look Glam

Kim Kardashian is letting her clothes do all the talking.The Kardashians star made quite the fashion