I am stock Broker who helps other stock investor by selling and buying their stocks with an exchange some amount of commission (like 5% on their profit). But I don't understand how other stock Broker like eToro who don't take commission or stock trading service charge and also make huge revenue at end of the Day. Suggest me some alternative method for making revenue without charging any commission to the stock investor ....


No commission brokers like Fidelity, Schwab, Vanguard, etc. make billions of dollars per year from investors. They make money from:

  • Net interest income

  • Mutual fund and ETF service fees

  • Advice solutions

  • Sale of annuities

  • Payment for order flow

  • Managed money


Your savings, as an investor, are not always "invested." So the brokers "lock" your uninvested money and put it in a brokerage subsidiary or reinvest it on its own terms on cash sweep accounts. However, the broker pays you some interest in return, of course.

In this way, you will, at least, gain some money interest then let your account sit still. Here's how they benefit: At present, Charles Schwab pays less than 0.1% of interest rates on cash sweeping accounts and invests it at about 2.5%, which pockets the gaps.


These firms no longer charge fees, but they don't earn revenue from the stock transactions. Notice that on various brokers, payment for the order flow can vary. Basically, such brokers receive payments to deliver buy and sell orders to their clients to algorithmic trading companies. These computerized trading companies align customers with their own selling orders.

  • Did you mean to say that they do earn fees from stock transactions?
    – Lawrence
    Mar 31 '21 at 10:37
  • Well, they do not charge fees directly but get payed by a market maker. See my answer. In the end the customer is always paying ;)
    – Manziel
    Mar 31 '21 at 11:03
  • Degiro charges you for uninvested funds because the best available places for them to park it have negative interest rates. Not sure they're making profit on that. Maybe they charge a spread.
    – user253751
    Mar 31 '21 at 13:40

Most "free" brokers live on payment for order flow. The market makers paying the broker in turn live of the bid-ask-spread. In the end, you are paying the bid-ask-spread, so free really needs to be in quotes.

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