Hidden cost of free trading?

Stumbled across this article as I was reading through Bloomberg. :thinking: I mean, I’m not really surprised. But I wonder how this being published will affect brokers and traders. What do you guys think of this? :open_mouth:


Yeah I’m not surprised unfortunately.
There should be way more transparency from brokers to clients and possibly liquidity providers to brokers

He said that suggests there should be heightened scrutiny of the market makers that dominate an industry that executes the roughly US$28 trillion worth of US retail-stock orders each year.

Hmm sounds like they’re too big… aka have a lot of money to get around from being regulated/made to do something that’s not in their interest.

Excellent and enlightening read. Thanks for this. :star_struck:

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Yikes! This is one reason I’m glad I’m trading forex over stocks. I feel like that market is waaaay more easily manipulated than the fx market. I’m not saying fx isn’t manipulated; just less manipulated.

Thanks for sharing!!

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Avoid falling into the trap of believing that the price will continue to increase (or falling, if you short-sell). You must base your trading decisions on techniques and facts rather than how you think a stock will perform. Unbelievably, some traders base their decisions on their horoscope.

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That’s another complicated discussion. :stuck_out_tongue: But I do agree that since stocks are basically dependent on the performance of the company, I always just assume it’s manipulated. :thinking:

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HAHAHA That’s a fun but dangerous approach! :stuck_out_tongue: Do you personally know anyone who did?

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Right, but bad news can be planned and timed. Just like the movie Casino Royale.

People place a huge short, set up some bad news, then collect their profits.

It’s a movie, but I doubt it’s never happened. People probably time the release of scandals and such. It’s much easier to move a tech stock than JPY. Right?

Or am I wrong here?