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How do stock brokers or online stock brokers make money?
Typically money is made on a per trade basis with online brokers. With traditional brokers it can be a %, as mentioned earlier, or a per trade basis as well, called commission. For example when talking with a broker about commissions round trip cost is often used, meaning how much does it take for me to exectute and clear this trade so it gets into my account.
They also make money on the balances in the client accounts.
They also make money on the market orders (that you submit) as that adds liquidity to the market.
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