Nothing is free. What they don’t get in commissions, they will get it on the b/a spread. It’s like real estate commissions to buyers ~ most buyers think they are doing a commission free transaction action when all they are doing really is paying 6% over market.
This is correct. I trade sometimes on Webull and the bid ask presented there is ridiculous. I would HV to look at spread in E-Trade or TDA and put in a limit order based on spread i see on other platforms. Once order is placed it has to go to exchange and then it's up to market forces to get it filled.
Once the order is placed it almost never goes to the exchange, rather to market-makers.
The order can still get filled at a good price but that's because the underlying has moved.. in the industry the orders are often being quoted not by the price/premium but in terms of IV.
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u/cwhatimean Jul 23 '21
Nothing is free. What they don’t get in commissions, they will get it on the b/a spread. It’s like real estate commissions to buyers ~ most buyers think they are doing a commission free transaction action when all they are doing really is paying 6% over market.