I'd guess that the reason that the brokerage charge is lower is because the US trades go through a third party that has payment for order flow (like Citadel). PFOF is not allowed in AU, but it is in the US. Also if the broker isn't CHESS then they can also offer brokerage at a lower rate (for example Interactive Brokers).
Bottom line is that a lot of retail traders don't care about HIN, evidenced by the popularity of CFD houses.
The profit margin based on a $3 trade above isn't taking PFOF into consideration, or matching trades against their own punters and hedging the risk with gamma. Likely they can afford to go to $0 on some popular instruments and still make a profit.
I'd guess that the reason that the brokerage charge is lower is...
-
- There are more pages in this discussion • 137 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add SWF (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
13.3¢ |
Change
0.003(1.92%) |
Mkt cap ! $30.76M | |||
| Open | High | Low | Value | Volume |
| 13.0¢ | 13.3¢ | 13.0¢ | $14.83K | 113.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 62149 | 13.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 13.5¢ | 229528 | 9 |
View Market Depth
| Last trade - 15.58pm 09/08/2024 (20 minute delay) ? |
| SWF (ASX) Chart |