Comment by matwood

Comment by matwood 3 days ago

1 reply

You can Google it, but AUM at scale means .03% is a significant amount of money. There's also uninvested cash that the broker can invest in t-bills and take the spread.

4ndrewl 3 days ago

Thanks for the lmgtfy :)

I bet the uninvested cash product drives some weird incentives - kpis around increasing ratio of sells to buys and increasing pain around removing cash.