What Is the Concept of 'Zero-Fee' Trading and How Is It Funded? ▴ Learn

What Is the Concept of ‘Zero-Fee’ Trading and How Is It Funded?

Zero-fee trading is a model where an exchange charges no direct commission on trades. It is typically funded through other revenue streams, such as charging for premium services, earning interest on collateral, selling order flow data, or through the funding rate mechanism in perpetual futures.

The goal is to attract high-volume traders.

Does “Commission-Free” Mean the Trade Has Zero Transaction Cost?

How Does the SEC Distinguish between an Initial Sale and Secondary Sales under Securities Law?

What Is the Difference between the Funding Fee and the Trading Fee?

How Do Brokerages Offering “Commission-Free” Options Trading Generate Revenue?