Quick Downgrade For Discount Brokers in Light of SEC Comments

Mark Melin

Published onApril 4, 2014

Updated on May 13, 2021

As the SEC is considering changes to the little known “maker-taker” system, as first reported by ValueWalk, stock analysts have been quick to downgrade several brokerage firms.

Table of Contents

The “maker-taker” system is one that permits brokerage firms to receive a cash payment for sending order flow to a particular stock trading platform. If this fee were to be eliminated, discount brokerage firms, whose low fee offerings are largely funded through the rebate, would be most impacted.

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Mark Melin

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.

Quick Downgrade For Discount Brokers in Light of SEC Comments

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