The Hidden Costs of Commission-Free Brokers in 2025
The rise of commission-free trading has democratized market access, but savvy investors know the true cost lies beneath the surface. Payment for Order FLOW (PFOF), suboptimal trade execution, and ancillary fees now define the profit models of retail brokerages.
Leading platforms tout zero commissions while monetizing order flow—a practice that creates conflicts of interest. Options contracts, margin rates, and transfer fees further erode returns. The most sophisticated traders in 2025 analyze execution quality and interest rates on idle cash, not just headline pricing.
This shift mirrors crypto exchange dynamics, where makers and takers navigate hidden spreads. The parallel is clear: transparent pricing always trumps marketing gimmicks in both traditional and digital asset markets.
