The Hidden Cost of Trading Stocks
The price of the stock and the cost of trade are virtually never the same. There are comissions, brokerage fees, bid/ask spreads, etc. There are simple and straight forward explantions for most the extra costs incurred during a trade, but there is also a side of trading that isn’t always explained or understood. The extra costs brought on by high speed trading, dark pools, insider trading, and so on aren’t always a line item on a trade ticket, but they certainly have a very large influence on the price of a stock, which inevitably flows through to the cost of a trade.
