The Hidden Cost of Trading Stocks
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.
