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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (62664)	10/9/2019 10:16:49 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78475

Re AMTD or other online broker. It is important to keep in mind that brokers mainly live off from interest rate spreads. This will become and issue when interest rates fall. You should check the income statement from 2016 (~0% to 2018 ~2.5%) to understand how this will work itself out. I have not looked at AMTD, it I checked on SCHW and IBKR and they make the vast majority of their income from interest. Of course commissions play a part too, but they are far less important. My concern with all this is that all these trends go in the wrong direction and the profitability in the next couple of years will be significantly impaired. FWIW, I am surprised that Fidelity hasn't this countered with zero commissions yet.