Trading is not the only revenue source
Even when a broker advertises zero commissions on some trades, it may earn revenue from cash balances, margin lending, order routing arrangements, funds and other products, or advisory services.
Uninvested cash deserves attention
A broker may place eligible cash into a sweep or other arrangement and earn a spread between what it receives and what it pays. The details vary by broker and account type.
Read the account terms
Investors should review disclosures, cash-sweep choices, margin terms, fees, conflicts, and order-execution information for their own account. This page is general education, not a recommendation about any broker.