I worked for a major investment firm, and we didn't make any money whatsoever on treasury purchases nor other stock/ETF trades. Some full service brokerages still charge a flat commission for trades or even a small per share trade fee if you're calling and going through someone on the investment desk (this is usually for larger institutional level trades), but I don't know of anyone who charges for that when it's a consumer-driven DIY trade via the online platform.How does Vanguard make money providing the service of facilitating the purchase by its customers of Treasuries?
So in short, it's a free service they offer in hopes of enticing you to pay for some other product or service later (like buying an actively managed fund or even revenue from settlement accounts/cash). Plus brokers do make a spread when they sell most other bonds, though I don't think that is generally the case with treasuries.
Statistics: Posted by Meg77 — Thu Jan 09, 2025 5:06 pm — Replies 18 — Views 2264